4 ms·

Right, this exception seems predatory; and I think it should only apply if a loan is delinquent. That seems to be the intention of the law, but it's probably br

• PeterisP 6y ago
  It's worth noting that in many (perhaps most?) cases of such payments "creditor" does not imply a loan, but rather debt caused by unpaid obligations for goods or services - e.g. there's a shipment of coal or iPhones and there's an invoice that's due to be paid by date X, and it gets paid on date Y. In many cases Y<X - perhaps there's some discount or other negotiations involved, perhaps some people or companies don't leave payment to the absolute last day. This clause means that if someone is paid for their goods or services, the debtor can't come back afterwards and say "ahhh, this was a mistake, give us back our money, we weren't delinquent and still had 20 days to pay it, we intended to use that cash for other things like payroll and we pinky-swear that we won't go insolvent during that time" - if you got paid, you got paid, period.
  • adrr 6y ago
    Even if this exception to the law didn't exist which it doesn't in many states. I am sure no judge is going to let you float your company by claiming it was a loan payment a "mistake". You need to prove it was mistake like Citibank did and show that you attempted to immediately fix the mistake like Citibank did when they noticed the next day.