Unclear on disclosure-FCPA

[berg043]

What is the name of your state? MI

If a bank changes an interest rate, payment amount, and outstanding balance on a closed end loan, are they required to redisclose the new terms of an agreement in writing?

If the same bank changes the interest rate, payment amount, and account balance, as well as agrees to waive part of the owed late fees, then later account summaries indicate differant amounts then were agreed upon in writing, is there any recourse?

I tried to find answers in previous posts without success. If I missed something please let me know. This is in small claims so I'm not sure I can even obtain the services of an attorney?

Thanks for any help

[Debt Guy]

This is going to be a difficult question to answer without some context. Can you be more descriptive about what is going on?

Generally, the loan agreement defines the responsibility of each party and the powers of each party.

A closed-end loan is one with a definitive end point -- car loans and mortgages are examples.

An open-end loan is one without a definitive end point -- credit cards are examples.

Either type will have an agreement (cardholder agreement, loan agreement) that governs the relationship. So, first thing I would do is find and read your agreement.

As to the waiver of fees and the statement not showing the fee reduction -- well, either it is a processing error or one of the parties was not in agreement with the deal.

If this deal was in writing and you fully performed your obligation, then yes, you have recourse. If the deal was not in writing, well, hard to enforce. If you failed your obligation, then no.

Does all this make sense to you?

[berg043]

Ok-I'll try to keep it brief which will mean not substantiating my claims, but here goes.

My wife and I took out a loan to pay off 2 credit cards about 8 years ago. After paying on it for a couple years, 2 kids came along, sob story, fell behind. I was served notice of being taken to small claims court for balance, got help from parents and paid up. At that time a new payment book was requested because the bank had agreed to work with credit counseling service and lower the interest and payments.

New book was never received (I don't live in that town anymore either). 18 months later receive a letter threatening wage garnishment, possible prison, etc if I don't pay entire balance. Called to make arrangements to pay (I have a steady job now), agreed on a balance that only included half the past due interest and late fees. This was agreed on in writing (via letter). 3 months later a statement is sent that doesn't match what was agreed. More letters are sent and it is re-agreed to the same arrangement. 3 months later again a statement is received that shows something TOTALY differant. I sent a letter letting them know I would do nothing more until they a) corrected the statement to what was agreed or b) a payment arrangement it set up by the court. They are now taking me to small claims (which I'm ok with) for an amount that doesn't match anything ever agreed on, and I can't figure out where they got the dollar amount (which I'm not ok with).

I'm willing to make payments and will make that clear to the judge. I would like to know if these (what I think are) deceptive and dishonest practices should be brought up for consideration. And I'm not sure if these letters serve as proper disclosure for them since the terms aren't laid out in the format specified by law, or if they should have re-disclosed everything when we came to the first adjusted agreement (which would have spared all this time and energy and frustration).

P.S. Jeremiah 10:23

[Debt Guy]

Yes, I think the judge would want to hear your story. What he does with it is not predictable.

Generally, it is not a good idea to stop paying because someone was not responding to your letters. There are other ways to deal with that problem. Once you stop paying, you are putting too much of your fate in their hands.

Now that you are in default -- even though you feel you have a good reason for stopping payments -- the old agreement is probably void. That is not a good thing. In a sense you are going to be looking for the judge to understand your frustration and why you would stop paying.

It is critical that the judge get the picture.

Your story was a little convoluted and difficult for me to follow. I would encourage you to write the story down, step by step. Then work on making the story short and to the point. Practice it in front of the mirror until you can tell the story without backtracking or stumbling.

Take all your documents with you. Have copies made for the judge and for opposing counsel.