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#2237596 - 06/04/20 08:42 PM Post charge-off payment attempts
AndyCompliance Offline
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Joined: May 2018
Posts: 19
The majority of our loans are setup on recurring ACH debits. Management wants to extend the time we attempt to debit a borrower's account beyond our normal charge-off time (i.e. we CO loans at 90 days past due, and management wants to keep attempting scheduled payment debits until 120 days).

I don't see anything that prohibits this within Reg. E or NACHA, but we are concerned about contract implications.

Does anyone have experience with anything similar?

Thanks!

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Lending Compliance
#2237602 - 06/04/20 09:04 PM Re: Post charge-off payment attempts AndyCompliance
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,236
Galveston, TX
Are they assessed any additional fees when there is no money in the asset account?
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#2237603 - 06/04/20 09:05 PM Re: Post charge-off payment attempts rlcarey
AndyCompliance Offline
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Joined: May 2018
Posts: 19
No. There are no fees assessed, and the payment attempts are for the agreed upon amounts per the original authorization.

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#2237607 - 06/04/20 10:51 PM Re: Post charge-off payment attempts AndyCompliance
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,236
Galveston, TX
Then I see no harm if there no NSF fee on the consumer's checking/asset account or return check fees on the loan . You charging off the loan is just an accounting function on your end. It does not impact the consumer's legal obligation tp you to pay the loan. They of course can always cancel their authorization..
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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