Is it legal for a credit union to change the due date on a home equity loan because of prepayment without notification?

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Is it legal for a credit union to change the due date on a home equity loan because of prepayment without notification?

At this point 54 payments should have been due. Made 59 individual payments in 4 week increments. They advanced the due date according to the payments until a couple of months ago. “Their computer system change and now you can only be paid 60 days in advance”. I was never notified of the change.

Asked on June 18, 2012 under General Practice, Virginia

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Well, a Heloc is different than a traditional mortgage loan. However, you need to review your original contract to see what it states. The loan company cannot place you in a worse position. You need to file a complaint with your bank's regulator. This should help resolve the issue of an accelerated due date.

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