Loan Modification - Late Fees

To modify the Late Fees settings for an existing loan, follow the overview's steps until you're at the desired loan's "Modify Loan" drop-down menu. 

While viewing the loan, using the "Modify Loan" drop-down menu, click on "Add / Modify Loan Principal".

You will then see the loan's late fee summary with options that the loan was originally set with, in this case it was set with a Late Fee as Percentage of Payment and gives options for: "Late Fee Calculation Method", "What is the per period Late Fee Percentage?", and "What is the Grace Period?".

The options for the Late Fee Calculation Method are: "No late Fees will be charged", "Charge Late Fee as a Percentage of Payment", and "Charge Late Fee as Flat Fee for the Period".

For the first option "No late Fees will be charged", the only option given will be to set a Grace Period. The grace period in this case wouldn't do much because late notices are generated from the pay period's due date. So, the only focus for this option is, if you ever want to change the loan's late fee collection method, you can set it to not incur any late fees. Click Save if you'd like to set this option.

For the second option "Charge Late Fee as a Percentage of Payment", the options are: "What is the per period Late Fee Percentage?", and "What is the Grace Period?". This allows the lender to change the late fee percentage and/or adjust the number of days for the grace period. Make changes to those options if you'd like and then click Save.

For the third option "Charge Late Fee as a Flat Fee for the Period", the options are: "What is the per period Late Fee Amount?", and "What is the Grace Period?". This allows the lender to change the originally set late fee method to a flat fee and set the flat fee as well as adjust the grace period.

Note: If your company policy were to change, you can always go back and change to either of the three late fee collection methods without worry. If there is a late fee due without a payment made toward it, and you would like to change the flat fee or percentage on the principal due for the month, then you can change the late fee collection method just before accepting payment to collect dues accordingly for a late pay period.