Charges - Interest Exclusion Period (Learn More)

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Apply Interest

 

Description  

TOPS [ONE] supports an Exclusion Period when Applying Interest to a homeowner account.  Choosing an Exclusion Period will affect the application of Interest and is mandated by some states. 

If you wish to utilize the Exclusion Period, enter the number of days into the "Exclusion Period" input field. 

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The default value of zero (0) means there is NO Exclusion Period and will not be considered when calculating Interest.  If the Exclusion Period is set to zero (0) then any homeowner with a balance due (based on the Interest Method selected) will have Interest charges accrued.

Exclusion Period Days are counted BACKWARDS from the Delinquency Date creating the date range where charges will be EXCLUDED from the Interest calculation.

 

Examples 

Example 1

Exclusion Period:  20 days                                                                 Delinquency Date:  March 18, 2020

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An owner was charged $100 on March 1st and it remains unpaid as of the Delinquency Date of March 18th.  The $100 is aged 18 days (from March 18th backwards to March 1st).  In this case, the Interest Exclusion Period would be February 28th to March 18th--20 days (March 18th less 20 day Exclusion Period = February 28th).  Any homeowner charges within this date range WOULD NOT be included in the Interest calculation.  But any homeowner charges dated earlier than this date range WOULD be included in the interest calculation.

The owner's balance of $100 from March 1st falls into the 20 day Exclusion Period date range of February 28th to March 18th, so that homeowner WOULD NOT have Interest applied to their $100 balance from March 1st.

Interest Exclusion Period:           February 28th to March 18th

 

 

Example 2

Exclusion Period:  20 days                                                                 Delinquency Date:  March 25, 2020

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An owner was charged $100 on March 1st and it remains unpaid as of the Delinquency Date of March 25th.  The $100 is aged 25 days (from March 25th backwards to March 1st)

In this case, the Interest Exclusion Period would be March 6th to March 25th  (March 25th less 20 day Exclusion Period = March 6th) meaning, any homeowner charges dated within this date range WOULD NOT have Interest charges accrued.  But any homeowner charges dated March 1st to 5th WOULD HAVE Interest charges accrued.

The owner's balance of $100 from March 1st is OUTSIDE the 20 day Exclusion Period date range of March 6th to March 25th, so that homeowner WOULD have Interest applied to their $100 balance from March 1st.

 Interest Exclusion Period:           March 6th to March 25th

 

 

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