TRUTH IN LENDING ACT

[steck]

I have a question concerning the Federal Truth In lending Act. I am involved in a dispute with a lender whom, I believe, has committed violations of said act.

It is my understanding that if a debtor sends a letter to his creditor disputing all or part of his balance, the creditor must acknowledge receipt of his letter in writing within a certain time period—I think 30 days—and must follow-up with a detailed explanation of why the creditor believes the balance is correct, citing law or statute when/if applicable within another time period—I think 90 days. Simply put: He cannot answer, “you are wrong—you owe me the money.” Rather, he must answer, “You owe me the money, and here’s why….”

Also, it is my understanding that between the time the debtor’s dispute is received by the creditor and the time the debtor receives the creditor’s specific reply, the creditor cannot impose interest or late charges on the amount in dispute, nor can he report the account as delinquent to credit reporting agencies.

In my case, I sent my dispute letter in March’2000. I received an acknowledgement of that letter in June’2000, and in November’ 2000, I received a detailed written explanation of the creditor’s position including a cite from the Uniform Consumer Credit Code, along with a payoff demand which included interest and late charges from April through November’ 2000.

My question for you is: A. Am I correct in my assumptions and if not can you enlighten me? B. Do I have a cause of action vs. my creditor?

Thanks for your reply. Great service you have here!

STECK

PS—I reside in the state of Marykand

 

[I AM ALWAYS LIABLE]

I have a question concerning the Federal Truth In lending Act. I am involved in a dispute with a lender whom, I believe, has committed violations of said act.

It is my understanding that if a debtor sends a letter to his creditor disputing all or part of his balance, the creditor must acknowledge receipt of his letter in writing within a certain time period—I think 30 days—and must follow-up with a detailed explanation of why the creditor believes the balance is correct, citing law or statute when/if applicable within another time period—I think 90 days. Simply put: He cannot answer, “you are wrong—you owe me the money.” Rather, he must answer, “You owe me the money, and here’s why….”

Also, it is my understanding that between the time the debtor’s dispute is received by the creditor and the time the debtor receives the creditor’s specific reply, the creditor cannot impose interest or late charges on the amount in dispute, nor can he report the account as delinquent to credit reporting agencies.

In my case, I sent my dispute letter in March’2000. I received an acknowledgement of that letter in June’2000, and in November’ 2000, I received a detailed written explanation of the creditor’s position including a cite from the Uniform Consumer Credit Code, along with a payoff demand which included interest and late charges from April through November’ 2000.

My question for you is: A. Am I correct in my assumptions and if not can you enlighten me? B. Do I have a cause of action vs. my creditor?

Thanks for your reply. Great service you have here!

STECK

PS—I reside in the state of Marykand

My response:

In your contract, did you agree to a particular State jurisdiction other than Maryland? If so, what State?

Could you possibly be confusing your rights under that Act with the Federal Fair Debt Collection Practices Act?

Please get back to me with these answers, and also review the Federal Fair Debt Collection Practices Act.

IAAL

 

[steck]

Thanks for your reply:

My creditor is COUNTRYWIDE HOME LOANS a division of Countrywide Credit Industries’ Inc located in the state of California. They are holder-in-due-course having obtained my note from FIRSTPLUS FINANCIAL’ INC—A Texas Corp. I’m not sure as to the “jurisdiction.”

I’m pretty sure that the responsibilities and rights I mentioned are enumerated in the FLILA but I might be wrong—I’m not a lawyer, after all!

Be it as it may, if it is the Federal Fair Debt Collection Practices Act that controls, do I have a cause of action under that law?

Thanks again,

STECK

 

[I AM ALWAYS LIABLE]

My response:

Thanks for getting back to me. So that we can discuss this better, I really need you to read the Federal Fair Debt Collection Practices Act - - please put that Act in your search engine, and you'll find it. That way, we'll be on the same page in our discussion and dialog, and we won't be going back and forth so much. Also, you'll be able to see first-hand your rights, their rights, your responsibilities, and their liabilities to you.

Thank you.

IAAL

 

[steck]

I read the Federal Fair Debt Collection Practices Act but I could find no reference to the creditor’s obligation of a timely response nor penalties for failure thereof, nor of waiver of interest and late charges during the dispute period.

This is the closest match I could find:

ß 809. Validation of debts [15 USC 1692g]

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

I still think the language is in the FTILA. I have been unable to find a copy of that act on the Internet. Perhaps you could help me there.

STECK!