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Service Charge For Force Placement

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  • #4496
    ScottH
    Participant

    I know the new rule states that a fee for force placement must be bona fide and reasonable. If we charge a service charge for force placement how can we show that it is bona fide and reasonable? More now with the new rules there is more work involved in the process.

    #4499
    rcooper
    Keymaster

    From 1026.37(h)(2):

    Bona fide and reasonable charge. A bona fide and reasonable charge is a charge for a service actually performed that bears a reasonable relationship to the servicer’s cost of providing the service, and is not otherwise prohibited by applicable law.

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