Over the past couple months, I’ve posted quite a bit about Regulation Z and home equity lender’s responsibilities. HELOC lenders can freeze clients’ credit lines. But, they cannot do so without proper legal cause.

The Washington Post recently reports:

“This summer, both the Federal Deposit Insurance Corp. and the Office of Thrift Supervision issued guidance to the institutions they oversee to remind them that when they change these credit lines, they have to follow the laws. Among the federal laws that protect consumers in these situations are the federal Truth in Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act and the Federal Trade Commission Act.”

If your home equity line of credit has been frozen, make sure you know the law. Freezes done without proper cause may be reversed.

See Also:

How Regulation Z Affects Home Equity Line of Credit Borrowers

FDIC Warns Lenders on Freezing HELOCs

Office of Thrift Supervision Warns HELOC Freeze Lenders

Tags | FDIC, Heloc, heloc freeze, home equity line of credit, mortgage crisis, Truth in Lending Act