During an examination by the State of SC, we were informed that it is not legal to charge a fax fee for a payoff statement to a customer.

My company's practice has always been to provide a customer with a payoff statement free of charge. Statements are sent via US First Class mail. If however, the borrower or third party(with signed authorization from the borrower) requesting the statement directs the statement to be sent via fax, we will charge a "Special Services" fee of $15. A similar fee is charged in other circumstances where a customer requests copies of loan documents to be faxed, rather than mailed.

This fee is disclosed on the back of the monthly billing statement, in several places on our website, and to the requestor if the request from the customer is verbal.

Can anyone direct me to a SC statute that is relevant to the assessment of a fax fee?

Thank you in advance for your assistance.

jon

You need to ask the examiner to provide you with a reference. I have not heard of any prohibition to charge the fee but then again we don't charge one. Maybe they are looking at the fee as some type of prepayment penalty which is not allowed.