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Home > Consumer Information > Personal Finance Topics > Frequently Asked Questions | |||||||||||||||||||||
Personal Finance - Frequently Asked Questions | |||||||||||||||||||||
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1. I need to have a lien release on my property, but the bank/lender is no longer in business. What can I do? | |||||||||||||||||||||
If a lender that is no longer in business placed the lien, you should follow
the above instructions to obtain a lien release through your County Clerk's
Office. |
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2. I am having difficulties with my credit card company. Who can I ask for help or how can I file a complaint against the company? | |||||||||||||||||||||
The Federal Trade Commission (FTC) handles all matters pertaining to credit cards. Please visit its web site for
more information. |
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3. I believe that I have been the victim of identity theft. What should I do? | |||||||||||||||||||||
The Federal Trade Commission (FTC) also handles matters regarding identity theft.
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4. What is a credit report? | |||||||||||||||||||||
Each request for information on your personal credit history is noted on your credit report; this request is called an "Inquiry." Such "Inquiries" typically follow your request for additional credit (e.g., opening an account at a department store or applying for an automobile loan). If the "Inquiry" has been made within the past 90 days, it is noted on the report to the lending entity. The lending entity wants to know the extent of other credit applications you may have outstanding so it can consider the impact of these potential obligations on your loan application. If you find listings on your credit report that you wish to question or contest, you may wish to contact the credit agencies directly. Because these computerized services are fallible, the credit agencies have established mechanisms to handle such problems by having consumers start with a telephone call or letter to the credit agency to request either a copy of their credit report or to reinvestigate or correct the items in question. (More information on correcting credit reports...) It is significant to note that your credit report may not be given to anyone who does not have a legitimate business need for it. Stores to which you are applying for may examine your record; curious neighbors may not. Prospective employers may examine your record with your permission.
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It is recommended that you review your credit report at least once a year to make sure there are no errors or that you have not been made the victim of identity theft. In fact, you are entitled to one free copy of your credit report a year. You can order a credit report through the central site for the three major credit reporting agencies, AnnualCreditReport.com:
Although it is no longer necessary, New Jersey residents may wish to contact each of the
credit reporting agencies directly. (As a New Jersey resident you are entitled to one free copy of each credit reporting
agency's credit report once a year.)
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5. I have an old checking/savings account or CD with a bank that I forgot about and the bank is no longer in existence. How can I get my money? | |||||||||||||||||||||
You can contact the Unclaimed Property Administration by mail, telephone, or by accessing the unclaimed property online search as indicated below:
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6. What is the criminal and civil usury rates in New Jersey? | |||||||||||||||||||||
The civil usury rates are governed by N.J.S.A.
31:1-1 et. Seq. (Title 31 - Interest and Usury). Those loans that fall into
the category of N.J.S.A. 31:1-1(b) are determined the Department of Banking
& Insurance according to the formula set forth therein. However, it should
be noted that federal law preempts State usury law (see Depository Institution
Deregulation and Monetary Control Act "DIDAMCA" - 12 U.S.C. 3803).
As a result, financial institutions may make loans at any rate of interest up
to the criminal usury limits, and other lenders, such as mortgage companies
who are funded by federal programs, also are not subject to the New Jersey caps. |
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7. I have an issue(s) with the way in which a company is trying to collect on a debt. With whom can I file a complaint? | |||||||||||||||||||||
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8. I am having a problem with the company that is servicing my mortgage loan (i.e., the mortgage servicer company to which I send my loan payments). What can I do? | |||||||||||||||||||||
Consumers may file a complaint with the New Jersey Department of Banking and Insurance for investigation of these complaints or, where appropriate, for a referral for handling by another agency. The online complaint form may be found on the Department website. Complaints may also be filed by first class mail. Copies of relevant documents should be mailed to: New Jersey Department of Banking and Insurance Your complaint should include a statement in writing saying that you "authorize the New Jersey Department of Banking and Insurance to obtain my personal financial information from the [named] mortgage servicer company." Consumers with questions may call the Department’s Consumer Hotline at 1-800-446-7467. Please note that filing a complaint with the New Jersey Department of Banking and Insurance does not prevent you from filing a civil action in a court of competent jurisdiction against your mortgage servicer and/or other responsible parties. |
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9. I am currently in default of my mortgage payments and the mortgage company/bank has begun foreclosure proceedings. What can I do? | |||||||||||||||||||||
As a borrower you can request that the institution consider modifying the mortgage loan terms. An example would be the company allowing the borrower to refinance at no or low cost to obtain a lower interest in order to be able to continue making their monthly payments. If you and the institution can not agree on a specific type of loan modification or if your request for forbearance is denied you should immediately contact legal counsel for assistance. When selecting an attorney, be sure to obtain the services of someone who has experience dealing with foreclosure cases and understands your rights pursuant to the Fair Foreclosure Act (NJSA 2A:50-53 et. Seq.) This act states that a creditor must give the debtor thirty (30) days notice before commencing a foreclosure and provide the possible availability of financial assistance by State, Federal or nonprofit organizations. (More information...)
