Navigation:  Loans > Loan Screens > Cards and Promotions Screen > Options/Balance Information tab >

Bottom fields

Navigation:  Loans > Loan Screens > Cards and Promotions Screen > Options/Balance Information tab >

Bottom fields

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The fields in the unlabeled field group at the bottom of the Options/Balance Information tab are explained in the table below.

 

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The fields in this field group are as follows:

 

Field

Description

Roll Charges into Balance

 

Mnemonic: LNCLTC

This field indicates whether the system will roll finance charges, late charges, and miscellaneous fees into the balance or ADB of the customer card loan account. This option is set up during the loan origination process. If this field is marked, the Current and Prior Finance Charge fields will be disabled.

Opt Out Of Auto Default

 

Mnemonic: LNRSAD

Use this field to indicate whether the customer card loan account will stay at the Standard interest rate unless manually placed into the Default rate (from the Penalty Information field group).

Opt Out of Term Changes

 

Mnemonic: LNRLOP

Use this field to indicate whether the customer card loan account will automatically revert to the promotional rate when coming out of Default. If this field is marked, the loan will revert to the Standard rate. See below for more information.

 

There are two options available to your institution in allowing card loans to be reinstated to a promotional interest rate after the loan has gone into default.

 

1.Your institution can allow customers to return to the promotional rate after six consecutive months of on-time loan payments following the default. However, if the customer fails to make the next six consecutive required payments on time, the loan will continue with the penalty rate active for the remainder of the life of the loan.

 

Example: A customer opens a new card loan with a promotional interest rate of 6%. During the third month, the customer fails to make payments, thereby raising the card rate to the penalty rate of 23.99%. For five consecutive months after going into default, the customer pays the loan payment on time. However, in the sixth month, the customer makes another late payment. The system will automatically cause the interest rate on the card to stay at 23.99% and the loan can no longer revert to the promotional rate.

 

2.Customers can be given the choice to opt out of the above option. If this happens, and a loan reverts to the penalty rate, the loan will revert to the Standard rate after six consecutive, on-time loan payments. With this option, the loan may go into default more than once but still come out of default each time. To use this option, mark this field.

 

Example: A customer opens a new card loan with a promotional interest rate of 6%. During the third month, the customer fails to make payments, thereby raising the card rate to the penalty rate of 23.99%. For five consecutive months after going into default, the customer pays the loan payment on time. However, in the sixth month, the customer makes another late payment. The penalty rate of 23.99% will remain on the loan until the customer pays six consecutive, on-time payments. Afterwards, the loan will revert to the Standard card rate of 17.99%.

Year to Date Interest

 

Mnemonic: LNYTDI

This field displays the amount of interest earned in the current calendar year.

Last Year's Interest

 

Mnemonic: LNPYTD

This field displays the amount of interest earned in the previous calendar year.

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