I'm reviewing a consumer unsecured loan, and I notice that LaserPro printed a "Critical Warning" pertaining to a late payment fee %. However, when I looked over the note, we are charging a $15 late charge if the payment is more that 11 days late, no other fees are referenced. Can anyone tell me why the "critical warning" is popping up?

Laser Pro will ususally provide the reference (usually your state law) that you can review to determine if your documents are acceptable. It could be the verbiage within the promissory note. Example: A late charge of XX will be incurred if a payment is more than 10 days past due, would trigger this warning.

I agree your "warning" is more than likely triggered by loan doc verbiage, since your late charge fee and # days complies with the UCCC 5-2-203. Is there a chance your loan is precomputed? If yes, check out 5-2-203 and 204.

I'm not sure what "precomputed" means. Everything in the promissory note speaks of only a late fee of $15 when past due more that 11 days. Again, this is an unsecured loan for a term of 6 months. This may not be a BIG deal for this loan, but now I'm afraid of other critical warnings that may be more serious, but yet not accurate.

There is a long and hairy definiton of precomputed in the UCCC 5-2-204. With that said, I doubt very much you're doing them. Dealer loans are sometimes precomputed. In what capacity are you reviewing loan docs, are you in the compliance/audit dept or a lender?