I used to work at a bank that gave a lower rate for employees. The only paperwork I signed was a note for the lower rate. When I quit, I was given a generic letter that said that if I had any preferred rate loans, the payment would increase. This was last year. This year, I got an email from a friend that works there who said that my payment is going up. It's not a big deal, only 76 cents a week increase, but I was under the impression that as it is now considered a variable rate loan, that I would have to have been given some disclosures at the time of the loan. I don't want the bank to get in any regulatory trouble, so thought I'd ask here.
Yes, you should have received a variable rate loan contract for the rate to increase. You could protest the change and ask them for evidence of a Reg Z (Truth in Lending) disclosure where you agreed to this. The separate employee loan agreement may have acted as an authorization, but there are still disclosure requirements. You'll have to decide if it is worth the hassle.
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Yes, you should have received a variable rate loan contract for the rate to increase. You could protest the change and ask them for evidence of a Reg Z (Truth in Lending) disclosure where you agreed to this. The separate employee loan agreement may have acted as an authorization, but there are still disclosure requirements. You'll have to decide if it is worth the hassle.
