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#1892075 - 01/30/14 04:36 PM Charging Release fees upfront
KMG365 Offline
Member
Joined: Jan 2014
Posts: 83
It is our understanding that we are not allowed to charge a release fee upfront on any type of contract because of Tennessee State Law. It that correct? And if so, where in state law can I find it??

Thanks,
Tammy

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#1892286 - 01/30/14 08:30 PM Re: Charging Release fees upfront KMG365
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
That's news to me. Every bank I've worked at in TN has charged release fees upfront.
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I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1892731 - 01/31/14 08:25 PM Re: Charging Release fees upfront KMG365
hgliii Offline
Platinum Poster
Joined: Mar 2012
Posts: 574
I agree. You are required to release a DoT when payment in full is presented. I am not aware of any bank in TN requiring the payment of a release fee, before releasing the DoT.

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#1892751 - 01/31/14 08:50 PM Re: Charging Release fees upfront KMG365
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
hgliii--I think the OP is talking about collecting the fee to process the release at closing.
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1892779 - 01/31/14 09:50 PM Re: Charging Release fees upfront KMG365
hgliii Offline
Platinum Poster
Joined: Mar 2012
Posts: 574
I realize that and agree with your post. I was wondering when they would try to collect the fee if not at closing.

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#2026578 - 07/10/15 06:17 PM Re: Charging Release fees upfront KMG365
Still Smiling Offline
Platinum Poster
Joined: Nov 2007
Posts: 767
ok, i'm resurrecting this thread...
Are you guys saying that we are allowed to charge the borrower either upfront or at the time of payoff for the cost to release the DOT?

The reason i am questioning it, is because an attorney has informed us that according to 66-25-115 it is prohibited.
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Comments are strictly my own and not that of my employer.

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#2061761 - 02/02/16 02:13 PM Re: Charging Release fees upfront KMG365
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
I know this is old, but found this while researching this topic. Thought I'd post it here in case it comes up again (as it seems to every few years).

http://www.sitemason.com/files/l5bX7a/ReleaseFeeOpinion20101228111833.pdf
Last edited by Dani York, CRCM; 02/02/16 02:14 PM.
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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