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I took a small loan from my prepaid credit card provider. I forgot that I have to have enough funds on the card by today so the loan money can get deducted automatically. Unfortunately for me this provider always reclaim their money back as soon as it's past 12am, so I woke up to find the balance on my card a negative number. I have loaded the card hours later. Am I liable for a late payment penalty?

Transactions

Here is the agreement I received by email when I applied for the loan.

The agreement

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    Call them, they will know the answer. – quid Jun 20 '17 at 19:17
  • @quid I can even know the answer by simply waiting for few days, but I was wondering if the legal contract states I have to pay a loan by a certain date does it mean 12am or I have till 11:59 pm? – Ulkoma Jun 20 '17 at 19:18
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    No one here will have a copy of your contract and this will vary by lender and possibly by payment type at a single lender. – quid Jun 20 '17 at 19:22
  • Have you blanked out times in that screenshot? That information seems important to me; if they are listed in time order you did load the card. And the negative figures aren't balance but transactions. And "on 20/06/2017" means just that: if you did that, there should be no problem. – Andrew Leach Jun 21 '17 at 0:07
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    I'm voting to close this question as off-topic because it is asking for specific legal/contractual advice. – Joe Jun 21 '17 at 20:52
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As people have pointed out in the comments, this could in theory depend on the terms of your specific contract with this provider. However, in my personal experience most accounts I've had have looked at the balance at the end of the day to decide whether I'm overdrawn or under some limit etc.

Also, I don't think I've ever seen a contract actually specify a time to make a payment, and if yours also doesn't, then I think you can easily claim you made the payment on time given that their own system shows the right date on it.

  • This, and if there is a late payment, it would come from your bank in the form of an overdraft fee, not the lender. I think you're right that no overdraft fee would be applied until the close of the day. – TTT Jun 20 '17 at 23:15
  • @TTT In this case it seems the loan came from a prepaid card company, with payment being taken by charging the prepaid account itself. So I think they are the ones in control of the timing. – GS - Apologise to Monica Jun 20 '17 at 23:38

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