Unapplied Loan Balance Notice
The Unapplied Balance Notice is a notice to notify the Borrower that his or her partial payment has not been applied to the loan account’s typical balances (interest, principal, etc.) and instead has been applied to an unapplied balance on the loan account. The Unapplied Balance Notice batch application is designed to produce a notice whenever a payment is made to a loan account where partial payments are not allowed and the funds are then applied to the unapplied balance on the loan account, as opposed to going to late charges, interest, principal, etc. The Unapplied Balance Notice batch application will also generate a summary report for the Financial Institution listing all loan accounts where a notice was generated.
The Unapplied Balance Notice application provides the Financial Institution with several benefits, including:
- Ability to generate a notice to send to Borrowers notifying them that their partial payment is in an unapplied balance until a full payment amount is made.
- Ability to generate notices for delinquent loan accounts exclusively or both delinquent and non-delinquent loan accounts.
- Capacity for adjusting date ranges to accommodate a business practice of generating notices daily, weekly, or any date range specified by the Financial Institution.
- Ability to exclude the application for a specific loan product or account.