When you receive Notice Of Trustee's Intent To Pay Claims after a customers Chapter 13 has been finalized with a repayment plan, should the servicer change the loan terms and billing to match the repayment plan?
We are dealing with the problem of credit reporting on bankrupt accounts. Our reporting is done at the loan level therefore non bankrupt co-borrowers are affected. Can we just suppress reporting?
When a customer files bankruptcy, can we report the loan as being charge off or does it have to be as bankruptcy?
The Fair Credit Reporting Act requires that each applicant (assuming there is a co-applicant) receive an FCRA adverse action notice in the event of an adverse action. Assume that there is a joint application for an installment loan, not secured by real estate (auto loan for example). The loan is denied because after a review of the credit reports of both applicants, the primary applicant previously filed for bankruptcy and the co-applicant has delinquent obligations with creditors. Should each separate notice provided to the applicant and co-applicant only list the reasons specific to their own credit history? In other words, should the applicant's notice only reference the bankruptcy and the co-applicant's notice only reference the delinquent credit obligations? My reasoning for feeling this way is that 1. it protects the privacy of the applicant and co-applicant and 2. it will better inform the applicant and co-applicant of what specific reasons were used in their denial so that each individual may correct them in order to secure the credit in the future. I understand only one would need an ECOA notice but my concern comes specifically from FCRA notice requirements.
Are fees associated with a bankruptcy filing allowed to be charged back to a customers loan balance after receipt of reaffirmation of the debt?
A HELOC borrower's debts were discharged under bankruptcy without a reaffirmation of our debt being filed. The borrower has agreed to repay our HELOC at a fixed rate and fixed payment. Do I modify the existing HELOC or redocument the loan?
We received a stay letter from our borrower's attorney, and subsequently the notice from the bankruptcy court, informing us of the borrower's decision to file for Chapter 7. For loans, we have a secured consumer loan and an unsecured overdraft line of credit. Since both of these are set up for payments to be deducted automatically (voluntary with the consumer loan but mandatory with the LOC), from the borrower's checking account held with us, are these payments a violation of the stay or can they continue?
One of our mortgage lenders would like to place an ad in the classified portion of the local newspaper. The ad reads: Have you filed bankruptcy or had your home foreclosed on in the past two years? Call [name] to get your credit checked. You may be eligible to purchase a home. Numerous programs available to be a homeowner again. Then she lists her name and cell phone. The bank is not mentioned. Does it need to be? Would this ad be considered compliant? What would make it compliant? Is this a bad idea?
We have a paid off car loan that was part of a bankruptcy. We charged off $1600 of that debt, so can we hold the title as collateral against that amount?