Loans > Loan Screens > Account Information Screen Group > Account Detail Screen > Late/NSF tab

The following fields are found in the Late Charges Options field group on the Late NSF tab of the Loans > Account Information > Account Detail screen.

Note: See help for the Collect Late Charges When Current field (see below) for detailed information about collecting late charges for the current month when payments are more than one month past due.

See also Special Late Charge Assessment and Grading for information about special late charge assessment and grading.

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The fields in this field group are as follows:

Field

Description

Multiple Late Notices

Mnemonic: LNMBNT

Check this box if late notices will be created for all multiple borrowers connected to this account (through the Customer Relationship Management > Households screen, Accounts tab, then select account owner or co-owner from the Account Ownership field). When the actual notice is created, asterisks (**) will appear in the bottom-right of the name and address section for notices created for the second, third, etc., borrowers on the loan. This will help you quickly identify when more than one notice is created for the same account.

See also help for the Payment Stops Notice field below.

Payment Stops Notice

Mnemonic: LNPTST

If this box is checked, the system looks for a checkmark in the Owner Occupied field and Collateral Code of 1 (single family - new), 2 (single family - previously occupied), 3 (single family condo - new), or 4 (single family condo - prev. occupied) on the Additional Loan Fields screen. If a payment has been posted during the month but the loan is not current, a late charge will not be assessed. If you use this field, you should not have Institution Option SLTG set, which controls the assessing of late charges on an institution-wide basis rather than a loan-by-loan basis.

Stop Late Charge if Past Original Maturity/Term?

Mnemonic: LNLCPM, LNSLOT

If Stop Late Charge if Past Original Maturity is marked, the system will look for a date in the Maturity Date field and compare it to the date the late charge is being assessed. If the original Maturity Date plus Grace Days is prior to the date the late charge is being assessed, the system will not assess a late charge. If the original Maturity Date is equal to or in the future of the date the late charge is being assessed, the system will continue to assess late charges as usual.

If Stop Late Charge if Past Original Term is marked, the night late charges are to be assessed, the system will compare the number of late charges that have been assessed to the number of months in the Original Maturity Term field (found on the Additional Loan Fields screen divided by the payment frequency. Once the number of times late reaches that calculation, no further late charges will be assessed. (If the original term of the loan was 24, with monthly payments, no more than 24 late charges will be assessed, even if the loan term is extended.)

For biweekly loans, the calculation is the original maturity term times 26 divided by 12.

Stop Late Charges if Past Current Maturity

Mnemonic: MLSLCM

Check this box to stop late charges once the loan reaches the current maturity date, not at the original maturity date. This field is transferred from GOLDTrak PC.

If this is selected, the system will look for a date in the Maturity Date field and compare it to the date the late charge is being assessed. If the maturity date plus Grace Days is prior to the date the late charge is being assessed, the system will not assess a late charge. If the Maturity Date is equal to or in the future of the date the late charge is being assessed, the system will continue to assess late charges as usual.

Late Fee Restrictions?

Mnemonic: MRLTFR

If this field is checked, then at the time a late charge would be assessed, the program checks to see if a full payment (payment collected equals the P/I Constant) has been made this month within the grace period (Due Date + Grace Days). If a full payment has been made within the grace period, then no late charge will be assessed for the month, regardless of which payment is being applied.

Example:

Loan is due for 08/16.
Grace days are 10.
The August payment is made on 10/20 and it is a full payment.
No late charge would be assessed for October.

The use of this option is state regulated.

Collect Late Charges When Current

Mnemonic: LNLTCC

Check this box to indicate to the system that all payments made to delinquent accounts between the due date and grace days period for the current month will keep that account from assessing a late charge for the current month (see Example 1 below). See below for more information.

Any payment made, with this box checked, before the due date of the current month may go toward earlier due dates causing the account to assess a late charge for the current month (see Example 2 below). If this box is not checked, payments made may go toward earlier due dates which will cause the account to assess more late charges than allowed by some state laws.

For example, if a loan payment is two months past the due date, and the account owner pays only enough to cover one month's loan payment and makes that payment on the second month's due date or within the grace period, the system usually charges a late fee for the first month the account owner was late, as well as a second late fee for the current month, because the system applies that payment to the first month, leaving the second month still due.

If this box is checked, the system will charge a late fee for that first month but will apply the payment toward the current month. The first month's payment amount is still owed, but the current month's payment will not incur a late fee. However, if the account owner pays even one day prior to the due date, the payment will go toward that first month and not the second month, and the account could incur another late charge if the account owner does not pay a second payment on the due date or within the grace period of the second month.

Example scenarios with the Collect Late Charge When Current box checked:

Example 1: An account owner missed July's payment due July 5. On August 10 (due date of August 5, but with a five-day grace period), the account owner makes a full payment amount for one month. The system would do the following:

•Charge a late fee for July's payment

•Not charge a late fee for August's payment, because the account owner made a timely payment in that month

Example 2: An account owner missed July's payment due July 5. In August, the account owner makes a full payment for one month and pays it on August 4, one day before the due date. The account owner makes no additional payments in August. The system would do the following:

•Charge a late fee for July's payment

•Charge a late fee for August's payment

If an account is assessed a late charge, the account will appear on both the Late Charge Journal (FPSRP065) and Loan Afterhours Processing Exception Listing (FPSRP013).

45 Day Delinquency Notice?

Mnemonic: LN45DY

Use this field to indicate whether your institution wants 45-day delinquency notices to process on the customer loan account. See the Notice 1, 2, 3, Type/Day details for more information.