Does anyone's CU offer discounts for automatic payments? We offer 0.25% discounts for automatic payments. Here's how our system works: if, based on our risk based lending model, you qualify for a 4.0% loan, the security agreement will be generated with a 4.0% rate on it. Once the loan is booked, the interest rate is decreased to 3.75% to give the discount for automatic payments. If, at any time during the term of the loan, the member decides to stop automatic payments, the discount is removed and the rate is moved back to the original 4.0%. If anyone else does this: 1) what types of disclosures do you include in your security agreement for this? and 2) when do you send a change in terms (if you send them at all in this case)? Your help is greatly appreciated! Thank you!
August 2, 2011 - 3:48pm
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