Collection communication for demand deposit accounts (i.e., overdraft notices, NSF notices, request for payment, etc) - are we allowed to send such notices if we are aware of an active bankruptcy case? What if we are not made aware of the bankruptcy case?
We are dealing with the problem of credit reporting on bankrupt accounts. Our reporting is done at the loan level therefore non bankrupt co-borrowers are affected. Can we just suppress reporting?
When a customer files bankruptcy, can we report the loan as being charge off or does it have to be as bankruptcy?
We have a charged off client who filed bankruptcy. Can we refuse to cash a check payable to them by one of our other clients?
If we have two applicants and one has excellent credit and one has bad credit and we decline the loan, is it required that we send out an Adverse Action Notice to the applicant with the good credit and indicate that the co-applicant does not meet the minimum standards?
REG E Question: A customer authorized a purchase for a product. The product has not been received and the customer contacted the company and found out that the company has filed for bankruptcy. Our customer then filed an unauthorized affidavit for his refund. Is the bank responsible for refunding the provisional credit when the customer did say in his response that he did authorized the purchase?
In the case of a personal bankruptcy, I noticed that the IRS rules say we are not required to file. Can we file anyway, and can we file at any time during the year, or should we wait until we prepare the 1098 statements?
One of our mortgage lenders would like to place an ad in the classified portion of the local newspaper. The ad reads: Have you filed bankruptcy or had your home foreclosed on in the past two years? Call [name] to get your credit checked. You may be eligible to purchase a home. Numerous programs available to be a homeowner again. Then she lists her name and cell phone. The bank is not mentioned. Does it need to be? Would this ad be considered compliant? What would make it compliant? Is this a bad idea?
If we report on a 1099-C cancellation of debt to the IRS, can we continue to pursue the debt or only accept voluntary payments? If we report, are we limiting ourselves on the possibility of recovery? I'm excluding bankruptcy issues. Can you provide the citation or source document information for further research?
For HMDA reporting purposes, if a bank knows that information submitted by a prospective borrower on a standard residential loan application is not correct, can the bank modify the application itself or just leave it as is, which means the HMDA reporting would not be accurate? I am a regulator asking this question on behalf of one our bankers. He explained that his bank has noted errors and/or discrepancies throughout the application form, including: <ol><li>The borrower refinancing a present residence marks on the declarations that he or she has had no ownership interest in a property in the last three years. <li>The borrower indicates he or she has not filed bankruptcy in the past seven years but a credit report and public records indicate there has been a filing. <li>The borrower indicates he or she is both a U.S. citizen and a permanent resident alien. <li>A borrower indicates he or she intends to occupy the property as a primary residence but elsewhere in the application it is evident the property is for investment purposes. </ol>Perhaps the question about what to do on a loan application when these instances are discovered needs to be answered separately for each instance. I will relay your response(s) to my banker.