Does anyone charge a fee to do a loan payment extension, if so, how much do they charge?


A loan extension is our loan set up where we allow someone to skip this month’s payment and put it on the back end of the note. We only collect accrued interest outstanding at time of the set up. I think the Finance Code 342 allows us to collect a fee for set ups on our simple interest loans that have a rate of less than 10%. (this per Sylvia with Compliance Alliance)

We have a skip-a-pay program which we charge $25 each time they would like to skip. We don't collect accrued interest, but we do give them a modified regulation z disclosure informing of them of the all the requirements needed to use the skip and consequences to the loan do to using the skip.

Deferment (extension) fees are state regulated. You need to review your state Statutes (especially since you are in TX) to determine what you can or cannot charge for a payment deferment.