HELOC

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

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

Thank you. But, didn't I post it in the California section?

papagallo

What were the new servicer's comments when you contacted them?

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?

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.

If an institution took adverse action on your equity line they would have been required to notify you.