Legal Question in Consumer Law in Texas

mortgage company charge for Biweekly payment

With the advent on online banking, it is very easy for me to set up a biweekly payment of my mortgage. Problem is, my mortgage company ''will not accept partial payments''. They do however have their own Biweekly Payment plan and charge you a one time 375$ fee to enroll, and then a minimal processing fee for each payment. Is this legal?

Mind you, I did not select this mortgage company, as my original mortgage was sold - so I really didn't choose them, or have any choice in their practices.....

Thanks!


Asked on 5/10/05, 4:19 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: mortgage company charge for Biweekly payment

It's perfectly legal, unless your original mortgage allowed partial or bi-weekly payments. Mortgages and other payable instruments are called commercial paper, and are freely bought and sold. The holder of the paper is entitled to payment according to the terms of the paper; they can't change that without the payor's agreement. The payor can't change the terms of payment, either.

What you are asking for is a change of terms.

They say they'll agree, but there will be a charge to change the instrument. All subsequent holders of that paper will be bound by the changes.

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Answered on 5/11/05, 5:43 am


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