Vermont Statutes Title 8 Sec. 2922
Terms Used In Vermont Statutes Title 8 Sec. 2922
- Credit bureau: An agency that collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans. Typical clients include banks, mortgage lenders, credit card companies, and other financing companies. (Also commonly referred to as consumer-reporting agency or credit-reporting agency.) Source: OCC
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Loan: means a residential mortgage loan. See
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Servicing: means receiving a scheduled periodic payment from a borrower pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments to the owner of the loan or other third party of principal and interest and other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the servicing loan document or servicing contract. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 2922. Prohibited acts and practices
(a) It is a violation of this chapter for a person to:
(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;
(2) engage in any unfair or deceptive practice toward any person;
(3) obtain property by fraud or misrepresentation;
(4) use any unfair or unconscionable means in servicing a loan;
(5) knowingly misapply or recklessly apply loan payments to the outstanding balance of a loan;
(6) knowingly misapply or recklessly apply payments to escrow accounts;
(7) require the unnecessary forced placement of insurance, when adequate insurance is currently in place;
(8) fail to provide loan payoff information within the time period set forth in 27 V.S.A. § 464;
(9) charge excessive or unreasonable fees to provide loan payoff information;
(10) fail to manage and maintain escrow accounts in accordance with section 10404 of this title;
(11) knowingly or recklessly provide inaccurate information to a credit bureau, thereby harming a consumer’s creditworthiness;
(12) fail to report both the favorable and unfavorable payment history of the consumer to a nationally recognized consumer credit bureau at least annually if the servicer regularly reports information to a credit bureau.;
(13) collect private mortgage insurance beyond the date for which private mortgage insurance is no longer required;
(14) knowingly or recklessly facilitate the illegal foreclosure of real property collateral;
(15) knowingly or recklessly facilitate the illegal repossession of chattel collateral;
(16) fail to respond to consumer complaints in a timely manner;
(17) conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aid and abet any person in the conduct of business under this chapter without a valid license as required under this chapter;
(18) fail to comply with any federal or state law, rule, or other legally binding authority relating to the evaluation of loans for modification purposes or the modification of loans;
(19) fail to comply with this chapter or rules adopted under this chapter, or fail to comply with any orders or directives from the Commissioner, or fail to comply with any other state or federal law, including the rules thereunder, applicable to any business authorized or conducted under this chapter.
(b) A violation of this section is an unfair and deceptive act or practice under 9 V.S.A. § 2453, provided that the Commissioner’s determinations concerning the interpretation and administration of the provisions of this chapter and any rules adopted thereunder shall carry a presumption of validity. Prior to initiating an action for a violation of this chapter, the Attorney General shall consult with the Commissioner regarding the proposed action. (Added 2009, No. 96 (Adj. Sess.), § 1, eff. Jan. 1, 2011.)