If you are a bank lender or a private money lender, what is your policy for getting payment information to your borrowers? Thereâ€™s a new private money lender here in town, and they are a small fish in a really big pond of private money lending. They are doing their own loan servicing too, and have as a company policy NOT to send out payment information via regular mail. They only send out notices and payment information via Email. Now I understand wanting to run an efficient business and use technology to save paper and stamps, but give me a break. In fact, I called this lender yesterday to let them know that one of their borrowers had not received their payment coupons. They immediately informed me that they only send payment info via email and refuse to use snail mail. â€œThis is strict company policy,â€ the administrator told me.
â€œBut what if they donâ€™t use email?â€ I asked her. The first question I asked myself is, â€œWhat planet are these private lenders living on?â€ They are the new guy in town and are completely new to private money lending but they want the world to bend to their way of doing business. This borrower is a 65 year old retiree who is used to doing everything via snail mail. He has an email address, but rarely checks it, and certainly doesnâ€™t use it for day-to-day business communications. This lender then slapped this borrower with a pretty hefty late fee for not making the payment on time, even though he said he never received the payment information.
If you are a bank lender or a private money lender, what is your policy for getting payment information to your borrowers? Do you send it BOTH via snail mail and via Email? Not sure what is required but this seems like a pretty bogus policy, particularly when dealing with baby boomer borrowers that are accustomed to doing business via snail mail and not Email. What is your opinion on this topic?
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