For those of you in federally chartered credit unions that are involved in indirect lending.............What late fees does your CU charge on indirect? Do you accept the dealer's standard retail installment contract (many state 5% of the payment amount)? Or, do you charge the same late fees that you do on your direct portfolio, if the two methodologies differ? Do you then have the members sign an addendum? At our CU, we charge a $25 minimum late fee or 20% of the interest due (as stated in our bylaws), whichever is greater.........on our direct auto loans. Since we are new to indirect, I was curious as to how other FCUs handle such an issue? The $25 minimum appears to be complicating the situation. Thank you in advance for your responses. Erik Airheart-----Director of Internal Audit-----Jax Federal Credit Union-----[email protected]
November 17, 2011 - 12:00pm
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