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Consumers
frequently ask the following questions. Answers
are provided for general information purposes only, and should not
be construed as formal legal advice provided by the Division of Financial
Institutions. You should always consult with your own
attorney regarding your legal rights in any given situation.
General
GENERAL
Q. I just made my last
regular car payment and they say I still owe them
money. Can you audit my account to see if they are right?
A. No. We cannot conduct
special audits of individual transactions or
intervene in disputes of fact between institutions
we regulate and
their customers.
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Q.
A collection agency has been harassing me for payment.
What can I do to stop them?
A.
Debt collection practices are governed by the Fair Debt Collection
Practices Act, which is administered by the Federal Trade Commission.
Sections 1319.12 and 1319.16 of the Ohio Revised Code also address
debt collection practices.
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Q.
I co-signed on a car loan for my son and he is behind
in his payments. Can the lender make me pay?
A.
A co-signer is generally responsible for the repayment of a loan
if the loan is not repaid on time.
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Q.
The lender repossessed my car and sold it for less
than I owed. They say I still owe them the difference.
Is this true?
A.
Yes. You may be responsible for what is commonly called a "deficiency
balance."
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Q .
I paid off my mortgage loan last year and I just
found out the lender did not release my mortgage at the courthouse.
What can I do?
A.
According to Section 5301.36(B) of the Ohio Revised Code, lenders
are required to release mortgage liens no later than 90 days after
payoff or be subject to a $250 civil penalty. We have no jurisdiction
in this matter, so if the lender fails to cooperate, you should
seek the advice of an attorney or take the lender to Small claims
court.
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Q.
My credit report shows an outstanding loan I paid
off months ago. What can I do?
A.
You have protection under the Federal Fair Credit Reporting Act.
If the lender fails to cooperate, you can make an appeal to the
credit bureau. The Federal Trade Commission has jurisdiction over
this matter.
Consumers
can challenge the accuracy of the information in their individual
credit histories by contacting the credit reporting agency. The
three major consumer credit reporting agencies are listed below.
Equifax 1-800-525-6285 Experian (formerly TRW) 1-800-301-7195
Trans Union 1-800-680-7289 The Social Security Administration
also has a fraud line at 1-800-269-0271.
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Q.
I just found an old savings pass book in my late
father’s personal papers, but I never heard of the financial institution.
How can I get the money?
A.
If the deposit was in a state-chartered depository institution,
we can check historical records to help you determine if the institution
still exists, was merged into another institution, or was liquidated.
Please contact Phyllis Humphrey at (614) 644-7533. Descriptions,
telephone numbers, and mailing addresses of regulators for federally
chartered depository institutions can be found in the Consumer
Complaints Section. If the deposit has been inactive for more
than five years, you should contact the Ohio Division of Unclaimed
Funds at (614) 466-4433 or go to
http:www.unclaimedfundstreasurehunt.ohio.gov/
to search the online Treasure Hunt database.
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Q.
I believe the company servicing my automobile lease
has overcharged me. Who do I contact?
A.
If the lease is serviced by a state-chartered or state-licensed
financial institution, the Division may be able to help informally
by referring your complaint, even though we have no specific authority
over auto leases. If the servicer is not a company regulated by
the Division, contact the Consumer Protection Section of the Ohio
Attorney General's office at 614-466-8831.
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Q.
I received a loan solicitation in the mail that
looks like a check. Is this legal? How can I prevent companies from
sending these solicitations to my home?
A.
Loan solicitations of this nature through the mail are legal as
long as the lender is authorized to make loans in Ohio. Not all
of the solicitations that look like checks are negotiable instruments
and the Division receives very few allegations that consumers
have been defrauded by criminals who acquire such solicitations
not intended for them. You may be able to reduce mail and telephone
solicitations by providing your name and/or telephone number to
the associations listed below. They will remove the information
from many, but not all, of the address and telephone number lists
in circulation.
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Direct Marketing Association
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Mail Preference Service
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P.O. Box 9008
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Farmingdale, NY 11735
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Direct Marketing Association
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Telephone Preference Service
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P.O. Box 9104
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Farmingdale, NY 11735
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Q.
Where do I file a complaint about my bank, savings bank, savings
& loan association, or credit union?
