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The Interest Administration page in System Management (System Management > Recovery > Interest Administration) provides administrators with the ability to define variable rates on charged-off accounts. The Lifecycle Management Suite's Recovery module supports account accrual and past Effective dates, which are also configured and maintained through Interest Administration.

The Interest Administration page contains two tabs, Interest Rates and Account Accrual, that are used to create and maintain interest rate and interest accumulation attributes. By default, the Interest Rates tab is selected upon navigating to the Interest Administration page.

Listed below are the Interest Administration attributes and the actions that can be taken while managing interest rates in System Management:

• Interest Rates
  • Interest Rate Attributes
    • Summary
    • Rates
  • Creating and Managing Interest Rates
    • Creating an Interest Rate
    • Editing an Interest Rate
    • Deleting an Interest Rate
• Account Accrual

Interest Rates

The Interest Rates tab provides administrators with the ability to create and maintain interest rates in the Lifecycle Management Suite. This functionality allows financial institutions to customize the flexible interest rates that are available across the institution.

Interest rate information is displayed within the following columns in the Interest Rates tab:

Column Name	Description
Active	Displays a  if the interest rate is currently active in the Lifecycle Management Suite.
Name	Displays the name/type of interest rate (e.g. Prime).
Current Rate	Displays the current rate (%) defined for the interest rate.
Last Modified	Denotes when the last modification was made to the interest rate.
Modified By	Denotes the user who made the last modification to the interest rate.
Created By	Denotes the user who created the interest rate in the Lifecycle Management Suite.

Interest Rate Attributes

All interest rates share common attributes that are defined while creating or editing an interest rate.

General

General attributes are located within the Summary tab.

Information is displayed within the following fields:

Field	Description
Name	Enter the name of the interest rate. This field is required.
Active	Select the Active check box to activate the interest rate in the Lifecycle Management Suite.
Description	Enter the description of the interest rate. This field is required.

Rates

Rate attributes are located within the Rates tab and provide administrators with the ability to create new rates and edit existing rates for the interest rate.

Creating and Managing Interest Rates

Creating an Interest Rate

To create a new interest rate, click within the Interest Rates tab of the Interest Administration page. The New Interest Rate window appears.

Define the general attributes within the Summary tab and click . A confirmation message appears stating the rate was successfully saved. Click OK to close the confirmation message.

Upon a successful save of the interest rate, the Rates tab becomes enabled. Navigate to the Rates tab and click .

Upon clicking Add Interest Rate, a blank row is added to the bottom of the grid. Click within the Effective Date and Interest Rate columns of the row to define the following information:

Field	Description
Effective Date	Enter, or select from the calendar, the date the rate is effective in the Lifecycle Management Suite. An Effective Date cannot exist more than once within the Interest Rates grid. If the same Effective Date is added to the Interest Rates grid multiple times, an error is received upon clicking Save or Save and Close stating unique Effective Dates must be used. If a date in the past is selected as the Effective Date, clicking Save or Save and Close presents the administrator with a message to confirm they wish to select an Effective Date in the past, as selecting a past Effective Date causes the Lifecycle Management Suite to re-process all Recovery accounts to re-accrue interest.
Interest Rate	Enter the interest rate.

When finished creating the interest rate, click  or . Click  to return to the Interest Administration page without saving any changes. Upon clicking Save and Close, the new interest rate is added to the Interest Rates tab of the Interest Administration page.

Editing an Interest Rate

To edit an existing interest rate, double-click or highlight the interest rate within the Interest Rates tab and click . The Edit Interest Rate window appears.

Edit any information within the Summary and Rates tabs and click  or . Click  to return to the Interest Administration page without saving any changes.

Deleting an Interest Rate

Interest rates cannot be deleted; they can only be made inactive.

To deactivate an interest rate, double-click or highlight the interest rate within the Interest Rates tab and click . The Edit Interest Rate window appears.

Clear the Active check box and click  or . Click  to return to the Interest Administration page without saving any changes.

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Account Accrual

The Account Accrual tab provides the ability for administrators to indicate when interest is accumulated for each GL Account Type/portion of the account balance. This functionality allows financial institutions to customize account accrual behavior to fit their business needs and to accommodate the regulations for their state.

The Account Accrual tab contains check boxes to indicate whether or not interest is accrued on Recovery Accounts and Repayment Plans for each GL Account Type. For example, in the above screen shot, interest is only being charged on interest for Recovery Accounts. Interest is not being charged on interest for Repayment Plans.

When finished defining how interest is accrued, click . A confirmation message appears stating Account Accrual was successfully saved. Click OK to close the confirmation message.

 

 

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