Overdue
Optionally enter a "Overdue" amount for charging default interest. If the Overdue Balance is equal to or below this value then default interest is not charged for the period and it is moved to the next oldest overdue balance.
Contractual O/D
Optionally enter a "Contractual O/D" amount for charging default interest.
Rate Basis
Select the Rate Basis for default interest, the options are Fixed Rate, Premium Rate and Plus Rate.
- Fixed Rate will charge the default interest on the difference between the default rate and the normal interest rate for the account, Eg. if the interest rate is 20% and the default rate is 25%, default interest will be charged at 5%.
- Premium Rate will charge default interest above the interest rate, Eg. if the interest rate is 12% and the default rate is 10% premium, Default Interest will be charged at 10%.
- Plus Rate will charge default interest at a rate calculated as the interest rate plus the Plus Rate, Eg. if the interest rate is 12% and the default rate is 10% Plus Rate, Default Interest will be charged at 22%.
Default Rate
Enter the Default Interest Rate, this will either be a premium rate or a fixed depending on the above settings.
In Default
Check if you wish to charge default interest on the balance when the Account is in non-financial default.
Post Maturity
Check if you wish charge default interest on the balance when the Account is post Maturity.
Or post final payment date from Payment Arrangement?
Check to charge Default Interest on the Account balance either post Maturity or post the last Payment Arrangement's final payment date, if one exists, whichever is later.
Overdue Basis
Define the basis that is going to display the Account as overdue.
Threshold
If the Contractual or Overdue is less than this value it will be treated as not overdue.
Charge Basis
Define if the Default Interest to be charged on the Accounts Balance or Contractual Overdue Balance.
Minimum Charge
Enter the value for "No Default Interest" to be charged Default Interest value is less than.
Charge Basis
Options are: None, Per Charge, Per Day, Per Month. If you choose other than None you may then enter a Default fee amount. Per Charge is a flat fee that is charged if the Account has been in arrears at any time during the interest period irrespective of number of days in the current period.
Charge Basis
Options are: None, Per Charge, Per Month. If you choose other than None you may then enter a Facility fee amount. Per Charge is a flat fee that is charged irrespective of number of days in the current period.
Value
Define the value of the Facility Fee to be charged.
Apply Minimum Balance threshold?
Check to provides a "tolerance" level for NOT charging the facility fee if the balance is lower than the threshold.
Threshold value
Optionally enter a "threshold" amount for charging facility fee. If the balance is equal to or below this value then the facility fee is not charged for the period.
Or if Account has had movement in period?
Check if Account is ONLY to charge the facility fee if there is movement and the Account has not had a zero or credit balance within the Interest period.