Hello,

We had a error with our statement vendor that was identified this past month where folks being assessed a late fee (legitimately) on their loans were not showing on their statements. They showed correctly on our core system but it was not translating over. We have solved the problem with the vendor but it appears this may go back a few months.

Would anyone know if there is any course of action to take with past statements that were affected? This isn't an adverse effect on the customer.

Thanks in advance,

This isn't an adverse effect on the customer.


How is sending consumers a loan statement that doesn't include a late charge and then trying to assess the fee at a later date "not" adverse to the customer?

I too would consider this adverse to the customer. They don't log onto your core.

Be careful, if your system considers the late charge (the one that the bank did not notify the customer that it had assessed) in calculating the payment, and the bank does not consider the payments received are "in full", it may have a pyramiding issue, and at least a possible violation of state law and/or UDPAA,

I would consider these best to be absorbed by the bank and potentially a claim to the vendor under their reps and warranties provision.

I forgot a piece in my explanation. We do send out fee notification letter when a fee is being assessed. So the customer was notified in writing of the fee and why it was being assessed but it never translated over to their statement.

And there is the rub. If you are going to mail statements to customer when they are not required, you need them to be correct or you are going to face a potential UDAAP finding by the regulators.

I am not sure if I was clear because that doesn't make sense.

The monthly statement (requirement per reg) was the one that was incorrect due to the statement vendor not mapping over the late fee and as a result not displaying on their statement.

We generate our own deliquency notices in-house that we send to the customer notifying them of a late fee being assessed. This notice was correct. I'm aware that the monthly statement was incorrect but the member was aware of the assessment as a result of the deliquency notice informing them of the fee. We have identified the issue and it has been corrected and worked out with the customer.

I am thinking the best practice be to identfy the group of accounts involved and reissue statements with the fee displayed. Any thoughts?

Are you talking about statements on a HELOC or other open-end credit? If so, the statement sent to the customer is the official record of account. You have been perfectly clear and I think we have to. You leave fees off of the statements and you want to collect them at a later date, IMHO you are setting yourself up for a UDAAP finding regardless of what other communication (not regulatory related) you may have sent them.

Auto Loans.

The monthly statement (requirement per reg) was the one that was incorrect

What statements are required on a auto loan. Is this a State law issue??

That would be my mistake on the "requirement per reg" as our issue is on closed-end. One of those things most folks still provide as a courtesy.

Thanks for the help and awareness.