Is there any compliance reg that would prevent the bank from requesting that a credit card account be closed at the time we send the payoff in a consolidation loan?

Not is it was a specific condition of the loan contract with the borrower. Nothing prevents them from opening new cards however and debt consolidation lending is a tricky business unless you have really good collateral.

Thanks Randy. That makes perfect sense to me.

Is there any compliance reg that would prevent the bank from requesting that a credit card account be closed at the time we send the payoff in a consolidation loan?

I am assuming you are enclosing a signed statement from the borrower requesting the credit card issuer close the account, otherwise the request is meaningless and the credit card issuer has no obligation to close the account based on your request alone.

And I doubt it can be done with a form submitted with a payment.