Deferral feesgreenspun.com : LUSENET : Fair Lending : One Thread
Most every banking in our marketing area, central Indiana, are charging a fee for payment extensions on simple interest loans above the amount of interest charged due to the extended maturity date. Recently I heard that this is in violation of IC24-4.5-3-204, and from what I read I tend to agree. In conversation with our senior lending management, the idea for charging this fee came from a banking periodical. Are we violating Indiana Code by charging a flat fee for payment deferral in addition to the increase in the amount of interest earned?
-- Debra A. clayborn (email@example.com), October 29, 1998