Credit Report Fee

Question:

When ordering credit reports for applicants, we have a range of prices from our vendor depending on what is on the report. To simplify collection of this fee, could we charge a flat rate to all applicants? Will this trigger any additional requirements since we may be charging more than the actual cost?

Answer:

If the application is covered by RESPA, the answer to charging a flat fee that exceeds the actual cost is a big resounding NO!! In their response to the Massachusetts' Bankers Association, HUD stated "Section 8 of RESPA prohibits anyone from collecting any fee or portion thereof, unless it is for goods delivered or services actually rendered."

First published on BankersOnline.com 3/12/07