Question: After receiving a bonus, I decided to pay off my home mortgage on the 26th of last month. My lending institution could not tell me how much interest I owned. They had me pay the principal and gave me a receipt. On the 12th of this month I received a check from the bank for the total amount that I had paid, and they informed me that I should compute the interest at $43 a day from the first of the last month until the time I sent them a new check for the total amount. Four days later I received a late-payment charge for not having made my payment on time. Can they do this?
Answer: Yes, they can. But I suggest that you send the original check that they returned to you, along with the interest portions due to the 26th, and tell them to send you a statement for the additional interest owed from that period. This should save you considerable money, and I feel they will have to go along with it, as you have the receipts that you did pay back the principal at that time and that your check was accepted, as they issued you a new check. Hopefully, you have not cashed the check they returned to you.