I’m reviewing a consumer vehicle secured loan and the title fee and flood determination fee from a withdrawn HELOC loan request have been added to this loan. I don’t think they should have done this, but what if anything would this be violation of. My first thought was charging fees before the Early Disclosures are given , but because the loan that was withdrawn is a HELOC that wouldn’t apply. Any guidance would be appreciated.
Most note forms contain language that allow the creditor to add certain charges to a loan, after consummation; a typical example would be unpaid premiums due for required property insurance. Check the language of your note form. Determine what charges may be added to the loan under the language of your note. It would be unusual to have language so broad that it allows for unpaid charges related to another loan to be added to the vehicle secured loan.