A.
If a bank,
savings bank, savings & loan association, or credit union was
chartered by the State of Ohio, the regulation of that financial institution
falls within the jurisdiction of the Department of Commerce, Division
of Financial Institutions (DFI).
DFI
cannot address complaints against national banks, federal savings
banks, federal savings & loan associations, or federal credit
unions. If the financial institution has a national charter, the regulator
will be either the Office of Comptroller of the Currency (banks),
the Office of Thrift Supervision (savings banks or savings & loan
associations), or the National Credit Union Administration (credit
unions).
If
your complaint is with a national bank (has the word
"national" in its name or the letters "N.A." after
the name), please contact:
Customer
Assistance Group
Comptroller
of the Currency
1301
McKinney Street, Suite 3710
Houston,
TX 77010
Telephone:
800-613-6743
Email:
Customer.Assistance@occ.treas.gov
Internet:
www.occ.treas.gov
If
your complaint is with a federal savings bank or federal savings &
loan association (has the word "federal" in its name
or the letters "FSB" after the name), please contact:
Manager
of Consumer Programs
Office
of Thrift Supervision
10
Exchange Place, 18th Floor
Jersey
City, NJ 07302
Telephone:
(201) 413-1000
Email:
consumer.complaints@ots.treas.gov
Internet:
www.ots.treas.gov
To
file a complaint against a federal credit union (has the word "federal"
in its name), contact:
National
Credit Union Administration
1775
Duke Street
Alexandria,
VA 22314-3428
Telephone:
(703) 518-6300
Internet:
www.ncua.gov
Q. What
will DFI do about my complaints?
A.
Upon receipt, DFI will forward the complaint to the financial
institution, and ask them to respond to you within 30 days with a
copy to be forwarded to DFI. If a response is not received within
90 days, then a follow-up letter will be mailed to the financial institution.
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Q. What
if the issue cannot be resolved with the assistance of DFI?
A.
The financial institution will be asked to respond to your
complaint, but DFI cannot guarantee that the response will be to your
satifaction. If you are not satisfied with the financial institution's
response, then you may need to seek legal advice.
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Q. Is
my financial institution obligated to notify me if my account is
overdrawn?
A.
There is no requirement that a financial institution must
notify a customer that the account is overdrawn. You may not
know your account was overdrawn until you receive your monthly statement.
The disclosure agreement will give the obligations of the financial
institution for all areas of the deposit relationship, and the agreement
may be silent with respect to a notification requirement for overdrafts.
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Q. What
is the maximum amount that a financial institution may charge for returned
checks or overdrafts?
A.
Ohio does not have a statute which limits what a financial
institution can charge. Ohio does not have a statute which
limits what a merchant can charge. A fee schedule, provided to the
customer when opening a new accoutn, should specify the amount that
may be charged.
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Q. Can
a financial institution pay checks in any order it chooses?
A.
There are no laws or regulations which govern the order of
payment. Most financial institutions usually clear the larger checks
first on the assumption this could be your mortgage or car payment.
The financial institution's policy is usually stated in a rules and
regulations brochure provided to customers during the opening of a
new account.
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Q. When
does my financial institution have to make the funds I deposit available
for my use?
A. The funds availability notice
must specifically state the availability periods for the various types
of deposits that may be made to consumer accounts. The notice should
be posted in a place where consumers making deposits are likely to see
it before making their deposits, including ATMs. This notice is not
required at drive-through teller windows or at night depository locations.
The federal regulation [Regulation CC (12 CFR 229)] requires that the
notice of funds availability be on the front of all preprinted deposit
slips. The notice only needs to state that deposits may not be available
for immediate withdrawal, and the notice does not have to be included
on counter deposit slips and special deposit slips.
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Q. Can
a financial institution charge a non-account holder a fee to cash a
check that is drawn on another financial institution?
A.
Fees are charged according to language in the deposit agreement between
the financial institution and the account holder that is normally
provided when the account is opened. Ohio does not have a statute
prohibiting a financial institution from charging this fee. The Uniform
Commercial Code allows an agreement between the account holder and
the financial institution in which it can charge the fees deemed necessary
to administer the account.
