1

Refund at Rule of 78

Upon payoff, any fees or costs that are eligible to be refunded back to the customer will be paid to the customer according to the amount calculated by the Rule of 78s (sum of digits).

2

No Refund After Refund Days

If this option is selected, fees or costs will not be refunded after the loan has been opened for more than the number of days in the Refund Days field.

3

Refund Before Days, Minimum $25.00

Select this option to refund fees and costs if the refund is processed before the number of days entered in the Refund Days field. Fees and costs will only be refunded if they add up to more than $25.00.

4

Refund Before Days, If Non-Cash

Select this option to refund fees and costs if the refund is processed before the number of days entered in the Refund Days field. Fees and costs will only be refunded as non-cash, such as to an outstanding loan balance.

5

Refund Within Days, Amortizes After

Select this option to refund fees and costs if the refund is processed within the number of days entered in the Refund Days field. After that, the fees and costs will be amortized according to how this screen is set up.

6

Earn $25.00, Refund Remaining Before Days

If you select this option, and the loan is paid in full within the first 60 days of the loan term, the first $25.00 of the acquisition fee is retained by your institution and the remainder of the acquisition fee will be refunded back to the borrower at a rate of one-sixtieth of the remainder of the acquisition fee per day.

7

Max Earning $25.00, No Refund After Days

This rule will allow up to $25.00 in earning within the number of Refund Days based on a 360-day basis with any difference over the $25.00 earned being refunded back to the borrower within the designated refund days. After the number of refund days has passed, the borrower is not eligible for any amount of the fee to be returned.

8

15/16 Day Refund – Open Date: At the time of rebate (at payoff, conversion from precomputed to interest-bearing, etc.), the system compares the day portion of the date opened (LNOPND) to the payoff/cancellation date. If the remainder (number of days) is 15 or less, the system will not take any fee amortization for the payoff month. If the number of days is 16 or more, fee amortization is earned for the whole month.  

Example: The Opened Date is 10-25-13 (the day of the month is the pertinent factor) and the payoff date is 1-17-14. Since more than 15 days have passed between 12-25-13 and 1-17-14, the system would collect a full month of fee amortization for January. Had the number of days between 12-25 and the payoff date been 15 days or less when the payoff was calculated (Loans > Payoff screen), the system would rebate that month's fee amortization to the borrower.

9

15/16 Day Refund – First Due Date: This rule is similar to 8 above, except the system uses the First Due Date instead of the Opened Date to calculate the refund.

Example: The First Due Date is 10-25-13 (the day of the month is the pertinent factor) and the payoff date is 1-17-14. Since more than 15 days have passed between 12-25-13 and 1-17-14, the system would collect a full month of fee amortization for January. Had the number of days between 12-25 and the payoff date been 15 days or less when the payoff was calculated (Loans > Payoff screen), the system would rebate that month's fee amortization to the borrower.

10

1 Day – Open Date: If the payoff/cancellation date occurs on the same day or less as the day of the date opened, then the customer is refunded that month’s amount of the fee amortization. If the payoff/cancellation date occurs one day after the opened date day, your company keeps that month’s amortization.

Example: The Opened Date is 02-10-2014. The loan is paid off early on 07-10-2014. The customer would be refunded back the amount of the fee that was amortized for that month, because the payoff date lands on the same day of the month as the Opened Date. If the loan is paid off on 07-11-2014, your company would keep the amount of the amortized fee for that month, because the payoff date lands one day after the day of the month as the Opened Date.

11

1 Day – First Due Date: This refund rule is similar to 10 above, except instead of using the Opened Date, the system uses the First Due Date to calculate the refund.

Example: The First Due Date is 02-10-2014. The loan is paid off early on 07-10-2014. The customer would be refunded back the amount of the fee that was amortized for that month, because the payoff date lands on the same day of the month as the First Due Date. If the loan is paid off on 07-11-2014, your company would keep the amount of the amortized fee for that month, because the payoff date lands one day after the day of the month as the First Due Date.

13

Collect $25.00, No Refund After Days: This rule immediately earns up to $25.00. The difference between the Original fee amount and the amount earned by this rule is refunded at payoff only if the amount is greater than $25.00 and the time elapsed is less than or equal to the loan open date plus its Refund Days. Otherwise, no refund will be awarded.

14

Refund All: This rule will refund back to the borrower the original amount of the fee (as indicated in the Original field) regardless of maturity date at the time of payoff or conversion from a precomputed loan (payment method 3) to an interest-bearing loan (payment method 6).

The Skip CIB Processing field must not be selected if your institution wants to refund the amortizing fee when a precomputed loan is converted to an interest-bearing loan. Precomputed loans are converted to interest-bearing loans using the Convert Precomputed to Simple tab. The full amount of the amortizing fee will be refunded during the transaction. The amortizing fee will also be refunded back to the customer during Payoff but only for precomputed loans. Note: Do not allow the fee to refund/earn at payoff if the account’s Payment Method is “6” (Daily Simple Interest) and the PC2IB transaction has already been run (this is due to the fee already having been refunded at the time of the transaction). For all other Payment Methods, refund the fee at payoff.

If the Skip CIB Processing field is marked and this refund rule is used, the fee will be refunded at payoff.

If the Deferred Cost field is marked, this refund will be treated as a fee collection, not a fee refund (and the payoff amount will increase).

If this is an amortizing cost instead of an amortizing fee (see Costs on the Amortizing Fees and Costs screen), the refund will be treated as a fee collection, not a fee refund, and the payoff amount owed by the customer will increase instead of decrease.

For more information about implementing this refund rule at your institution, contact your GOLDPoint Systems account manager.

15

Max Earning $50.00, No Refund After Days

If the calculated value of the Original fee amount (F1FORG) minus 50.00 is greater than zero, that value will be refunded back to the borrower if the loan is paid off within the Refund Days (F1RDYS). If that calculated value is less than or equal to zero, there will be no refund to the customer. If the payoff occurs after the Refund Days, there will be no refund.

In order for this code to function properly, the Original and Refund Days fields must be in use and the Include in Payoff (F1PYOF) checkbox field must be marked.