Now that the DFI says its ok to charge a fee to skip a payment, are their any Indiana banks out there that are doing this? I am interested in what your agreement states regarding the fee.
Thanks.

Go Bears!

Can you direct me to what you are referring to? I must have missed something. To the best of my knowledge you have always been allowed to collect a deferment fee subject to conditions and disclosure requirements of the IN Code.

Dan,

We were cited in 97 by the DFI for violating IC24-4.5-3-204 with a heading "Deferral Charges Disallowed on Simple Interest Accounts". At the time, DFI said unless the transaction is precomputed, no seperate charge is permitted to be imposed under IC 24-4.5-3-204. According to an article in this months IBA magazine, it is now allowed with conditions such as APR being 18% or less, loan term can't e more than 84 months closed end, fee can't be mire than $25, simple interest loans only, etc.