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#2216148 - 06/20/19 04:43 PM Late Fees - ACH authorization
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,621
How do others handle.
Our AFT and ACH Authoization Agreements for Preauthorized Loan Payments are silent on late fees. So if a late fee is assessed due to not having enough in the account to handle the payment, that late fees sets there until the end of the loan. Each month we would pull the preauthorized amount and apply to P&I.

Can we pull the late fee under a preauthorization agreement that is silent on late fees?

Is there a better way to handle this? We can change the preauthorization form going forward but of course that doesn't help with previous forms outstatnding.
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Lending Compliance
#2216167 - 06/20/19 07:18 PM Re: Late Fees - ACH authorization Burgess
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
If they are on ACH - how can they have late fees. Almost every bank I know immediately cancels the ACH if one gets returned for NFS.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2216171 - 06/20/19 07:45 PM Re: Late Fees - ACH authorization rlcarey
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,621
insufficient funds first try, later that month they have their account built back up and we continue pulling ACHs
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#2216176 - 06/20/19 08:16 PM Re: Late Fees - ACH authorization Burgess
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
And if they don't - they get whacked multiple NSF charges by their bank and possibly on your side also, if you have returned check charges on your loans.. Great UDAAP fodder.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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