Collections Policy for Personal Loans

1. Governing Law: This collections policy is governed by the laws of the state of South Carolina, specifically referencing the South Carolina Consumer Protection Code and any applicable federal and state laws, including usury laws and the Fair Debt Collection Practices Act (FDCPA). In the event of a dispute, South Carolina law will apply.
2. Payment Terms: As the loan agreement outlines, payments are due on the scheduled date. Borrowers have a 10-day grace period before the account is considered delinquent. Payment options include online transfers, auto-debit, or checks. The grace period begins the day after the due date, and no penalties or fees will be charged during this period.
3. Late Payment Penalties: After the 10-day grace period, the Lender may charge the maximum delinquency charge (or late charge) authorized by law. All penalties comply with South Carolina state usury laws and the South Carolina Consumer Protection Code.
4. Notice of Delinquency: SeaCoast Financial will send notices to borrowers regarding their payment status according to the following schedule:

• • • 5 Days Before Payment Due: Reminder notice sent via email, mail, or text.
    • 24 Hours Before Payment Due: A second reminder notice is sent.
    • Day of Payment Due: Final notice indicating payment is now due.
    • 24 Hours After Payment Due Late fees will accrue if payment is not made within ten days.
    • Ten days After Payment Is Due: Borrowers are notified that late fees are being applied

5. Multiple Missed Payments: If a borrower misses consecutive payments, the late payment penalties will apply as described. Payments will be applied to the oldest unpaid balance first. On the 65th day from the first missed payment, if two payments are missed, a full payment due notice will be sent to the borrower via email, mail, or text. On the 75th day, if the account remains unpaid, it will be turned over to a third-party collections agency.
6. Notice of Distress: Borrowers may submit a Notice of Distress on the 65th day following the first missed payment. This notice allows borrowers to request a case-by-case review for alternative payment arrangements. SeaCoast Financial reserves the right to review these requests and determine appropriate resolutions based on the individual’s circumstances.
7. Right to Cure: Borrowers have a Right to Cure as South Carolina law mandates. After the first notice of delinquency, borrowers will have the right to rectify it before their account is turned over to collections. SeaCoast Financial, LLC will provide at least twenty days for borrowers to bring their account current. If full payment is not received within this period, the account will move to collections on the 75th day after the first missed payment.
8. Collections Process: If the account remains unpaid on the 75th day after the first missed payment, it will be turned over to a third-party collections agency. If applicable, the agency will handle all legal actions, including attorney fees and court filings.
9. Collection Fees: The debtor will be charged any collection fees, including attorney’s fees or other related costs. These fees will be in compliance with South Carolina law and clearly disclosed at the time of delinquency. Fees will be capped as required by state regulations.
10. Credit Reporting: SeaCoast Financial, LLC reserves the right to report delinquent accounts to credit reporting agencies. Borrowers will be notified in writing before their account is reported, and any delinquency will be reported following federal and state laws.
11. Communication Guidelines: SeaCoast Financial, LLC will communicate with borrowers in adherence to the Fair Debt Collection Practices Act (FDCPA) and South Carolina state law. Borrowers will be contacted through their preferred method of communication (email, mail, text) and during appropriate hours. All communication will be respectful and non-harassing, with no more than one contact per day unless additional communication is legally necessary.
12. Dispute Resolution: Borrowers may submit disputes regarding their loan, payment status, or delinquency notices for review by SeaCoast Financial, LLC. If necessary, disputes may be resolved through mediation or arbitration. All disputes should be submitted in writing, and SeaCoast Financial, LLC will review and respond to them within 30 days. Borrowers have the right to request a debt validation notice in writing, and SeaCoast Financial, LLC will provide proof of the loan and payment status upon such requests.
13. Right to Appeal or Contest: Borrowers can contest the debt at any time during collections. Borrowers may request a review of their payment history, loan agreement, or collection activities. SeaCoast Financial will provide all necessary documentation and allow the borrower to dispute the debt in writing. If necessary, a review panel will consider the dispute before further action.