Delinquency fees
PayCredit's delinquency fees feature allows clients to define and apply customizable penalty fees at each delinquency stage. Fees can be configured as either flat amounts or percentage-based charges on the overdue balance. This feature enables automated penalty enforcement while allowing flexibility for users to adjust fees as needed.
Effective delinquency management requires a structured approach to penalizing overdue accounts while maintaining flexibility in fee adjustments. This feature:
- Automates late fee enforcement, reducing manual processing.
- Provides business flexibility in defining penalty structures.
- Ensures compliance with financial policies by enforcing a single fee type per stage.
- Helps institutions incentivize timely payments by imposing progressive penalties.
Key functionalities
- Stage-based fee application: assign specific fees to each delinquency stage.
- Flexible fee structures: clients can define either:
- Flat fees (e.g., $10 penalty for Stage 1).
- Percentage-based fees (e.g., 5% of overdue balance for Stage 2).
- Configurable amounts: users can modify fee values at any time based on business requirements.
- Single fee type per stage: each stage can have only one type of fee applied (flat or percentage-based).
Configuration conditions
- Delinquency stages must be configured before assigning fees.
- Only one fee type (flat or percentage) is allowed per stage to maintain consistency.
Configurable options
Clients are able to define the following:
| Configurable option | Definition | Example |
|---|---|---|
| Fee Name | Descriptive name for the penalty fee. | Late Fee for Stage 1 |
| Fee Type: Flat Fee | Fixed amount per stage. | $7 |
| Fee Type: Percentage of Overdue Amount | Dynamic fee based on overdue amount. | 2.5% |
| Editable Fee Values | Fee amounts can be modified at any time. | $7 to $7.50 |
Each delinquency stage can only have one fee type (Flat Fee or Percentage of Overdue Amount).
Example delinquency fee setup
| Stage | Fee Type | Example |
|---|---|---|
| Stage 1 (30 Days Overdue) | Flat Fee | $10 |
| Stage 2 (60 Days Overdue) | Percentage of Overdue Amount | 5% |
Updated 7 months ago