underpaymentnoun [ C or U ]
uk/ˈʌndəˌpeɪmənt/usCOMMERCE the act of paying someone too little for the work they do, or an occasion when this happens:
Problems included underpayments to some employees.
the act of paying less than is necessary or less than the value of something, or an occasion when this happens:
She received a bill for underpayment of more than $1000.
Much of the surplus is the result of underpayments to past policyholders.
BANKING, FINANCE the act of making smaller payments than originally agreed when paying back a loan, or an occasion when this happens:
It is important to have a loan with flexible features, which allow overpayment and underpayment.
You will be charged interest and possibly surcharges on any underpayment.
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