Posted on: 04th May, 2007 03:16 pm
i was thinking about taking a home equity loan but first would like to know what does the home equity loan consumer protection act covers to be aware of my rights in case some problem arises in future.
Hi Gary,
As per Home Equity Loan Consumer Protection Act or HELCPA;
Niicss
As per Home Equity Loan Consumer Protection Act or HELCPA;
- It is a requirement that lender discloses all the:
- Terms, conditions & rates (payment terms, APRs, miscellaneous charges & details of variable rate features) for HELOC with the applications & before the 1st transaction under the home equity plan.
- In case the disclosed terms change, the consumer can refuse to open the plan.
- Consumer is also entitled to refund of whatever fees he had paid in connection with the application if he refuses to open the plan.
- After the home equity plan is opened, this act limits the circumstances under which it can be terminated or its terms changed by the creditor.
Niicss
As Niicss said in the last point that after opening of the home equity plan, the act limits circumstances under which its terms changed by the creditor.
There was a perception of industry observers that certain features like creditor's right to unilaterally change any term or condition of the plan at any time (which is possible in other types of open-end credit plans) would be unfair to consumer and so this provision was kept in the act.
The disclosures that the lender is required to make help consumers understand all the potential benefits & drawbacks of using this type of loan.
There was a perception of industry observers that certain features like creditor's right to unilaterally change any term or condition of the plan at any time (which is possible in other types of open-end credit plans) would be unfair to consumer and so this provision was kept in the act.
The disclosures that the lender is required to make help consumers understand all the potential benefits & drawbacks of using this type of loan.