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#40603 - 11/04/02 07:57 PM Fees Refundable
D2Xs Offline
Power Poster
D2Xs
Joined: Jan 2002
Posts: 2,706
Does California have a rule where if the customer pays their loan off early we the bank are obligated to refund a portion of the loan processing fees or any fees? If yes, does anyone know the code number where I can find this information?

Thanks
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#40604 - 11/05/02 03:43 PM Re: Fees Refundable
Anonymous
Unregistered

Not aware of, and not a practice I've heard of. Usually your disclosure states (at least ours do), that if you payoff early you are not entitled to a refund of prepaid finance charges or other fees.

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#40605 - 11/20/02 08:53 PM Re: Fees Refundable
Tina A Sweet Offline
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Tina A Sweet
Joined: Aug 2001
Posts: 1,033
Marysville, Ca.
I am not aware of such rulings. We go by the contract.
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#40606 - 12/28/02 02:06 PM Re: Fees Refundable
Ross A Offline
New Poster
Ross A
Joined: Dec 2002
Posts: 20
How about Reg. Z? Doesn't it apply here?
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#40607 - 12/30/02 11:10 PM Re: Fees Refundable
Michelle D Offline
Gold Star
Michelle D
Joined: Oct 2001
Posts: 313
Terminator Country
I haven't heard of that one, but CA has enough crazy rules, let's not give the consumer activists any more ideas.

That being said, I know that if you are OTS - you would be pre-empted and I believe that the National Bank Act would kick in if you are an OCC regulated institution.
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#40608 - 01/06/03 05:02 PM Re: Fees Refundable
SJB Offline
Diamond Poster
SJB
Joined: Jun 2002
Posts: 1,210
California
If you are operating a premium finance agency you can be subject to refund rules under Financial Code section 18634 et seq. or if you are doing precomputed finance charges on conditional sales contracts there can be refunds due pursuant to Civil Code section 2981 et seq. There may be others but I can't think of them right now.

I am not aware of any provision in Reg Z that requires a refund of prepaid finance charges because of an early payoff but Z does require you to disclose if the consumer will get a rebate of any finance charge upon prepayment.
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