Late Fee Setup

Depending on the state where you are doing business, you need to setup your late fee calculations with figured that are considered acceptable in the eyes of the law.

• YOU are responsible for knowing your state laws and making sure this tool is configured to comply with those laws!
• When the program is first installed, the options set in this area are defaulted to what is considered acceptable in California.
  • These figures may not be considered reasonable in the eyes of the law in your state.

To set the default late fees, click File->Setup->Buy-Here/Pay-Here->Late Fees.

• You may enter a Percentage of a periodic payment or a dollar amount, and then set the system to select either the Greater or Lesser figure depending on your state laws.
• Then you may enter the Grace Period, or the number of days that the customer is allowed as leeway after the due date before that late fee is applied.

• Add to Account & Pay-Off Balance Only - Use this if you want to add any adjustments (such as late fees) to the account balance and pay-off balance only.
  • In this situation, if the payment is $200.00 per period, the system would still attempt to collect $200.00 at the time of the next payment after the Late Fee was applied, but once the customer had finished satisfying their outstanding principal, they would still be required to make payments until that late balance had also been reduced to zero.
  • If they wanted to pay-off the loan early, the pay-off displayed in their deal will already have this amount included in that balance.
• Add to Periodic Payments - Use this if you want to add the Late Fees to the periodic payment.
  • For example, if a customer was making payments of $200.00 per period and they have $25.00 in outstanding Late Fees, the system would attempt to collect $225.00 in the next payment after that late fee was applied.

 

To set the late fees for a specific deal, open the deal and click the Payments tab, then click Actions->Late Fees.

• You may enter a Percentage of a periodic payment or a dollar amount, and then set the system to select either the Greater or Lesser figure depending on your state laws.
• Then you may enter the Grace Period, or the number of days that the customer is allowed as leeway after the due date before that late fee is applied.