I recently paid off a home equity line of credit loan. However, the amount I paid was $1,500 too much, and left me with a credit balance. My bank is keeping this money for 30 days before releasing the funds to ensure that all fees and interest are paid. Can they keep the money for this long?
That will depend on how you ask for your refund. There is a provision in the federal Truth in Lending regulation -- Section 226.11 of Regulation Z -- that requires a lender to refund an overpayment on open end lines of credit within seven business days after receiving the borrower's written request.
Put your request in writing, and include wording like "This is my request under section 226.11 of Regulation Z, that you refund the overpayment in my home equity line of credit account number [insert account number]." Then tell the bank how you want the refund -- a credit to your depositaccount with them, or a check. If it's a check, and you'd rather pick it up than wait for the mail, specify which branch office you'll visit. If you live nearby, take your request and a copy to the bank and ask that a representative sign and date their acknowledgment of receipt on your copy.
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That will depend on how you ask for your refund. There is a provision in the federal Truth in Lending regulation -- Section 226.11 of Regulation Z -- that requires a lender to refund an overpayment on open end lines of credit within seven business days after receiving the borrower's written request. 