Not sure if this is the right spot for this topic. At several different institutions I have worked at, we have always had a "payoff threshold". That is if the payoff funds were short by $9.99 or less we would payoff the loan and discharge. On the other hand, if the funds were over by $9.99 or less, we wouldn't refund the surplus.
In the past (20 years ago) we had a threshold of $5. The logic behind that number was the cost of producing a check was $5.
Is there any regulation out there regarding this? Does this fall under best practices or bank policy?
Thanks for your help. Does anyone else have a threshold on payoff funds?