Survey highlights loan calculation errors, compliance struggles across lending industry
Carleton, a provider of compliant loan calculation and disclosure solutions, has released results from a nationwide survey showing widespread calculation errors, compliance strains, and operational challenges across the lending sector — issues that carry implications for powersports and auto dealers alike.
According to the survey, more than two-thirds of lenders experience recurring loan payment discrepancies on a weekly or monthly basis. The most common causes include miscalculated fees or add-ons (23%), incorrect application of interest rates or APRs (23%), and human data entry errors (21%). Nearly half of respondents said compliance issues such as inaccurate APRs or outdated disclosures had already resulted in rework, audit findings, or legal exposure.
Confidence in current systems remains low, with 44% rating their trust at just a 1 or 2 on a five-point scale. Regulatory changes are also a major pain point, with 60% of lenders reporting that they struggle to keep their systems aligned with evolving federal and state rules. Only one-third of organizations reported being able to implement updates in under a month, while nearly a quarter stated that it takes three months or longer.
Complex loan structures are another hurdle. About one-third of respondents stated that tiered rates, variable payment schedules, and other complex loan designs often lead to delays and errors. Only 14% felt that their existing tools effectively handled these structures.
Operationally, the need for cross-functional teams to manage compliance updates often pulls resources away from day-to-day business. The top frustrations reported included the risk of costly compliance errors (26%), the time required to finalize deals (25%), and the ongoing complexity of regulations (19%). Surprisingly, nearly one in six organizations still rely on spreadsheets for loan calculations despite the risks.
Looking ahead, lenders expressed a desire for more accurate calculation tools (24%), better reporting and audit readiness (21%), improved integration across CRM, DMS, and LOS platforms (20%), and real-time compliance monitoring (20%).
“This survey shines a light on just how much effort lenders continue to put into getting calculations and disclosures right. When confidence in systems is low and errors remain frequent, it signals a broader industry problem — one that demands better integration, automation, and proactive compliance monitoring,” — Tim Yalich, Vice President of Business Development at Carleton.
Carleton says the findings highlight opportunities for improved loan management and compliance solutions that could directly benefit dealers working with lenders and finance partners.
