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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My views, not my employer's views.