Common use of Payment Processing Fees Clause in Contracts

Payment Processing Fees. a. Servicer shall not charge a borrower for submitting payments more frequently than required by the note or for submitting payments that exceed the current amount due. b. Servicer shall not require a borrower to use any payment method (such as payment by phone) or any provider of payment processing services (payment provider) that would cause the borrower to incur a payment processing fee. This provision does not prohibit Servicer from requiring certified funds from borrowers in foreclosure. c. Servicer shall not unreasonably restrict a borrower from using a particular payment method or payment provider. d. If Servicer promotes, directs, or refers a borrower to a particular payment method or payment provider and the payment method or payment provider would cause the borrower to incur a payment processing fee, Servicer shall, prior to obtaining the approval of a borrower to use the particular payment method or provider, accurately, clearly, and prominently disclose: i. That the borrower is not required to use the particular payment method or payment provider; ii. That Servicer accepts other payment methods which the borrower can use without incurring a fee; iii. That the borrower has the right to select the borrower’s own payment method and provider; and iv. The amount of the payment processing fee. v. That Servicer has a business relationship with the payment provider and that Servicer may receive compensation or other financial benefit as a result of the borrower’s use of the provider’s services. e. Servicer shall disclose and obtain approval from the borrower in accordance with paragraphs V.B.3.d-e, each time Servicer sets up or modifies a payment agreement. Servicer shall document in its records borrowers’ approval each time Servicer sets up or modifies a payment agreement. f. All requests to cancel an existing authorization for the use of a particular payment method or payment provider shall be honored upon the borrower’s first written or oral request. g. Servicer shall not use unfair or deceptive acts or practices to steer borrowers to a particular payment method or payment provider.

Payment Processing Fees. a. Servicer shall not charge a borrower for submitting payments more frequently than required by the note or for submitting payments that exceed the current amount due. b. Servicer shall not require a borrower to use any payment method (such as payment by phone) or any provider of payment processing services (payment provider) that would cause the borrower to incur a payment processing fee. This provision does not prohibit Servicer from requiring certified funds from borrowers in foreclosure. c. Servicer shall not unreasonably restrict a borrower from using a particular payment method or payment provider. d. If Servicer promotes, directs, or refers a borrower to a particular payment method or payment provider and the payment method or payment provider would cause the borrower to incur a payment processing fee, Servicer shall, prior to obtaining the approval of a borrower to use the particular payment method or provider, accurately, clearly, and prominently disclose: i. That the borrower is not required to use the particular payment method or payment provider; ii. That Servicer accepts other payment methods which the borrower can use without incurring a fee; iii. That the borrower has the right to select the borrower’s own payment method and provider; and iv. The amount of the payment processing fee. v. That Servicer has a business relationship with the payment provider and that Servicer may receive compensation or other financial benefit as a result of the borrower’s use of the provider’s services.or e. Servicer shall disclose and obtain approval from the borrower in accordance with paragraphs V.B.3.d-e, each time Servicer sets up or modifies a payment agreement. Servicer shall document in its records borrowers’ approval each time Servicer sets up or modifies a payment agreement. f. All requests to cancel an existing authorization for the use of a particular payment method or payment provider shall be honored upon the borrower’s first written or oral request. g. Servicer shall not use unfair or deceptive acts or practices to steer borrowers to a particular payment method or payment provider.

Payment Processing Fees. a. Servicer shall not charge a borrower for submitting payments more frequently than required by the note or for submitting payments that exceed the current amount due. b. Servicer shall not require a borrower to use any payment method (such as payment by phone) or any provider of payment processing services (payment provider) that would cause the borrower to incur a payment processing fee. This provision does not prohibit Servicer from requiring certified funds from borrowers in foreclosure. c. Servicer shall not unreasonably restrict a borrower from using a particular payment method or payment provider. d. If Servicer promotes, directs, or refers a borrower to a particular payment method or payment provider and the payment method or payment provider would cause the borrower to incur a payment processing fee, Servicer shall, prior to obtaining the approval of a borrower to use the particular payment method or provider, accurately, clearly, and prominently disclose: i. That the borrower is not required to use the particular payment method or payment provider; ii. That Servicer accepts other payment methods which the borrower can use without incurring a fee; iii. That the borrower has the right to select the borrower’s own payment method and provider; and iv. The amount of the payment processing fee. v. e. If Servicer will receive or retain any portion of a payment processing fee, Servicer shall, prior to obtaining the approval of the borrower to use the particular payment provider and in addition to the disclosure required under paragraph VI.A.5.d, accurately, clearly, and prominently disclose: i. That Servicer has a business relationship with the provider of payment provider and that Servicer may receive compensation processing services; and ii. Any financial or other financial benefit as a result which Servicer will obtain if the borrower uses the provider of the borrower’s use of the provider’s payment processing services. e. f. Servicer shall disclose and obtain approval from the borrower in accordance with paragraphs V.B.3.dVI.A.5.d-e, each time Servicer sets a payment agreement is set up or modifies a payment agreement. Servicer shall document in its records borrowers’ approval each time Servicer sets up or modifies a payment agreementmodified. f. g. All requests to modify or cancel an existing authorization for the use of a particular payment method or payment provider shall be honored upon the borrower’s first written or oral requestrequest provided that the request is received at least three business days before the scheduled date of the transfer. Servicer may require a borrower to give written confirmation of a stop-payment required within 14 days of an oral notification. g. h. Servicer shall not use unfair or deceptive acts or practices to steer borrowers to a particular payment method or payment provider. i. Servicer shall document all disclosures made pursuant to this paragraph (VI.A.5) and retain such disclosures in accordance with paragraph X.A.3.