Finance Execs Say Fees, Products, Interest Rates Drive Loan Payment Errors
A new Carleton survey of 2,000 U.S. lending, bank, auto finance and fintech professionals finds the majority experience loan payment discrepancies on a weekly or monthly basis and many have serious doubts about the systems they use.
Surveyed executives say miscalculated fees and add-on products (23%), incorrect application of interest rate or APR (23%) and human data entry errors (21%) are the leading contributors to payment discrepancies. Oft-cited daily frustrations include costly compliance errors (26%), time required to finalize deals (25%) and the ongoing complexity of everchanging regulations (19%).
“This survey shines a light on just how much effort lenders continue to put into getting calculations and disclosures right,” writes Tim Yalich, Carleton’s vice president of business development, in a release. “When confidence in systems is low and errors remain frequent, it signals a broader industry problem — one that demands better integration, automation and proactive compliance monitoring.”
