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#1621760 - 10/28/11 07:48 PM Rescission
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Can a customer have more than 3 days rescission?
the situation is that the customers have signed documents on Monday with a three day rescission disbursing today (Friday). now the customers want to think over the loan amount over the weekend because they are questioning if they want to raise or lower the loan amount. At this point would it be easier to just have them close the loan and start a new one even though they will have all those fees (LLPAs etc)
Last edited by Bec; 10/28/11 07:52 PM.
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Lending Compliance
#1621767 - 10/28/11 07:57 PM Re: Rescission Bec
Doug Hendrickson Offline
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Doug Hendrickson
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In some cases, if the required notice and material disclosures are not delivered as required by 226.15, the customer can have up to three (3) years to rescind.

However, if you're asking if the lending institution can give the customer more than the required three days, I'd defer to a guru on the interpretation of the language.
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#1621773 - 10/28/11 08:07 PM Re: Rescission Doug Hendrickson
Bec Offline
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The Great White North
The customer has already had their three days but now wants more time. What would be the best thing to do?
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#1621806 - 10/28/11 08:34 PM Re: Rescission Bec
Dan Persfull Offline
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Bloomington, IN
You are under no regulatory obligation to allow them additional time to rescind. It's a business decision whether you allow them additional time.
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#1621808 - 10/28/11 08:36 PM Re: Rescission Bec
#Just Jay Offline
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It sounds like they need to recind, think out what they really want to do, and then move forward with a new application.

I don't really think giving them more time would hurt you, but if they are already unsure now, what will be an appropriate length to take this out until they are comfortable? Much more than a couple of more days and now you are really messing with payoffs, payment streams, etc.
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#1621839 - 10/28/11 09:02 PM Re: Rescission #Just Jay
Bec Offline
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Bec
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The Great White North
Thank you all.

It looks like we are just going to have them rescind.

On a side note, if the Right to Cancel was dated that they have no later than 10/27/2011 to rescind....would it be ok to have them sign the document on 10/28/2011 to rescind? In my mind it doesn't seem like a violation of anything and if anything it would benefit the customer. ANy thoughts on that?
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#1621892 - 10/29/11 01:20 AM Re: Rescission Bec
Rocky P Online
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Joined: Jun 2003
Posts: 7,441
Florida
Bec, by allowing them to rescind, the bank must return/refund every amount that they paid into the transaction - all fees, charges, etc. it would be like it never occurred. If there was an appraisal, attorney, credit bureau fee, flood, etc. all MUST be given back.

Personally, unless it was a huge client, they made the mistake, and I would make them pay the loan off, but not rescind.
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