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Penalties for Improper Execution of Right of Rescission

Question: 
I am wondering what the possible penalties to a lender are for non-compliance or improper execution of Right of Rescission.
Answer: 

Answer from Randy: The borrower can rescind the loan for up to three years and return the money they owe you less any interest or other fees they have been charged.

Answer: 

Answer from Andy: There are also the standard penalties your regulator may raise or an attorney representing one or more of your customers.

FIRREA Penalties and
Civil liability:
• Statutory damages double the finance charge (min $100, max $2,000)
• Actual damages
• Fines up to $500,000 or 1% of creditor’s net worth, whichever is less in class action suits
• Attorney’s fees and court costs

First published on BankersOnline.com 7/15/13

First published on 07/15/2013

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