Recurring Charge Creation


“Recurring Charges” are a special trigger based charge type that can be based on a number of factors. When a loan meets the specific criteria you have selected for the charge, the system will automatically apply the designated fee. Once charges have been created in this section, you need to enable charges for accounts on which you would like them to occur. Charges can be enabled in the “Charges” tab inside of a loan account.

How To

In order to implement “Recurring Charges”, please access the Settings > Loan Management > Charges tabs. From here you will be greeted with the following screen:

Access Recurring Charges

From here, select the “New Recurring Charge” option. This will open the recurring-charge editor.

Recurring Charges

Once you have accessed the Recurring charges page, you can create a charge. The fields on the page breakdown as follows:

  • Charge Status: Choose whether or not you would like the charge to default on or off. Enabled = On, Disabled = Off.
  • Charge Title: Enter a title or name for this charge, this should be a unique title so you can easily tell charges apart.
  • Charge Info: This field is used for additional information if you would like to record it. If left blank the system will default the date the charge was applied.
  • Amount Calculation: Choose the amount calculation, the options are: Fixed; this is a fixed dollar amount. Percentage; this is a percentage of the base calculation selected from the “Percentage Base” option which will appear when “Percentage” is selected for the amount calculation. Contingency; this will look up the value to charge from the contingency fee brackets.
  • Fixed Charge Amount: When the “Amount Calculation” is set to “Fixed”, this option will appear. From here you can enter the fixed dollar amount that the system will apply as a charge. Please be aware that changing the “Amount Calculation” field from fixed will remove this field and present other options.
  • Charge Trigger: This selection will allow you to determine which trigger type you wish to use for your new recurring charge. The charge triggers have several varieties, and are listed as follows:
    • Days Past Due: With this option selected, a recurring charge can be applied whenever an account reaches a certain number of days past due. Days past due are calculated as the number of days an account has gone with some form of a delinquent balance.
    • Next Due Date: This option allows you to charge automatic recurring charges when an account nears its next due date. The option will be selected as a number of days prior to the coming due date.
    • Last Payment Date: This option will trigger a recurring charge when an account has reached a certain number of days since the last payment posted.
    • Last Human Activity: AutoPal software tracks human interaction and activity on accounts. In the event that an account has gone a certain number of days since being serviced, automated recurring charges can be applied.
    • Day of Month: This option allows you to apply recurring charges on a certain day of the month, i.e. every 15th of the month, a fee will automatically be applied.
    • Contract Date: This field allows you to apply a recurring charge a certain number of days after a contract date. For example, if you have a fee that needs to be applied within one week of closing a contract, the system could automatically apply a fee on the seventh day.
    • Insurance Exp Date: This field allows you to apply fees a certain number of days after a borrower’s insurance policy expires and is not updated.
    • Credit Card Exp Date: This field allows you to apply a recurring charge in the event a client’s credit card on file expires and is not updated within a predetermined timeframe.
    • Promise Due Date: This will apply a charge before or after a promise date on a loan.
    • Promise Failed: This field will allow you to charge an automated fee in the event that a borrower’s promise to pay is not fulfilled.
  • Trigger Type:  This section allows you to select what type of a trigger will cause a recurring charge to be applied. When set to “Daily Qualifying”, the trigger will always be date dependent. Meaning that the option selected in the “Charge Trigger” field will apply based on a number of days prior to or subsequent to the selected trigger. If the trigger type is set to “Event”, the trigger will be based on a certain action occurring in the system. You will see the “Charge Trigger” field become grayed out, and a new field titled “Trigger Event” appear on the page.Event Based Triggers
    • “Event Based” triggers are slightly different in nature, as they are no longer dependent on date, but rather on a specific system occurrence. As displayed in the image above, you will notice that items like “Loan Origination”, and “Loan Activation” are suitable trigger types. Once the trigger is set, whatever value is located in the amount field will begin to apply.
  • Loan Type: This setting helps you tailor your recurring charges to specific loan types. By making a selection here, you will limit the types of loans that can have this fee applied.
  • Charge Application Type: AutoPal has two options for charge application types. The “Standard” charge becomes due immediately upon the charge date, and will reflect as a delinquent balance on the account until paid. The “Payoff Only” setting  will apply the charge to the loan, but is not considered due until the account is being paid off.
  • Restrictions: All of the settings in this section give you the ability to further limit the application of recurring charges to specific loan statuses, portfolios, or source companies. Through proper usage of these settings it is possible to make very specific fee structures.

Through proper usage of the “Recurring Charges” you will be able to effectively use AutoPal to match your existing fee structures, and automate those processes.

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