Rights of the Disabled to Remain Silent When Applying For Aid
In November of 2014, CFPB (Consumer Financial Protection Bureau) had to launch a bulletin to take notice and talk about the recent disallowed practice from the lenders. Lenders have been asking disabled buyers questions before offering them the loan that they should not be asking.
And lenders haven’t been told to ask these by law. 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 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 been found out that many banks have gone to the extent of contacting the doctors of the disabled to know about their disability condition and how long it would last for.
It gives rise to some serious concerns about the transaction if lender insists that these questions be answered. The borrower does not have to meet these problems because he’s not required to. 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 disability 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
A case involving a reputable bank doing such an act was recently brought on the scene. The bank had asked similar questions and performed activities that were synonymous to inquiring about the condition of the disability of its customer and getting information on how long it was last for. The bank had asked the borrower whether he will continue to receive his disability income for another three years before offering him refinancing on his mortgage. The bank had also approached the doctor of the borrower to know more 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 to tell the lender that he is receiving disability income and the amount of revenue coming to him. Any questions and inquiries from the lender that go beyond this and strive to get out more information than this are not bound to be answered.
Moreover, the fact that Social Security Administration does not give any written proof to disability income receivers on how long they will receive the income for makes the whole point for lenders to ask for such documents invalid.