Consumer & Lifestyle · Personal FinancestructuralFintechBillingB2CPayments

Banks holding loan payoff overpayments for weeks while customer accrues late fees

When consumers overpay a loan at payoff, the surplus sits in limbo for up to a month before being refunded. During that period, the customer continues accruing late fees on other accounts that the trapped overpayment could have covered. There is no self-service way to request urgent release of the overpaid funds.

1mentions
1sources
5.05

Signal

Visibility

4

Leverage

Impact

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