Fixed Loan Early Termination Details
Purpose
To calculate Early Termination (settlement) figures for a Fixed Loan
Access
from the Fixed Loan Account Details dialog
Dialog Details
Details Specific Fields
Early Termination Section
Field | Explanation |
Termination Reason | Not required for a quote [F2] and select the reason for the Termination |
Termination Date | Enter the projected date the account is to have Early Termination calculations up to |
Current APR | Enter the current lending rate if it is less than the Fin/APR on the right hand side of the dialog The system will then calculate the creditor loss as per the safe harbour formula in the CCCFA Regulations If this is left as zero, or the rate is greater than the APR displayed, the Creditors Loss will be 0.00 |
Rebate | This is the amount of interest yet to be earned on this contract, on a daily basis, up to the termination date entered |
Creditor’s Loss | This only shows if the Consumer Loan Checkbox is ticked It is the display field from the calculation made if a Current APR is entered |
Insurance Premium Rebate | This the amount of the Insurance Premium to be rebated based on the CCCFA regulations That calculation is essentially the Rule of 78. |
Insurance Commission Rebate | For insurance processed via the Insurer System if there was a commission component of the credit related insurance, then the rebate on this will be displayed separately |
Early Termination Fee | This is calculated based on the rules set up on the Account Type associated with the loan Alternatively, an amount can be entered here |
Dealer Commission Clawback | If the Dealer is paid commission generated from a Dealer profile and that is paid out up front, then the system will calculate the amount of commission that needs to be clawed back for the unexpired term This is also dependant on the Commission Clawback period of the Termination Reason’s Termination Type |
Communication Type | Select a Communication Type to be created so the details of the early termination can be given to the client This may be prepopulated if the Communication Type has been selected on the Termination Reason |
Insurer Communication Type | Select the Communication which creates the letter to be sent to the insurance company requesting the insurance rebate |
Mark Comm As Printed | Click this on if the Early Termination Quote communication needs to be created but will not be printed This will mark the communication as printed so it will not come up in the list of communications to be printed at the end of the day |
Include GST | Only required if the Lending Option of the associated Account Type is ‘GST’ Uplifts the termination amount by the tax amounts associated with unposted instalments |
| Include Recurring Charges | Determines whether Recurring Charges up to the Termination Date are to be included in the Termination amount If checked on a communication replacement field will be created with the value of Recurring Charges that will post to termination date |
Write Off Section
| Field | Explanation |
| Write Off Reason | Not required for a quote [F2] and select the reason for the Write Off |
Write Off Date | Do not change |
Write Off | The amount of the loan (less any default interest write off) that is to be written off |
| Default Interest Write Off | The amount of default interest to write off |
Details Specific Buttons
| [Button] | Explanation |
| This will process the Early termination A confirmation dialog will be presented: Click Yes to Terminate the Loan, you will be returned to the Account Browse Click No to cancel and remain in the Early Termination Details dialog |
Related Articles
Fixed Loan Early Termination
Purpose To calculate the termination amount, and post the transactions required to terminate the account Timing Termination of the loan will usually occur when the client has paid the termination amount due. The current ledger will have a credit ...Fixed Loan Control Details
Purpose Provide control details for the month end roll over process, key setup parameters and allow file paths to be selected for custom reports Access Fixed Loan | Edit/View Fixed Loan Control Details Dialog Details Details Specific Fields Field ...Early Termination and Write Off Simultaneously
Purpose A write off can be performed at the same time as the Early Termination by completing the Write Off section of the Early Termination dialog. The write off functionality is exactly the same for all termination methods. The process is described ...Fixed Loan Account Type Setup
Purpose The Fixed Loan Account Type details setup will specify the calculation rules, Transaction Types and General Ledger codes that are used to post control transactions on the Fixed Loan Account. Access Account | Edit/View Account Types | | ...Variable Loan Early Termination Details
Purpose To calculate Early Termination (settlement) figures for a Variable Loan. - calculates the figures to provide a client with a settlement Quote - terminates the loan according to the details entered Access Variable Loan Browse | for the ...