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#2231704 - 02/26/20 01:16 AM Loan

My bank wants to add an app that when a customer calls in to make a payment with a credit card our employee can go to the Website application to key in the necessary debit or credit card information to make the loan payment.
Problem... the payment will not post until the following day. Isn't that a servicing problem if it is a home loan payment? Under the servicing rule doesn't the payment have to post the same day? It may be different if the customer goes to the website to post the payment but I think if they call the bank it? This is a way to help our tellers from having to take credit card loan payments over the phone.

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#2231710 - 02/26/20 05:56 AM Re: Loan Anonymous
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,097
Toano, VA
Long, long ago when I was a commercial bank examiner, I seem to remember criticizing the practice of allowing borrowers to make payments on one credit with advances from another credit--especially an unsecured credit card. Do the regulators still frown on this as a hazardous lending practice?
...gone fishing.

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#2231711 - 02/26/20 11:59 AM Re: Loan Richard Insley

Yes, I think you are correct on that issue...

Most of the payments we take over the phone are debit cards from their checking account at another bank.
My main concern is if we take it over the phone and it is not posted until the next business day which I believe the servicing rule says you must post a house payment the day the transaction is made. Or we would have to reimburse them the late fee and make sure the information wouldn't be sent to credit bureau if it created an over 30 day issue.

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#2231717 - 02/26/20 01:25 PM Re: Loan Anonymous
rlcarey Online
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Joined: Jul 2001
Posts: 80,341
Galveston, TX
And maybe Brian can address the latest, but if you are taking credit cards for loan payments, there used to be some hoops you had to jump through.

I agree on the posting. You post a payment made by check on the day it is received and you will not collect the funds until a day later. Why would you treat a debit card payment differently from a posting standpoint?
The opinions expressed here should not be construed to be those of my employer:

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#2231837 - 02/26/20 11:04 PM Re: Loan Richard Insley
TomS Offline
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Joined: Jan 2004
Posts: 315
As far as the regulators are concerned, the bank I recently left has been taking credit card loan payments for a number of years, and the regulators never said anything about it to my knowledge.

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