Finance agreement transaction types

Finance agreement transaction types


Transaction Type
Description
Balance
Fee Balance 
Arrears Balance
Overpay Balance
ArrearsAdjustment
Any transaction that results in an adjustment to the existing arrears value.


Increase

ArrearsAdjustmentOnInterest
Any interest transaction that results in an adjustment to the existing arrears value


Increase

ChequePayment
Purchase a finance agreement and pay borrower by cheque
Increase



DirectCreditPayment
Purchase a finance agreement and pay borrower by direct credit
Increase



DirectDebitReceipt
Borrower pays by direct debit
Decrease

Decrease

DishonourFee
Fee for a payment that dishonours at the bank

Increase
Increase

FeePayment
The portion of a payment received that is allocated to outstanding fees. Fees are deducted first when a payment is received
Increase
Decrease


InstalmentDue
An instalment that is due as per the payment schedule


Increase

Interest
Interest charged on the finance agreement
Increase



InterestOverpayRecovery
In some circumstances a borrower repayment is received by our bank  on a business day but the transaction is processed overnight. Bank files will be processed the next day or potentially a few days later where public holidays occur. This results in accounts accruing interest on the borrower repayment not yet applied to the finance agreement. When bank files are run at the backdated value date, the finance agreement is revalued to reverse out the interest accrued on this repayment amount.
Increase


Decrease
OtherFee
Any other fees charged to the finance agreement

Increase


OverdueFee
Fees that are charged for overdue instalments that have not been paid on time

Increase
Increase

PaymentOnCapital
The portion of a payment that is split to capital




PaymentOnInterest
The portion of a payment that is split to interest




PaymentReceived
Borrower pays by any means other than direct debit example BPAY or bank transfer etc
Decrease

Decrease

SmallBalanceWriteOff
Once the finance agreement balance goes below the define small balance write off the balance is written off and account settled
Decrease



TransferDebit
Money is transferred out of the finance agreement, examples  overpayment amount transferred into the fund account of the borrower keep in mind the balance was negative after the overpayment , establishment fee transferred to the establishment fee control account
Increase



TransferFromBalanceToOverPay
It could happen that a borrower pays more than the balance plus fee balance. If this a happens the "overpay balance" will increase with the amount overpaid. The balance  is increased. Keep in mind that the overpayment has resulted in the balance becoming negative, so once it is increased the balance will be zero. The money will remain in the overpay balance until the transaction is cleared
Increase


Decrease
TransferFromOverPayToBalance
Once the transaction that resulted in the overpayment has cleared, the money will be moved out of the overpay balance and back into the balance so that it can be transferred to the borrowers fund account for them to withdraw the money
Decrease


Increase
UnpaidItem
A payment from the borrower that has dishonoured
Increase

Increase



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