A borrower files a written complaint with the servicer regarding a fee. When can the borrower sue under RESPA?

The correct answer is that a borrower can sue under RESPA if the complaint is not resolved within 20 days of the filing. This provision is designed to ensure that borrowers have timely protections and that servicers are held accountable for addressing complaints efficiently.

Under the Real Estate Settlement Procedures Act (RESPA), when a borrower submits a written complaint about a servicing issue, the servicer is required to acknowledge the complaint within a certain period and then to respond with either a resolution or an explanation. If the servicer fails to resolve the complaint or provide a satisfactory response within 20 days, the borrower has the right to take legal action.

This timeframe is crucial because it emphasizes the importance of timely resolution to issues that can impact a borrower’s financial situation. Borrowers should be able to rely on prompt attention to their concerns, allowing them meaningful recourse if their issues remain unresolved. The time limits set forth under RESPA are designed to protect consumer rights and ensure that they have access to legal remedies in a reasonable amount of time.