We have a customer who is in Florida but getting a basic installment loan with us. The customer has requested that we overnight the documets for signatures, etc... My question is, are we able to charge an overnight delivery fee on this type of transaction?

After doing some research I am wondering if the overnight fee would be considered part of our processing fee. Also, I am wondering if this fee would fall into the tier for nonrefundable prepaid finance charges.

I am just confused on how to look at this.

For $20, which you have already probably wasted more than that in time and resources looking at this, why pass this on to the borrower at all. Just have the bank absorb it, eliminate any risk, and move on. If your margins are so thin that $20 will make or break the deal, then you have loan pricing problems.

Yes, I simply told the lender to eat the fee and move on.

The customer has requested that we overnight the documets for signatures, etc... My question is, are we able to charge an overnight delivery fee on this type of transaction? Also, I am wondering if this fee would fall into the tier for nonrefundable prepaid finance charges.

I'm a little late to the this conversation but if it is a customer request we always get the request in writing and we do charge the overnight fee. We do include it in the prepaid finance charges since the charge is associated with the loan transaction.

Whether you can include it in the non-refundable prepaid finance charges is going to depend on the size of your loan transaction since those charges are tiered based on loan amount; and the contractual language of your loan agreement.