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#2192063 - 09/10/18 07:10 PM Notice of Negative Information
Hales53 Offline
New Poster
Joined: Mar 2017
Posts: 23
We provide a Notice of Negative Information when a customer closes a loan with the bank. If the bank is only providing this notice should the bank change this and also put this on the statement or is one notice enough? From 623(a) (7) I would have to believe that we should be providing the notice on the statement prior to or no later than 30 days after sending negative information to a CRA.

Thank you!

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#2192067 - 09/10/18 07:36 PM Re: Notice of Negative Information Hales53
StevenD Offline
Gold Star
StevenD
Joined: Nov 2000
Posts: 489
KY
Look at (7)(A)(ii)

(7) Negative Information
(A) Notice to Consumer Required
(i) In general. If any financial institution that extends credit
and regularly and in the ordinary course of business
furnishes information to a consumer reporting agency
described in section 603(p) furnishes negative information
to such an agency regarding credit extended to a
customer, the financial institution shall provide a notice of
such furnishing of negative information, in writing, to the
customer.

(ii) Notice effective for subsequent submissions. After providing
such notice, the financial institution may submit
additional negative information to a consumer reporting
agency described in section 603(p) with respect to the
same transaction, extension of credit, account, or customer
without providing additional notice to the customer.

(B) Time of Notice
(i) In general. The notice required under subparagraph (A)
shall be provided to the customer prior to, or no later than
30 days after, furnishing the negative information to a
consumer reporting agency described in section 603(p).
(ii) Coordination with new account disclosures. If the notice
is provided to the customer prior to furnishing the negative
information to a consumer reporting agency, the notice
may not be included in the initial disclosures provided
under section 127(a) of the Truth in Lending Act.
(C) Coordination with other disclosures. The notice required under
subparagraph (A) –
(i) may be included on or with any notice of default, any
billing statement, or any other materials provided to the
customer; and
(ii) must be clear and conspicuous.
_________________________
Opinion expressed are my own and not necessarily those of my employer.

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#2192069 - 09/10/18 08:00 PM Re: Notice of Negative Information Hales53
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,769
Bloomington, IN
We provide the Model Form B-1 as a separate disclosure at all loan closings. We also include its language on our paste due notices but providing it at closing is the only time it is required.

. . . with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2272069 - 06/24/22 02:48 PM Re: Notice of Negative Information Hales53
ml12 Offline
New Poster
Joined: Jan 2016
Posts: 9
In the case of multiple borrowers, are you all providing the "Notice of Negative Information" to each borrower? So does each borrower receive their own copy, or can they both sign one copy and that would suffice?

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#2272070 - 06/24/22 02:53 PM Re: Notice of Negative Information Hales53
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,348
Galveston, TX
If it is on your past due notices, I assume it is addressed to all borrowers. That is all that is required.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2272072 - 06/24/22 03:03 PM Re: Notice of Negative Information rlcarey
ml12 Offline
New Poster
Joined: Jan 2016
Posts: 9
We actually provide it on a separate notice form at closing and have the borrowers sign it. I just wasn't sure if it's okay to have that one form signed or if we had to have each borrower have their own copy at closing.

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