What happens to recurring payments at the end of a loan?

Tips, tricks and solutions for using the AutoPay System with your loans.
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wtech_josh
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What happens to recurring payments at the end of a loan?

Post by wtech_josh » Wed Dec 11, 2019 4:18 pm

In AutoPay, if a loan is closed in Moneylender, it will stop generating recurring payments. If a payment is scheduled within 7 days at the time the loan is marked closed, you will probably need to go to the AutoPay settings on the loan and cancel that payment.

If a borrower chose the recurring payment is Amount Due, the last payment on a loan will be a payoff, and you should end up with a nice zero balance from the last payment.

something to be aware of: if the last payment is a balloon, there's an optional max recurring payment the borrower might set in AutoPay and it might mean the payment through AutoPay is less than the whole balloon amount. If you see balloon payments coming up, it's always a good idea to communicate with the borrower well ahead of time to make sure that the payments are properly arranged or the loan is extended in Moneylender.

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