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Q. Can
I be charged a fee by a merchant to whom I wrote a check if my check
is returned to the merchant by the bank for non-sufficient funds?
A.
Ohio law does not prohibit a merchant/retailer from charging
a fee for returned checks. The bank's fee schedule, provided to the
customer when opening a new account, should specify the amount that
may be charged by the financial institution.
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A. Banks
are prohibited from charging more than 25% annual percentage
rate. Revised Code 1109.20(A) states, "A bank may contract
for and receive interest or finance charges at any rate
or rates agreed upon or consented to by the parties to the
loan contract, extension of credit, or revolving credit
agreement, but not exceeding an annual precentage rate of
25%. In addition, a bank may charge, collect, and receive,
as interest, other fees and charges that are agreed upon
by the bank and the borrower, including, but not limited
to, periodic membership fees, cash advance fees, charges
for exceeding a designated credit limit, charges for late
payments, charges for the return of a dishonored check or
other payment instrument, guarantee fees, origination fees,
processing fees, application fees, and prepayment fees.
Any fees and charges charged, collected, or received by
a bank in accordance with this division shall not be included
in the computation of the annual percentage rate or the
rates of interest or finance charges for purposes of applying
the 25% limitation."
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Q. Is
there a limit on delinquency charges/late fees that can be charged
on loans in the State of Ohio?
A. This is known as
the right to offset. If you have a personal account and a loan
or another deposit account at the same financial institution,
and you are delinquent in your loan payments or the account
is overdrawn, the financial institution generally has a right
to access your personal account without notification to you
to bring the note current or the account positive. This is usually
addressed in the loan agreement and/or depository contract.
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Q. What
should I do if my bank hasn't released my mortgage?
A. Use
the link below on the FDIC's web page to search for inactive
financial institutions. Make sure to denote the institution's
status as inactive.
http://www2.fdic.gov/idasp/main.asp
DFI maintains historical
information for state-chartered banks, savings banks, savings
& laon associations, and credit unions and may be able
to assist you in this regard. Please call (800) 321-3100 and
leave the name and city of the financial isntitution you are
seeking, as well as your name and telephone number so that
we may contact you.
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Q. I
am being contacted by a financial institution for payments on a
loan which is not mine. Is there anything I can do?
A. If
you are not a co-signor or a guarantor on the loan and you
have notified the bank that it is contacting the wrong person,
then you may file a complaint with DFI. If, however, you are
the co-signor, guarantor or surety on the loan, then you are
obligated to pay back the debt along with the primary borrower.
How and when the bank may attempt collection of the debt from
you are are dictated by the terms of the loan contract.
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BANKS
A. No. We have regulatory authority
only over banks and other depository institutions chartered and
located in Ohio. The laws of the state in which the financial institution
is headquartered generally govern credit card interest rates, fees
and service charges. You should contact the Delaware Banking Department.
A. Yes, depending on where the institution
is that the check was drawn on. This is covered under the federal
Expedited Funds Availability Act and Federal Reserve Regulation
CC.
A. First mortgage loans from non-depository
lenders are not regulated at
the state level. Complaints should be addressed to
the Federal Trade
Q. How do I check
to see if my loan officer is licensed?
A. You can check to see if your loan
officer is licensed or veify a license number they gave you by going
to
Q. How can I get a free copy of my
credit report?
A. A recent
amendment to the federal Fair Credit Reporting Act requires each
of the nationwide consumer reporting companies to provide you
with a free copy of your credit report, at your request, once
every 12 months. Go to
Q. How
do I file a complaint?
A. You can file a complaint with the
Division by going to
investigate complaints against companies we regulate.
Q. How do I know
who regulates my lender?
A. This Division regulates state chartered
depository institutions, including banks, credit unions, savings
& loans
associations, and savings banks, domestic and foreign
money transmitters and certain non-depository financial
services, including: check cashers, check cash
lenders, credit
service organizations, mortgage brokers & loan
officers, pawnbrokers, premium finance insurance lenders, precious
Q. How
can I find out if there have been any complaints against my mortgage
broker?
A. Written complaints are considered
investigations into the company's behavior and by law (ORC 1322.061),
complaints
are confidential. However, you can ask if there
has been any
public action taken against the company. You may
also want to
check with the Better Business Bureau to determine
if they
have received any complaints.
