Higher Rate of Interest on CU Loan Arrears ?

[Jonny]

Hi All,

Is it the norm out there for Credits unions to charge a higher rate of intereston loan arrears (in this case a much higher rate) or is it discretionary to the particular CU Tks

 

[Slim]

Hi All,

Is it the norm out there for Credits unions to charge a higher rate of intereston loan arrears (in this case a much higher rate) or is it discretionary to the particular CU Tks

I do not believe it is permitted at all. Interest may accrue on unpaid principal if the monthly payments do not exceed the interest due. Do you think you have been charged penal interest?

 

[Jonny]

Yes Slim, I do. I have not worked it out exactly yet but I know its way above the norm. I will talk to them & report back asap