[kgwgk]

Interesting.

The (edit: one) meaning of "loan servicing" used to be only (edit: not only) paying - not (edit: also) collecting payments.

https://ahdictionary.com/word/search.html?q=service

3. To make interest payments on (a debt).

[onlyrealcuzzo]

There's a difference between service payments and servicing / a debt servicer.

IIUC, "service payment" comes from the fact that you are paying for a service - someone is providing you with debt as a service... The debt servicer.

[kgwgk]

Definitely there is a difference between paying and collecting payments!

I was aware of "servicing a loan" as "paying the interests". But I've found that the "administrative" meaning also goes back many decades.

[zaroth]

Yeah it’s a bug for sure. ‘Loan service processor’ got shortened to ‘loan servicer’ which definitely steps on the toes of ‘debt service’.

Someone should open a ticket.