As part of the Loan process, I signed an agreement to pay an application fee of “up to $995” if I withdrew from the loan process before closing. Because I later did withdraw before the loan closing, the broker has been attempting to collect the full $995.00. The Missouri Department of Insurance, Financial Institutions, and Professional Registration stipulates that: “A broker must not require a borrower to pay any fees or charges prior to loan closing.” Is it legal for a broker to charge an application fee when the law says a broker cannot?
Country relating to Question: United States
State (if USA): Missouri
Thank you for the post, I am happy to assist you by answering your questions. No, have you already paid the money?
The money is on deposit.
Thank you, XXXXX XXXXX an unlawful fee and you can file a complaint against the broker in turn. For your reference, here is a link to the complaint form: https://insurance.mo.gov/consumers/complaints/Please let me know if you need additional guidance.
Negotiate, Draft, and Review many complex commercial agreements each year.
Thank you. Both the police and the city prosecutor replied: a) this was not Fraud, not a police matter but a civil matter, and b) "You just don't want to pay the fine!" Therefore I filed complaints with the state Attorney General and the Better Business Bureau. Next I will file a complaint with the Insurance Dept.
Thank you for the follow up, but what fine is involved?
The $995 fine. I should have written fee,
Thank you, XXXXX XXXXX file a complaint with the Dept of Insurance, as well as consider filing a Small Claims action against the broker for the return of your $995. Please let me know if you need additional guidance.
Thank you for your reply. I filed complaints with the Missouri Attorney General, the Department of Insurance & Finance and the Better Business Bureau. On July 22, the broker attempted to collect the $995 fee by submitting the charge to my credit card without my authorization but it was declined. Does that constitute Credit Card Fraud because he tried to collect an illegal application fee?
Yes, but it is attempted credit card fraud as the transaction was declined and as a result you suffered no harm.
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Thank you for your additional replies. I already rated you excellent on July 31and received notice that you were paid. ,
Thank you, have a great day.
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