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#2268666 - 04/05/22 01:06 PM Refunding UCC Fee Not Filed Question
Mountaineers_Fan Offline
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Joined: Jun 2018
Posts: 100
We recently discovered an issue on a portion of our boat loan portfolio. A UCC fee was collected for boats with inboard motors but not required to be filed. We know we need to refund this fee to our impacted customers. However, are we allowed to refund it as a principal payment or are we required to cut a check to the customer?

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Lending Compliance
#2268670 - 04/05/22 01:42 PM Re: Refunding UCC Fee Not Filed Question Mountaineers_Fan
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
There is no regulatory guidance as it is more of a UDAAP issue. The important thing is to make the borrower whole. If they paid cash, a check might be in order. If they financed the fee, a principal reduction might work. Really a business decision.
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#2268737 - 04/06/22 04:22 PM Re: Refunding UCC Fee Not Filed Question Mountaineers_Fan
Mountaineers_Fan Offline
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Joined: Jun 2018
Posts: 100
Thank you Randy. Much appreciated.

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#2268805 - 04/07/22 05:51 PM Re: Refunding UCC Fee Not Filed Question Mountaineers_Fan
fmissle Offline
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Joined: Jul 2007
Posts: 1,016
Pac NW
If it was financed, should the interest accrued on the amount be taken into consideration? It probably wouldn't be much but you probably want to address it.

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