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Should the interest and principal amounts paid match the prior statement current payment due interest and principal amounts? Seems like it should, however the core is adjusting the interest and principal distribution based on the number of days between payments posted.
Likewise the current payment due will show the interest based on the number of days since the prior payment until the next payment is due. Therefore if the payment is made prior to the due date, extra days interest is shown in this payment to account for those days, reducing the principal.
Wondering if this meets the requirements of 1026.41(d) 2(i) and 3(i).
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Our billing/current payment due shows for example the interest based on whether that month has 30 31 or 28 days and adjusts based on when the prior payment was made. However the next month’s statement that shows the prior month payment amounts going to interest and principal seems to have an interest amount that is different, that is based on the actual # of days since the prior payment and the next payment.
For example the first bill for a loan showed 31 days interest amount in the current payment due section. The first payment was received 5 days early, so the actual amount that went to interest was 26 days, then the next month’s bill was for 36 days. Basically the monthly statement for one month that shows the interest and principal breakdown for the current payment due, does not match how the payments were actually applied to interest and principal on the next monthly statement.
We do not include any odd days interest at the beginning of the loan, if that’s a factor.
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