Q. My lender has
raised my payments even though I have a fixed rate mortgage. Can they
do this?
A. It is best to check your loan note
to determine under what circumstances the lender can make changes
to your payment.
Many times the change in payment amount when
you are escrowing for your taxes and insurance is due to an increase
in your yearly homeowner's insurance premium or property taxes.
You will want to check with your lender to determine the specific
reason for the increase.
Q. I
received a notice that my insurance has not been paid for this year,
but my lender pays it from my escrow account. Can I just ignore
the notice?
A. Even though your lender is responsible
for paying your premium, you are ultimately responsible for making
sure that you have homeowner's insurance. If your insurance gets
cancelled or the policy expires, the lender may purchase
insurance on the property on your behalf. These
forced placed insurance premiums are usually two to three time what
you
normally pay. If you receive notice that your premium
has not been paid, contact your lender immediately to remedy the
Q. I received
a notice that my property taxes have not been paid, but my lender
pays it from my escrow account. Can I just ignore the notice?
A. Even though your lender is responsible
for paying your property taxes on time, you are ultimately responsible
for making sure that they are paid. If your taxes are not paid,
the county which you live in may consider foreclosing on your property.
If you receive a notice, contact your lender immediately to
remedy the situation.
Q. I decided to
use a different broker, by my old broker wants me to pay for the appraisal
they had completed on my home. Can they
require me to pay for it?
A. The Division encourages borrowers
to shop around for the best possible loan. If you have been working
with a broker, but
decide to go to another company, you are not bound
to use the
first broker's services. However, you may be required
to pay
for any third party fees, such as an appraisal
or credit report,
the mortgage broker company occurred on your behalf.
Check with your broker before you begin working with them to
determine who will be responsible for third party
fees and
always get their response in writing.
Q. How can I prevent
identity theft?
A. You
should be cautious if someone tries to obtain your name, date
of birth, social security number, driver's license number, bank
account number, or credit card information. The Federal Trade
Commission maintains a central web site for information about
identity theft that contains detailed information about
how to protect yourself and what to do if you believe you are
a victim of identity theft. Go to:
Q. Why is there
a delay in processing my Loan Officer application?
A. Although each application has its
own merits, many Loan Officer applicants fail to have their fingerprints
taken, a background check performed by an approved provider, and
the results sent to the Division. The Division will not begin processing
the application until all parts of the application have been submitted.
CREDIT
UNIONS
A. A credit union is a nonprofit
cooperative financial institution
organized and operated for the mutual benefit of
its members. The members are the owners of the institution. The
membership of a credit union is limited to groups having a
common bond of occupation
or association or to groups within
a well-defined neighborhood, community, or rural
district. A person cannot become a member of a credit union unless
he or shee belongs to a group that is within a credit union's field
of membership. The field of membership is specified
in a
credit union's charter or articles of incorporation.
Because credit unions are nonprofit cooperatives, they are exempt
from
from payment of federal
and state income taxes.
A. A corporate credit union
is a credit union whose field of membership consists of other credit
unions. A corporate credit union provides services to credit unions.
There is one corporate credit union in Ohio called Corporate One
Credit Union.
A. The Ohio Credit Union
Act permits state-chartered credit unions to charge a rate not to
exceed a twenty-five percent annual percentage rate.
A. A person can join a credit
union if he or she is a member of a group that is eligible to join
a credit union. A person must also meet other membershiop requirements
of a credit union including the purchase of a qualifying membership
share. The Ohio Credit Union League is a good source of information
about credit unions and what fields of membership they serve.
SAVINGS
& LOANS/SAVINGS BANKS
A. No. Regulations allow liberal
naming conventions for both types of institutions. The only way
to know is to ask the institution.
A. No. The Office of Thrift
Supervision no longer requires that federal thrifts use the word
federal or the designation FSB in their names.
A. Both are considered thrifts,
but they are created and regulated by separate sections of the Ohio
Revised Code. These institutions are similar; however, state-chartered
savings and loans have the Office of Thrift Supervision as their
federal regulator, whereas state-chartered banks have the Federal
Deposit Insurance Corporation as their federal regulator.
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