Skip to main content

Search

Truth in Lending: 13.5.5.2 Rebate of Third-Party Charges

Leases may include within the monthly lease payment certain third-party charges that should be rebated on early termination, such as service contracts, credit insurance, and GAP insurance. These third-party charges are earned over the full term of the lease, and early termination should result in a partial rebate.

Consumer Banking and Payments Law: 5.1.5.2.1b Demand deposit and savings accounts

The term “demand deposit” account is not defined in either the EFTA or Regulation E. However, Regulation E does indicate that a demand deposit account means checking account.68 The CFPB has also stated that a “demand deposit account is just a different term for a checking account.”69 The term is also sometimes understood to include checkless checking accounts.

Consumer Banking and Payments Law: 5.5.4.4 Potential for Unlimited Liability

Whether or not an access device was lost or stolen, the consumer’s liability is potentially unlimited if unauthorized charges are not reported within sixty days of the statement (or longer in certain situations). That unlimited liability, however, only applies to charges after the applicable reporting deadline, and only if they could have been prevented with timely notice.

Consumer Banking and Payments Law: 5.6.3.2 Financial Institutions May Not Impose a Fee for Investigations

The institution is prohibited from imposing a fee or other charge upon the consumer for the investigation if a billing error has occurred, even if the error occurred in a different amount or manner than was alleged by the consumer.930 This includes any charge related to the investigation or to documentation, and also any fee for contacting customer service to inquire about a transaction or assert an error.931

Home Foreclosures: 8.8.3.5.1. Individual arbitration

Where an enforceable arbitration agreement forecloses class arbitration, class action litigation in court, and individual court litigation, adequate client representation may require raising the consumer’s claims in an individual arbitration proceeding. While this is not preferred, under some circumstances consumers may achieve good results, particularly if the selected arbitrator has an open mind on consumer claims.

Home Foreclosures: 8.8.3.5.2 Class-wide arbitration

Where an arbitration clause prohibits class-wide arbitration, an arbitrator is unlikely to allow such relief, and a court would almost certainly overturn a class-wide arbitration award. Most, but not all arbitration clauses prohibit class-wide relief—some are silent on the issue.

Home Foreclosures: 15.3.3.3.3 Mortgagee optional election for non-borrowing spouses with HECMs predating August 4, 2014

After several years of continued advocacy by consumers and servicers concerning the significant problems and denials due to MOE deadline issues, HUD substantially revised its policy with the issuance of Mortgagee Letter 2019-15 on September 23, 2019. Like the prior versions of the MOE, Mortgagee Letter 2019-15 gives lenders the option to assign the loan to HUD and allows an eligible non-borrowing spouse to remain in the home.

Home Foreclosures: 5.5.2.7.2 Impact of E-Sign and UETA when state or federal statutes require written notices to borrowers

State statutes mandating foreclosure-related notices to borrowers are typically clear in defining the content of a required written notice and how it must be served. For example, a New York statute requires a ninety-day notice to the borrower before a lender can commence a judicial foreclosure.279 The notice must contain a prescribed text explaining how the New York foreclosure process works and describe steps the homeowner can take to avoid foreclosure.