While reviweing an auto loan that just closed, realized that there is a mistake on payment schedule calculation (TIL). What is the % tolerance?
Thanks

See 226.22 for a full description. APR tolerance is usually 1/8 percent unless the payments are irregular then 1/4%.

There is no TIL "tolerance" for the payment schedule disclosure.

Does your auto loan note form provide two places to state the payment schedule (one in the promissory note portion of the document and another in the Fed Box)? What you do next depends on your answer.

If there's a separate place for the payment schedule in the note and it's recorded correctly in this part of the form, then the erroneous presentation of the payment schedule in the Fed Box is a technical violation. The TOP, FC, and APR should be verified using the (correct) schedule in the note.

If there's only one place for the payment schedule (in the Fed Box) and the promissory note simply refers to it, then you have an error in the contract. If the error results in the customer promising to pay less than you intended, then you have little choice but to eat the loss and service the payment schedule you printed in error. If the error would cause the borrower to pay more than intended, then you should notify the borrower that there is a contractual error and that you are reducing the payments to the amount consistent with your agreement to lend. Whichever way the error is resolved, you must use the contracted payment schedule to perform your TOP, FC, and APR verification.

Most importantly--get to the bottom of the software or procedural error that caused this problem and fix it ASAP. You don't want this problem to grow any bigger. Error correction is expensive and time consuming.