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10. What are the maximum fees a bank can charge for such things as overdrafts, processing, in-sufficient funds, and unavailable funds, etc.? | |||||||||||||||||||||
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11. What should I do if I'm applying for a mortgage loan over the telephone and the representative requests my credit card number in order to charge for an application fee, appraisal fee, or credit report? | |||||||||||||||||||||
If a lender wishes to obtain a credit card number at the time of a telephone application it may do so as long as it does not charge the card until after it receives the signed disclosure. The "application disclosure" should be sent with a corresponding Good Faith Estimate within three (3) business days or prior to closing (whichever is earlier) of the application being taken. If you do not agree to the loan terms noted on the Good Faith Estimate and wish to cancel the application process, do not sign and return the application disclosure. If you do so, you are authorizing the company to collect this fee which may not be refundable if you withdraw your application. If a lender charges your credit card before providing this
disclosure and you subsequently withdraw your application you are entitled to
a refund pursuant to the aforementioned regulation. If the lender does not promptly
credit the subject card or send a reimbursement check you should file for assistance with the Division of Banking.
Once this violation is proven, the broker or banker will be directed to refund
you immediately and be subject to a fine and/or administrative action. |
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12. Is it legal for an institution to charge a New Jersey consumer a prepayment penalty on a loan? | |||||||||||||||||||||
Please be aware that the Alternative Mortgage Transactions Parity Act of 1982, which was enacted by Congress and codified 12 U.S.C. 3801 addresses the issue of prepayment penalties. This act basically notes that mortgage products other than fixed rate fixed term fully amortized conventional loans can include a prepayment penalty. This would cover any type of adjustable rate mortgage ("ARM") or mortgage product with a balloon note ("Balloon") for all mortgage loans that closed prior to July 1, 2003. As federal law preempts New Jersey State law, a prepayment penalty on these types of mortgage loan products would be legal. You should be aware that in order to charge a prepayment penalty on an alternative
type of mortgage (ARM or Balloon) it needs to be disclosed to the borrower on
the Mortgage Note in the section "Borrowers Right to Repay." This
section of the Mortgage Note will explain whether there is or is not a prepayment
and how the amount of the penalty is calculated. The disclosure of a prepayment
penalty can be also found in the Truth-in-Lending statement required by federal
law to be sent to a borrower during the application process. This document will
have a section titled "Prepayment" and indicate whether you may or
will not have to pay a penalty if the loan is paid off early. |
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13. I believe that I am the victim of an advanced fee scam (the advancement of funds for the promise of a loan, lottery winnings, credit card, or other products/services etc.). What can I do? | |||||||||||||||||||||
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14. What is a "subprime loan"? | |||||||||||||||||||||
Please Note: This list is illustrative rather than exhaustive and is not meant to define specific parameters for all subprime borrowers. Additionally, this definition may not match all market or institution specific subprime definitions, but should be viewed as a starting point from which the NJDOBI will expand examination efforts. Get more information on the subprime market. |
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OPRA is a state law that was enacted to give the public greater access to government records maintained by public agencies in New Jersey. |
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State of New Jersey New Jersey Department of Banking and Insurance |