4.73.9 - Late Settlement Fees
We’re excited to introduce the Late Costs Settlement Feature—a powerful new feature designed to help automate and streamline the tracking and application of late fees within Mobiloan.
This monitor can be fully configured and tailored to individual loan products, allowing lenders to define how and when late settlement costs should be applied.
Once configured, Mobiloan will automatically accrue a Late Settlement amount whenever a loan becomes overdue, clearly reflecting the amount owed by the client.
How It Works
A cloud-based task runs daily at 12:00 AM, scanning all loans for overdue installments.
When overdue loans are identified, late fees are automatically generated based on the configuration applied to the loan product - as pending fees.
If the user chooses to initiate a Late Settlement, Mobiloan will automatically generate a new scheduled installment that reflects the applicable late fees. This installment will be added to the client’s overall loan balance, ensuring the outstanding amount is accurately updated to include the accrued charges.
Even if a client has paid off their final scheduled installment via debit order, late interest and service fees may still be outstanding if any payments were made after their due dates.
These unpaid fees remain on the loan ledger, and the client’s status will continue to show as Overdue or under Management Hold until a Late Settlement is completed.
These additional late settlement fees can be either Captured manually through a direct payment method (e.g. cash or EFT) or, If the fees are substantial and the original mandate has expired, they can be included in the next debit order mandate created for the client.
This ensures that outstanding amounts are recovered in a manner that is both accurate and aligned with the client’s current repayment setup.
Important Behavior Notes
If this feature is enabled starting today, it will only begin to calculate late fees based on current month’s installments or those that are scheduled within the current month.
At month-end, Mobiloan will begin to accrue late fees for any installments that have passed their scheduled date.
Previously late installments that have already been paid will not be retroactively included in the calculation of new late fees.
For more information on how to configure Late Costs in your loan products, please select the links below.
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