Jan 16, 2019

Rights of the Disabled to Remain Silent When Applying For Aid

Only confidential conversations allowed
Don't speak to anyone but a lawyer

In November of 2014, CFPB (Consumer Financial Protection Bureau) had to launch a bulletin to take notice and talk about the current disallowed practice from the lenders. Lenders have been asking disabled buyers questions before offering them the loan that they should not be asking.

It is quite a common fact that you will have to face a lot of questions, especially those related to your finances, and answer them honestly before you can borrow the loan. Income information is the most important part of this information.

How Does Social Security Law Income Come Into Play?

The case about the income-related questions is a bit different for those who receive social security disability income. An issue that has been recently asked from the borrowers who were on disability is if they know how long their disability income will continue to come.

This is the question that CFPB has explicitly not allowed lenders to ask from their borrowers. In addition to that, it has researchers found that many banks contact the doctors of the disabled to know about their disability condition and how long lasts for.

It gives rise to some serious concerns about the transaction if the lender insists in these questions. Such questions are not permissible. At the same time, the borrower must not bother to arrange for any documents that contain any information about the condition of the disability and how long it will continue for.

In fact, it has been said by the officials from the governing authorities that asking for such documents and information from people with disabilities is straightforward discrimination and against the law. This concern might sound new but has been around for some time.

Example of a Recent Bank Problem.

We see this in a recent example. The bank asked similar questions and activities that were synonymous with asking the terms of disability.

Furthermore, the bank asked the borrower whether he will continue to receive his disability income for another three years. The bank did this before offering him refinancing on his mortgage. In addition, the bank also approached the doctor of the borrower about the status of his disability.

The bank grasped the situation well and ended up settling the matter by offering a significant sum to the plaintiff before entering into lengthy court procedures. A borrower with a disability is only required disclosing he receives disability income. And the victim gets the amount of revenue coming to him. Any questions and inquiries from the lender that go beyond this are not permissible.

Moreover, the fact that the Social Security Administration does not give any written proof to disability income receivers on duration. Disabled lenders beware of such tricks from banks. And if this story sounds familiar, contact a skilled attorney. The Ehline Law Firm APLC is here to help.

Practice Area Information