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#142695 - 12/23/03 03:26 PM Instalment Loan Terms

Are there any federal regulations that limit extensions on instalment loans...when a bank offers a "skip a payment" ove the holidays? Also, are there any limits to when the first payment must be made..for example could you offer a loan product without having the first payment due for 2 0r 3 months after the loan date??

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Lending Compliance
#142696 - 12/23/03 04:10 PM Re: Instalment Loan Terms
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,455
Bloomington, IN
The opinions expressed are mine and they are not to be taken as legal advice.

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#142697 - 12/23/03 04:38 PM Re: Instalment Loan Terms
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,007
Toano, VA
There are no federal restrictions about first payment periods. Because extensions can be used to conceal non-performing assets, they should be viewed in light of your regulator's pronouncements on asset classifications and credit administration.
...gone fishing.

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#142698 - 12/23/03 05:43 PM Re: Instalment Loan Terms
Jokerman Offline
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Joined: Nov 2003
Posts: 12,846
Our state limits the number of extensions that a borrower may be assessed a fee for within a year. I do not know of any federal restrictions.

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