Arrears fees against arrears letter / documents

Arrears fees are charged automatically to a finance agreement when an arrears document is generated. The fee charged can be different depending on the amount in arrears. Fees are defined against each arrears letter/document and is tiered by amount in arrears. 

See this article for an overview on arrears management.

1. Go to Home pages -> Arrears Management -> Arrears Letter Processing

 

2. List the Arrears letter processes using the filter options and select the arrears letter process that you need to edit. Once you select the Arrears letter process that you have created from the list.

3. The arrears letters that have been created will be displayed in the "Arrears Document Templates" tab at the bottom of the page. Select the arrears document / letter that you would like to attach the fees to.

 

4. Go to the Actions / hamburger menu -> Arrears Letter -> Create New Fees

Transaction Type: If the fee is charged it will appear against the finance agreement under the transaction type selected.

Effective Date: The date the fee will become effective. This allows fee increases or decreases to be controlled.

Charge fee after instances: Fees will not be charged until the finance agreement has been in arrears the defined number of times, allowing for a grace.

5. Once the arrears fee table has been created the actual fee amounts to charge will nee to be defined. In the "Arrears Letter Fees" tab at the bottom of the page, select the fee table you defined.

6. Go to the Actions / hamburger menu -> Functions -> Add amount Fee Tier

From Amount & To Amount: Fees will only be charged if the arrears amount falls between the from the to amounts defined

Amount: The fee amount to charge

The arrears documents and fees will only be generated when the arrears amount is greater than the tolerance amount. When creating the fee tiers that are linked to an arrears document, a from and to amount can be defined for a fee tier. These amounts determine the fee that will be charged if the arrears amount falls between the values. The tolerance amount will supersede the tier fee structures example:

Tolerance amount is $100

Fee tier A is $0 - $1000 to have a fee of $10

Fee tier B is $1001 - $50000 to have a fee of $20

If the arrears amount on the loan is $50 then no arrears document will be generated and no fees added to the account.

If the arrears amount on the loan is $150 then the arrears document will be created and the fee of $10 charged.

• Related Articles

• Create/ Edit arrears letter processing

  An arrears letter process contains all the rules and fees for the automatic generation of arrears letters / documents that will be sent to the borrowers. See this article for an overview of arrears management. 1. Go to Home Pages ->  Arrears ...

• Overview of arrears management

  Arrears consists of the following elements  arrears statuses arrears pools arrears age bands arrears letters arrears fees arrears collectors The above elements are all determined and calculated using the number of days a finance agreement is in ...

• Arrears letters / document templates

  Once you have created an arrears letter process, then the next step will be to add arrears letters / document templates.  The arrears letters are the actual arrears documents that will be generated when a finance agreement goes into arrears.    See ...

• How does the arrears cycle reset steps on arrears letters work

  There needs to be a clear definition and boundary for an arrears “cycle”. So in other words at what point does the finance company wish to end and restart the sending of a specific arrears letter and charging of associated arrears fees. To give an ...

• Defer arrears on a finance agreement

  Charging of arrears can be “deferred” on a finance agreement. Setting the defer arrears days on a finance agreement will reduce the arrears days on the account by the defer arrears days, up until the expiry of the defer agreement or until the ...