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#81350 - 05/19/03 07:12 PM Loan payoffs overpayment & reimbursements
Love those Regs Offline
Gold Star
Joined: Apr 2002
Posts: 293
Southern State
My bank is wanting to set a dollar limit on reimbursements for loan payoff overpayments. For example, a customer pays off two days earlier than was calculated in the payoff quote and we now have $4 too much - is it worth the effort and cost of a cashiers check to reimburse the customer or should we just keep the difference? We are interested in knowing what dollar limit, if any, other banks use. Also, are there any regulatory issues with us keeping any overpayment?
Opinions are mine and subject to change frequently

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Lending Compliance
#81351 - 05/19/03 07:15 PM Re: Loan payoffs overpayment & reimbursements

If it's $1.00 or greater the customer gets it. .99 & under we keep.

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#81352 - 05/19/03 07:58 PM Re: Loan payoffs overpayment & reimbursements
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
It's a really sad state of affairs. Check Reg Z, 226.11 for open-end and 226.21 for closed-end transactions. You'll find that the limit is $1.00.

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