Fourth Circuit: Michelle Williams v. Lendmark Financial Services

Statutory Construction


Under state law, lender's policy of first applying payments to late fees is permissible, as the terms simply require that a fix sum be periodically paid, and provide for an extension of the loan where the balance isn't retired.

Lender could not, however, consider a payment incomplete where it didn't cover both the principal due and additional fees.

Close of business was fair cutoff, as terms required payment a set number of days from the initial cutoff time.



Michelle Williams v. Lendmark Financial Services