Calculating Reimbursements (For NonAuthorized Credit Life Insurance)

Answered by:

Question:

I have recently discovered that on a few of our consumer real estate loans that have credit life we did not obtain the customers authorization. I was needing help on caluculating the reimbursement amount. Were would I find the guidlines for such reimbursements?

Answer:

Look to the "FDICCEM Appendix E Truth In Lending Reimbursement" for regulatory information. In the Federal Reserve Regulatory Service, look at 61160 "Joint Policy Statement on Administrative Enforcement of the Truth in Lending Act Restitution". This is affectionately referred to as the "Policy Statement" and is the guide.

ABA Compliance Magazine articles with practical information include:
"Truth in Lending Adjustment Calculations, Alan J. Dombrow, April/Spring 1991, p. 31."

"Truth in Lending Error Resolution Procedures, Robert P. Chamness and Alan J. Dombrow, Jan/Feb 2000, p. 25."

"Finance Charge Tolerances After the Truth in Lending Act Amendments of 1995, Alan Dombrow and Walter E. Zalenski, May/June 1996, p. 40."

"Curing Truth in Lending Violations, D. Edwin Schmelzer and Walter E. Zalenski, January/Winter 1989, p. 13."

First published on BankersOnline.com 12/3/01