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#492287 - 02/02/06 06:30 AM HELOC
papagallo Offline
New Poster
Joined: Feb 2006
Posts: 4
About a year ago, I opened a HELOC. The institution sold the "servicing" of this loan to another institution. The new institution sent me some checks. When I used one to purchase an automobile, it bounced. Needless to say, I was forced to spend alot more money financing through the dealer. Can anyone point me to the regulations in California and/or Federal that discuss the duties and liabilities of financial instituions when closing accounts. Do they have to notify me? Can they do it unilaterally? Are they responsible for my increased costs? etc..
papagallo

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#492288 - 02/02/06 01:42 PM Re: HELOC
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
HELOC's are regulated by each state - I would recommend posting this question in the CA forum, or perhaps a moderator could move it there for you. Best wishes, Tex
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My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

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#492289 - 02/02/06 02:32 PM Re: HELOC
papagallo Offline
New Poster
Joined: Feb 2006
Posts: 4
Thank you. But, didn't I post it in the California section?

papagallo

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#492290 - 02/02/06 04:14 PM Re: HELOC
Marty McKay Offline
Member
Joined: Oct 2004
Posts: 95
What were the new servicer's comments when you contacted them?

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#492291 - 02/02/06 07:17 PM Re: HELOC
papagallo Offline
New Poster
Joined: Feb 2006
Posts: 4
Marty
When I contacted the the servicer of the loan, they informed me that they had to conduct "research" which has been going on for four days now. I wanted to do the same before I called them back. I wanted to be armed with a little more information about the law other than "what you did was wrong." Can you point me to some statutes or regulations?

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#492292 - 02/07/06 11:03 PM Re: HELOC
Marty McKay Offline
Member
Joined: Oct 2004
Posts: 95
I'm not too involved with HELOC servicing regs but it might be advantageous to avoid trying to go in too many different directions before hearing what the servicer's explanation is. Once they offer an explanation, it might be a lot easier to locate & cite a reg or statute that governs it.

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#492293 - 02/15/06 10:27 PM Re: HELOC
KK Offline
100 Club
KK
Joined: Jan 2002
Posts: 249
Southern California
If an institution took adverse action on your equity line they would have been required to notify you.

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