§2922. Prohibited acts and practices

Link to law: http://legislature.vermont.gov/statutes/section/08/085/02922
Published: 2015

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The Vermont Statutes Online



Banking and Insurance






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


(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. §


(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


(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


(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.)