|
|
|
Upcharging and Disclosing It Correctly
by David Dickinson, BOL Guru
Guru BIOS
Question: We charge $15.00 for the credit report. Our actual charge for this fee is less than that but we include the full $15 in the finance charge (on loans other than for residential mortgages). Is this a problem?
In the Itemization of the Amount Financed, should we put the Credit Reporting Agency as who this fee is paid to on the customer's behalf or should we put the bank's name?
Answer: Yes this is a problem. Section 8 of RESPA prohibits upcharging (charging more than your actual cost). This is not only a violation of RESPA, but it is a criminal offense. It doesn't matter if you include this in the finance charge. You will find this memo of special interest. If you stop overcharging, your second question will be answered.
First published on BankersOnline.com 8/01/05
Privacy Policy Disclaimer Recommend This Site ! Contact Us
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
|
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!