Loans > Loan Screens > Account Information Screen Group > Signature Loan Details Screen > Late Fees/ACH tab

Use the Late Code field in conjunction with the Late Charge Rate field to indicate how late charges should be calculated on the customer account.

Notes on Purchased Loans

The Real Estate Settlement & Procedures Act (RESPA) specifically states that, under certain circumstances, a late fee cannot be imposed during a 60-day period from the "date of transfer." If your institution purchases loans, be sure to refer to RESPA and any applicable state regulations to be sure you are in compliance. Institution Option LTCB is available for loans that have been purchased. This option allows your institution to determine the number of days after a loan has been purchased before a late charge will be assessed:

•The system first looks at the Originated/Purchased radio buttons on the Loans > Account Information > Additional Loan Fields screen. If "Purchased" is selected, the system subtracts the purchase date from the late charge assessment date. If this is less than or equal to the number of days in the institution option, a late charge is not assessed. (The actual number of days is used, so if a month has 28 or 31 days, those actual days are counted in determining whether to assess or not.)

Late Charge Exemptions

Late charges will not be assessed on accounts with a General Category of 80-89 (foreclosures/repossessions). However, Institution Option LC82 allows late charges to be assessed for accounts with a General Category of 82 (charge off non-real estate property) or 85 (repossessed assets) unless the account has reached maturity. Late charges will not be assessed on accounts with Hold Code 90 (judgment awarded) active. For institution 360, a late charge will not be assessed on the first due date on any customer account.

Note: See help for the Collect Late Charges When Current field on the Loans > Account Information > Account Detail screen for detailed information about collecting late charges for the current month when payments are more than one month past due.

Certain circumstances (such as bankruptcy, judgment, or grading) can stop late charges from assessing normally on a consumer loan account. See the Special Late Charge Assessment and Grading page for information about the assessment process used in these circumstances.

Possible selections in this field are:

Code	Late Charge Calculation
0	No late charge assessment
1+	Percentage of total payment
2+	Percentage of P/I constant
3	No late charge assessment
4+	Percentage of 1/12 of the principal balance
5	Percentage of total payment ($10.00 maximum)
6	Percentage of total payment ($5.00 maximum)
7	Percentage of P/I constant ($6.50 maximum)
8	Percentage of P/I constant ($14.00 maximum)
9	Percentage of P/I constant ($5.00 maximum)
10	Percentage of P/I constant ($15.00 maximum)
11	Percentage of P/I constant ($11.00 maximum)
12+	Percentage of loan principal balance
13	Percentage of P/I ($5.00 minimum)
14	Percentage of P/I ($15.00 minimum)
15**	Charge a flat fee (A dollar amount can be entered instead of a rate in the Late Charge Rate field)
16	Percentage of payment amount ($15.00 maximum)
17	Percentage of P/I constant ($25.00 maximum)
18	Percentage of total payment ($10.00 minimum)
19	Percentage of P/I constant ($10.00 maximum)
20	Percentage of P/I constant ($100.00 maximum)
21***+	Percentage of unpaid portion (payment method 5 only )
22	.0025 x Loan Principal Balance ($25.00 minimum)
23+	Calculates the late charge based on the percentage of unpaid portion (payment methods 3 and 6). (The unpaid portion is the payment minus the Applied to Payment amount.)
24	Percentage of original P/I
25+	Percentage of unpaid portion or P/I. Calculates the late charge based on the percentage of unpaid portion (payment methods 3 and 6). (The unpaid portion is the payment minus the Applied to Payment amount.) When only one frequency delinquent, it subtracts the amount in Applied to Payment. When more than one frequency delinquent, it does not subtract.
26	Charge a Flat Fee With Minimum/Maximum When this code is selected and a late charge is assessed, the system will charge a flat fee that must be equal to or greater than the amount in the Charge Minimum Fee of field and equal to or less than the amount in the Charge Maximum Fee of field (both on the Late/NSF tab of the Loans > Account Information > Account Detail screen).
27	Bring Current Between Late Charges Flat (only one fee assessed per delinquency)
28	Bring Current Between Charges % of P/I (charges percentage of original principal and interest payment. Also takes into account Charge Minimum Fee and Charge Maximum Fee fields. Only one fee assessed per delinquency).
29	5% of Payment ($15 Min): LNPRTL <= 1/2 Pmnt When this Late Code is active on a customer account and one-half or more of any payment remains unpaid more than 7 days after it is due, the account will be charged a fee equaling either 5% of the amount of the schedules payment or $15 (whichever is greater).
30	Percentage of Current Payment (Unpaid portion due x Late Charge Rate Fee or Maximum Fee, whichever is less). This code affects the function of the Interim Paid Amount field (as indicated on that field's help page).
50****	Calculates the penalty interest based on the principal and interest due on all delinquent payments This code assessed on a nightly basis. It will appear in the loan history each night it assesses. On the weekend, the late charge will be assessed for Friday, Saturday, and Sunday. The formula used to calculate this late charge is as follows: (principal portion of payment) x (penalty rate - loan rate) / (interest base) x (number of days) + (interest portion of payment) x (penalty rate) / (interest base) x (number of days) = late charge