The desired outcome for a loan is that the borrower will pay off the loan in a timely manner. This article is designed to walk you through the process of paying off a loan, and the appropriate steps necessary to close an account. AutoPal goes to great lengths to ensure that you have accurate payoff values at any time during the loan lifecycle. Starting at the inception of the loan, AutoPal will calculate a repayment schedule that includes the dates and amounts of the payments that should be made on the loan.
Due to the fact that it is rare for a borrower to follow a repayment schedule exactly, AutoPal will take the appropriate steps to ensure accurate payoff values regardless of history.
It should be noted that the Payoff process is required to fully close a loan. Additionally, please note that payoff payments cannot be posted through the end-user website, or through AutoPays. This is intended to ensure that accounts are properly paid-off and processed.
AutoPal offers two different paths that can be utilized to payoff a loan. The process can be started from the loan summary tab, or the payments tab depending on your preference.
Beginning the Payoff Process Through the Loan Summary
Located directly within each loan on the Loan Summary tab, is a payoff section.
To initiate the payoff through the loan summary tab, start at the Payoff section. As a general rule of thumb, you should always start the payoff process (or payoff quote process) by selecting an option from the “Suspend” options, located in the center of the payoff section.
The suspend option suspends the application of future payments when generating payoff values. As an example, if you were generating a 10-day payoff quote for a loan, that had a payment due in 5 days, if you did not suspend the application of forecast payments, the payoff would count that payment as being applied. It is not always necessary to use, but it is a good practice. In this example we will select the “10” option. Once you have suspended forecast payments select the “Show Payoff” icon to generate a 10-day payoff. The 10-day quote will start with the date entered into the date field, in this instance “09/09/2016”.
Simply select the Payoff to access the payoff menu.
Beginning the Payoff Process Through the Payments Tab
To initiate a payoff from the Payments tab, select the “Payments” icon from the left hand column within the loan, and select the “Payoff” icon from the right hand side of the page.
After selecting the “Payoff” icon, simply select the date for which you will processing the payoff, and you will be directed to the payoff menu.
Posting the Payoff Payment
Regardless of which method you have used you will be directed to the payoff menu:
From this page, you can now select which method you would like to utilize to post a payoff payment. By selecting the “Log Pmt” icon, you will be able to post a standard payment. The “Debit”, and “eCheck” icons allow you to use merchant processing to process a payment. Please note the “Payoff Total” field, which allows you to select which value should be used and processed as the payoff. Your options are: With GPS Fee, Without GPS Fee, No Fees, and Custom Amount. It should be noted that when processing a “Custom Amount” as a payoff, the system will automatically log credits / advancements in order to fully close and zero an account.
Once you have made your selection for the amount to be processed, simply select the desired payment process type from the upper righthand corner of the payoff page.
- Log Pmt: Use this option if you are accepting a payment that does not require the use of merchant processing.
- Debit: Use this option if you are processing a debit type payment. This method will require the entry of a card number, or the use of an existing payment method.
- eCheck: Use this option if you are processing an eCheck (ACH) type payment. This method will require the entry of a bank account number or the use of an existing payment method.
- EFT/EBT: Use this option if you are processing a Canadian EFT/EBT payment type through VersaPay. This method will require the entry of a bank account number, or the use of an existing payment method.
Once you have made your selection you will be redirected to the Log Payment (Payoff) page. The fields available are dependent on whether or not you are using merchant processing to process the payoff payment. Both options are displayed below:
Logging a Payoff (Log PMT)
Logging a Payoff (Merchant Processing options)
Regardless of which method you choose to post the payoff payment, the options will be similar. The primary differences between logging a standard payment, and using merchant processing is the service fee (card convenience fee), and the “Payment Information” section.
Please be aware of two fields that are different than those available when posting normal payments. the “Update Account Closed Date”, and “Update this Loan to ‘Paid Off’ Status” must be selected in order to finalize the payoff. Once you have entered in the appropriate terms, simply select the “Process Payment” icon to finalize the payoff. Please note that when processing a payoff type payment, the date and amount will be prefilled with the values that were selected earlier in the process.
Once the payment has been processed, you can refer to the “Loan Summary” to ensure that the payoff was successfully processed:
Anytime you see “Amount Due (Paid In Full)” from the loan summary, you can rest assured that the payoff was processed correctly!
After an account has been paid off, you may notice an entry for “Final Interest” on the transactions tab. “Final Interest” is always applied when paying off a loan in AutoPal, and represents the per-diem calculated for the payoff date on a “Between Transactions” type loan.
In this circumstance, you will notice that $1.87 was applied towards final interest representing the per-diem accrued on 12/08/2016.
Loans setup with a “Between Periods” interest application will calculate interest from the last due date, through the current date and apply it as final interest. This is because the “Between Periods” interest application setting applys payments to a due date, and while closing a loan, interest can only be charged to the current date.
You will notice in this circumstance that the “Final Interest” value is $6.77, which is the interest accrued from 12/01/2016 (the last due date) thru 12/08/2016 (the payoff date).