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Post by Ton ⓉⓞⓃ on May 27, 2014 16:20:39 GMT
Its worth noting that FK apply late payment fees on every late payment, and its transparent on the payment schedule of each loan, which shows the date it should have arrived, the date it did arrive, and the increased payment due the following time including the late payment fees. Apart from one persistently late payer (Ran**** H**) most seem to learn the lesson pretty quickly. Perhaps andrewholgate could comment as to any disadvantages of such a policy. I can't comment on other platforms. At AC we don't have late payment fees. The reason behind this is we have a default interest rate plus we are a secured lender. If the borrower wants to risk their house by not paying us, then that is a hefty gamble to take. The obvious question now is are Lenders now entitled to such 'default interest' in the late loans. In other words, is there a period of grace or is it at the wise discretion of AC, possibly varying between Borrowers? No doubt default interest isn't charged when the payment date occurs during a weekend/holiday time, Has anyone ever received default interest in the year or so that AC has been in the world?
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Post by andrewholgate on May 29, 2014 22:05:48 GMT
Ok.
our documentation allows for 7 days to make the payment good. We then issue a notice to the borrower and if still not made good, we enact default rates 7 days later. Lenders do get the benefit of most of the default rate although some falls to AC for the extra work required to cover a default.
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mikes1531
Member of DD Central
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Post by mikes1531 on Jul 11, 2014 16:39:37 GMT
I remember the CC Lei***re loan paid a number of days late in the early days & AC intimated they would pursue extra fees, even though they deemed it a waste of time & unnecessary, ans that extra payment never materialised. The odd slightly la te payment might be forgiven, but it might be happening too often if we didn't make an issue of itI note that every payment on this loan has come after the due date. And none of the due dates were at the weekend, so that's no excuse. As I write this, we're still waiting for the payment due on 28/Jun. 
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