Consumer & Lifestyle · Personal FinancestructuralFintechBillingPricing

Loan Servicers Penalize Early Payments as Extra Instead of Crediting Them

A borrower who paid a loan installment a few days before its due date to ensure it posted on time instead had the servicer treat the early payment as a separate extra payment and attempted to charge the actual due date again. Rigid payment-date logic left the borrower with no way to have an early payment count toward the correct billing cycle, resulting in an attempted double charge.

36mentions
1sources
5.35

Signal

Visibility

5

Leverage

Impact

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