Consumer Credit Regulation: 5.5.4.5 Effect of Late Posting of Payments
If the lender intentionally delays posting the payments, more interest may accrue over the term of the loan than contracted for or allowed by law. For example, assume a $1,000 simple interest loan made on April 1, with a monthly payment of $86.99 at 8%. See loan in Chart 6, supra. Assume that the lender calculates interest on a 365-day year, so the daily rate is 0.0219%. If the borrower pays the scheduled amount of $86.99 on time each month but the lender fails to post the payment for 15 additional days, the interest charges would look like this: