On Apr 19, 5:58 pm, (Todd H.) wrote:
"123curious" u33499@uwe writes:
A Healthcare Financial Services company is attempting to charge a
"reservicing fee" if a loan with them is paid off early. They are not
allowed to charge a penalty so are calling it a reservicing fee.

1. Is that legal?

What does the loan agreement you signed say? Any mention of this in
its fees and disclosures? Prepayment penalties are horrible for
consumers, but that's not to say they aren't out there unfortunately.

2. Which government agency governs this kind of company?

Depends on the country and state I suppose.

If yer in the US, perhaps a state department of professional services
or whomever grants licenses to loan brokers in the state that company
is incorporated is where you could turn to to file a complaint.

In my state it's the
Department of Financial and Professional Regulation
Division of Banking

where this would probably fall.

--
Todd H. http://toddh.net/


I second the "not many of us know what a healthcare financial services
company is" statement. Saying they are not allowed to charge a pre-
payment penalty implies there is a law in the jurisdiction that
prohibits this. If that is true, then I'd start with whoever
regulates banking in that jurisdiction, as it sounds like trying to do
it by calling it something else is illegal. If you have the law in
hand, the easier and more practical approach would be to just do the
refinance, then sue them in small claims for whatever the penalty is.