Create a Delinquency Payment Plan
A delinquent payment is the payment that is not made by the specified due date. This is also known as a late payment.
A payment that is late by a day can be considered as a delinquent payment. This can incur hefty fees and interest charges, depending on the type of account it is associated with. This can also be seen as a blemish on your credit report; lowering your credit score and making it less likely for your loans to be approved in the future.
Delinquency payment plan is when an already delinquent borrower promises to pay certain amount (For example, 50% of the reinstatement amount) and when you receive it, you keep your end of the promise by spreading the remaining reinstatement amount over remainder of the loan (the maturity date remains the same) or by attaching the remaining reinstatement amount to the end of the term (thus moving the maturity date).
Currently in our system, late fee is not applied if a payment (full or partial) is received on or before the Due Date. This means even if a loan is delinquent, the late fee will not be charged since a small payment amount is already received (a new payment or payment amount obtained from Excess or Reserve amount).The late fee is applied based on your payments and not when the bill is satisfied
Prerequisites
The following is the prerequisite to make a delinquent payment:
The loan is delinquent.
Steps
Perform the following steps to make a delinquent payment:
Login to your Salesforce account.
Click CL Contracts.
Select the required CL Contract ID.Ensure that you select a CL Contract with the Status, Active- Bad Standing.
Go to Loan Quick Menu.
Go to Loan Actions.
Click Payment Plan.
Select Extend Maturity Date, if required.
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Enter Spread Over Terms.
This is the number of terms over which the delinquent amount should be spread.
Click Preview.
Click OK. The Delinquency Payment Plan is saved.
Field Reference
| Field Name | Description |
|---|---|
| Loan Quick Menu | Loan Quick Menu provides easy access to the various loan parameters such as Charges, Payment transactions, Payment transactions, Repayment Schedule, the various loan actions and Account Statements. |
| Extend Maturity Date | This is the extension period to the loan maturity date. |
| Spread Over Terms | This is the number of terms over which the delinquent amount should be spread. |
| Delinquent Amount | Delinquent Amount is the total overdue amount on the lending account. |