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2009 delivers new rights to banking and credit card victims
2009 brought about some important new rights for finance consumers.
As shocking as it sounds, Congress actually did some things to protect the victims of predatory credit card companies and banks this year. New laws put restrictions upon finance charge increases, additional fees, marketing of credit and notice about changes in financial agreements. Here's a summary of the two major legislative packages:
Credit CARD Act of 2009
- Requires card companies to provide a 45-day notice of an increase in your annual percentage rate. Credit card companies may not raise interest rates on new account holders for the first 12 months. Limits have been placed on the creditors' ability to impose changes to the terms, and promotional rates must be offered for at least six months.
- Double-cycle billing is no longer allowed. Nor can you be penalized for on-time payments.
- You have the right to prohibit a creditor from completing any over-the-limit transactions resulting in a fee.
- Over-the-limit fees can be billed only once unless the debtor gets an additional extension of credit.
- It requires penalty fees to be reasonable. The Federal Reserve is required to adopt regulations to determine what is reasonable.
- Creditors can't use the term "fixed rate" unless the credit card actually has a fixed rate.
- Creditors must send you their bills 21 days before they are due. Payment due dates must be on the same day of each month. When a payment due date falls on a weekend or holiday, the consumer can pay the bill on the next business day without being late.
- Card issuers must consider your ability to pay before giving you a credit card or increasing the credit limit.
- Your credit card bills must now tell you the following: The date a payment is due before you are charged a late-payment fee; and if your interest rate changes because your payment was late.
- Companies must now publish their credit card agreements on the Internet, and provide an archive copy to the Federal Reserve Bank.
- There are new protections for card holders under the age of 21.
- It is now generally unlawful for companies to issue gift certificates ( including store gift cards and pre-paid cards ) that have an expiration date. In addition, stores and credit companies may not charge you a fee for not using the gift card/certificate immediately.
Truth in Lending Amendments, Mortgages.
In 2008, Congress enacted the Mortgage Disclosure Improvement Act which amends the Truth in Lending Act. The new law took affect in 2009. Specifics include:
- Creditors must now make early disclosures on closed-end loans that are secured by a consumer's home, even when it is not the consumer's primary residence.
- You must now be given a disclosure statement before you are charged any fees. The only exception is a fee for obtaining your credit report. Disclosures must be mailed or delivered seven business days before fees can be levied.
- If the annual percentage rate in the disclosures becomes inaccurate, the creditor must provide a new notice of disclosure.
Author David F. Scranton has just published an extensive summary of your new rights as a credit-card user, bank savings account holder, and mortgage customer. The article, titled "Year of the Consumer," is published on Mondaq. Viewing articles on Mondaq.com requires registration, but if you are interested in a summary of most of the new rights you now enjoy as a debtor, this scholarly article is for you.
Money & Privacy Banking, Finance, & Credit Cards -
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Attorneys and their clients allowed to make ILLEGAL LOANS
In February of 2008, I was forced to close on a private mortgage loan, although I am in the industry, I don't do residential so I am not aware of the issues and criteria. A closing package that was virtually nothing came over the internet and I signed it all, after reading it and sent it back, that day had been a horrible day, my father in law had been placed in Hospice, my mother in law who was in a wheelchair was all alone, I had three kids at home, and husband who was at Hospice 16 hours a day with his father until his passing 4 days later.
This loan happened in Florida and this is what I would like everyone to be aware of; there are major changes in the lending industry now, and if the lenders whether they are private or conventional do not follow the basics there are laws in place to protect consumers against what are deemed FRAUDULANT/PREDATORY PRACTICES.
To begin with, Lloyd Falk and Russell Kohuth are the parties that I have issues with, and those issues are as follows: Falk the attorney prepared the closing documents and also oversaw the closing. Falk collected $20,000 from me on the HUD, and then when I fell into default he began foreclosure proceedings on me. Falk never disclosed anything on this file, not the rate, the term or the points, there are none of the following in the file to show he had proper disclosure, no Good Faith Estimate, No Truth in Lending Statement. The lender and the attorney have violated the Usury Laws (Federal), in that, with the costs on the HUD added back into the rate without the actual closing costs the lender and the attorney are at 24.99% on a $375,000 loan. Usury is max 18% with all costs included, this is just with rate, and points paid to the lender and the broker. Broker never supplied me with a broker contract stating what his points would be, this to is illegal, you cannot collect a fee if you have not made the borrower aware of that fee, and the borrower must sign a broker contract for that to be valid.
Lloyd Falk and his client my lender have also touched on another area and that is, the attorney that prepared the loan for closing or the documents for that closing cannot be the same attorney to foreclose, this is a conflict of interest. Lloyd Falk and his client, my lender are basically "extended" family, Russell Kohuth the lender put Mr. Falk through law school. So there are many variables in this FRAUDULENT MORTGAGE and people out there need to be aware of people like this, these two set me up to fail, $4996 per month on the mortgage, plus insurance and taxes of $6000 per year. If this had been disclosed properly I would have never closed on this loan, it was not and I was told that if I did not close on the loan, that the lender, the attorney and the broker could sue me and still get their monies...
BEWARE, MAKE SURE THAT YOU HAVE TOTAL DISCLOSURE BEFORE CLOSING ON ANY REAL ESTATE LOAN, ESPECIALLY IF YOU ARE FORCED TO GO THROUGH ALTERNATIVE CHANNELS.
reg settlement of credit card dues.
dear sirs, My friend is holding a icici bank credit card. In that he has to pay an outstanding of rs.50,000/-.If he wants to close the card and coming for an settlement the total amount can be reduced.secondly he wants to repay the amount in 12 months of time.Kindly suggest.Thank you.
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