Delinquency

The Delinquency Microservice enables PayCredit clients to define and manage delinquency configurations at the product level. Each product can have multiple delinquency configurations, but only one must be marked as the default. Accounts can either inherit the product's default delinquency configuration or have a specific one assigned.

This component is responsible for handling overdue accounts, defining stages of delinquency, applying penalties, enforcing system-defined actions based on overdue triggers and tracking delinquency status.

Key functionalities

Delinquency configuration management: enables the creation of multiple delinquency configurations per product, with one marked as the default.
Delinquency stages: defines overdue status levels based on days overdue or missed repayments.
Delinquency fees: supports configurable penalty structures, including flat fees and percentage-based fees.
Delinquency actions: executes system-defined actions, such as blocking accounts or disabling interest accrual.
Delinquency cycle tracking: maintains a historical record of overdue payments across multiple cycles.

Configuration conditions

Each product must have one and only one default delinquency configuration.
Clear trigger conditions must be defined for each delinquency stage.
System actions are predefined and cannot be modified.
Fees are configurable at the delinquency stage level and can be updated as needed.

System flow

Delinquency triggers can be based on days overdue or missed repayments.

The below is an example sequence flow of PayCredit delinquency when days overdue is used as the trigger:

Stage	Days overdue (trigger)	Action
Stage 1	An account reaches 30 days overdue	$10 late fee
Stage 2	An account reaches 60 days overdue	Blocks debit transactions
Stage 3	An account reaches 90 days overdue	Disables interest accrual (future release)

Configuration management

PayCredit's delinquency configuration allows clients to define delinquency configurations at the product level. Each product can have multiple delinquency configurations, but only one must be set as the default. This feature ensures that accounts can either inherit a default delinquency configuration or have a specific one assigned, enabling automated handling of overdue accounts.

Clients are able to define the following:

Configuration option	Definition	Example
Delinquency Name	The given name for the specific delinquncy configuration.	Standard Delinquency Plan
Description	Explanation of delinquency setup purpose.	The Standard Delinquency Plan is the default delinquency configuration for the VIP Credit Product.
Default Status	Boolean flag (`TRUE` or `FALSE`) to define the default configuration.	True