Good morning! I have never heard of this...

What is the minimum amount of a loan payment that is acceptable in order for the next due date to kick in or for the payment to be acceptable? Loan ops is saying they have heard of a percentage of 99%. Have any of you heard of this???

Thanks!

I've seen where it was considered a full payment of the amount was within $5 of the accumulated payment amount. Translation - if the customer had a $100 payment and they paid $95, it would carry the due date to the next month. If they did it again however it would not, as they were $5. short from the first month and another $5 short from the 2nd month.

The reason was to prevent the customer being punished if [for example] they had a $200.38 payment and sent in a check for $200.00.

This is a bank policy question, because where I'm at even if you are 1 penny short, that one penny shows a late balance and if it runs past 10 days I have seen it charge a $10 late charge fee. It sounds crazy I never thought it could happen, until I seen it with my own eyes.

Our system is set to accept 95% of consumer loan payments and 99% of commercial loan payments.

hmm, interesting question. Now I want to find out how it works here...

Thanks! I had begun to think that since I had not ever heard of it:0 - that it might have been a bank policy only. Thank you!

Thanks!

Partial Payments on Open-and Closed-End Credit

Institutions should use one of two methods to recognize partial
payments. A payment equivalent to 90 percent or more of the contractual payment may be considered a full payment in computing past due status.

Alternatively, the institution may aggregate payments and give credit for any partial payment received. For example, if a regular installment payment is $300 and the borrower makes payments of only $150 per month for a six-month period, the loan would be $900 ($150 shortage times six payments), or three full months past due. An institution may use either or both methods in its portfolio, but may not use both methods simultaneously with a single loan.

Uniform Retail Credit Classification and Account Management
Policy
http://www.occ.gov/ftp/regs/2000-20a.txt

When setting your delinquency trigger points, you must also consider the Reg AA prohibition of "pyramiding late charges." Make sure your system doesn't deduct unpaid late charges attributable to earlier payments before it makes a decision to impose another late charge.