charging a pay-off penalty when paying off a loan
 

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?

2. Which government agency governs this kind of company?

charging a pay-off penalty when paying off a loan
 

"123curious" u33499@uwe wrote in message news:70f4271e660da@uwe...

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?

2. Which government agency governs this kind of company?

Not many of us know what a "Healthcare Financial Services
company" might be. Is it an outfit that lends money to pay
only medical bills?

--
Don Phillipson
Carlsbad Springs
(Ottawa, Canada)

charging a pay-off penalty when paying off a loan
 

"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/

charging a pay-off penalty when paying off a loan
 

Don Phillipson wrote:
A Healthcare Financial Services company is attempting to charge a
"reservicing fee" if a loan with them is paid off early. They are not
[quoted text clipped - 3 lines]

2. Which government agency governs this kind of company?

Not many of us know what a "Healthcare Financial Services
company" might be. Is it an outfit that lends money to pay
only medical bills?

It is a company that buys large loans given to beginning physicians and
dentists when they have to put out mega$$$ for equipment.

charging a pay-off penalty when paying off a loan
 

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.

charging a pay-off penalty when paying off a loan
 

The crucial question is whether it's in the loan agreement or whether it's
something they invented after the fact. This is why one should read the
papers one is signing.

charging a pay-off penalty when paying off a loan
 

On Apr 19, 7:28 pm, "mc" wrote:
The crucial question is whether it's in the loan agreement or whether it's
something they invented after the fact. This is why one should read the
papers one is signing.

What's in the loan agreement isn't going to overide a law that says
they can't charge a pre-payment penalty.

charging a pay-off penalty when paying off a loan
 

wrote in message
ps.com...
On Apr 19, 7:28 pm, "mc" wrote:
The crucial question is whether it's in the loan agreement or whether
it's
something they invented after the fact. This is why one should read the
papers one is signing.

What's in the loan agreement isn't going to overide a law that says
they can't charge a pre-payment penalty.

But is there such a law?

charging a pay-off penalty when paying off a loan
 

wrote in message
ps.com...

What's in the loan agreement isn't going to overide a law that says
they can't charge a pre-payment penalty.

Why do you suppose this true, if two parties agree in
writing on any contract specifying a prepayment penalty?

--
Don Phillipson
Carlsbad Springs
(Ottawa, Canada)

charging a pay-off penalty when paying off a loan
 

In article ,
What's in the loan agreement isn't going to overide a law that says
they can't charge a pre-payment penalty.

Why do you suppose this true, if two parties agree in
writing on any contract specifying a prepayment penalty?

Contract terms contrary to law are void.

--
--Tim Smith

charging a pay-off penalty when paying off a loan
 

Thu, 19 Apr 2007 21:18:18 GMT from 123curious u33499@uwe:
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 say?

If it's not in the loan agreement, it's not legal. If it *is* in the
loan agreement, it may or may not be.,

2. Which government agency governs this kind of company?

Start with your state consumer protection office or your state
attorney general's office.

--
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com/

charging a pay-off penalty when paying off a loan
 

Fri, 20 Apr 2007 09:30:57 -0400 from Don Phillipson
:
wrote in message
ps.com...

What's in the loan agreement isn't going to overide a law that says
they can't charge a pre-payment penalty.

Why do you suppose this true, if two parties agree in
writing on any contract specifying a prepayment penalty?

Because in law there are certain things that *cannot* be contracted
away. One example (in many states) is your right to sue over gross
negligence. Courts have held that you can contract away your right to
sue over ordinary negligence, but not gross negligence.

I'm no lawyer, so I can't tell you where one leaves off and the other
begins. Check the archives of misc.legal.moderated for more.

Another example: in New York State, certain lease provisions are void
as a matter of law. I can't remember off hand what they are, but I
remember a landlord-tenant info session in 2005 by an assistant
attorney general that made that point: there are certain rights that
a tenant cannot lose, regardless of what the lease may say.

--
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com/