Overpayment of loan--ok to send back to ER?

[BG5150]

We have always suggested that if someone sends in extra loan payments to either:

1) Apply them to another outstanding loan, or

2) Send it back to the company to reimburse the participant

In fact, we deal with a national carrier that does #2 routinely. In fact, they make the check payable to the participant.

I have such a situation, but with another national carrier. They expressed their disagreement with the proposed correction (send back to the company) and believed the funds should stay in the trust to offset contribution, be reallocated or used to pay fees.

How do you guys approach these?

[Lou S.]

Send it back as an error.