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Problem w/Auto Transfer Instead of Monthly Payment

Answered by: 
Richard Insley | Guru Emeritus

Question: 
I made a term loan (24 monthly payments of a certain dollar amount). The customer asked if he could auto transfer from his ckg acct the amount of $100.00 every two weeks instead of the monthly payment that was on the note. I said yes and then got wrote up on it and had to cancel the auto transfer. Why was I in the wrong? Could I have done the auto transfer, say, a month after the fact?
Answer: 

You were criticized because you didn't service the loan according to terms of the note. Whoever "wrote you up on it" should also be criticized if s/he did not specify what you did that was unacceptable and the authority for the criticism (policy, regulation, state law, etc.)

First published on BankersOnline.com 9/26/11

First published on 09/26/2011

Filed under: 
Lending
Filed under lending as: 
Auto

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