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NC Late Fees - How To Apply To New Accounts

In July, the state of North Carolina unexpectedly passed a law to increase the late fee to a flat $15.  Now in October, the contracts are finally starting to catch up and you may now start charging that amount on new accounts.  If you still have the desire or need to use an old contract YOU MAY ONLY CHARGE THE AMOUNT SHOWN ON THE CONTRACT THE CUSTOMER SIGNS! The global setting in Dealer Solutions affects all accounts, but since the old accounts still need to be charged 5% with a maximum of $6, how can this be accomplished?

The answer is to use the "Manual Override" option on the BHPH screen in the deal!  (Note: We will soon release a tool that will manually override all of your old accounts so you do not have to perform this action on new accounts)
 
 Pro TipAre you aware that you aren't allowed to let someone remain past due simply because a portion of their regular payment went to late fees, according to NC law?  This becomes even more important with a flat fee!  For instance, if someone's regular payment is $100 and they have a $15 late fee, if they only hand you $100, you must send all of that to cover the installment that is past due first.  If you were to allow the fee to be collected first and only $85 to go towards the payment, then they may get hit with another fee later for being $15 past due.  Depending on your settings, Dealer Solutions may try to send the first part of the payment towards fees, so be vigilant or change your settings so that fees are only collected manuallyClick here for an article on using those settings >>


When setting up the payment during a deal, simply check the Manual Override box at the near the bottom of the window, then set it to 0%, $15 minimum/flat, $0 maximum (you may also put $15 for Max, it doesn't matter either way).  You may also choose a lower amount, if you wish as you are not required to charge $15, but that is the maximum you may charge.  $15 on weekly payments can get someone really far behind in a hurry, so use your own discretion!



For additional consideration, charging a flat $15 on accounts with very low regular payment, ones that are only partially past due, or as little as $1 short may reduce customer morale and loyalty.  Read this article about the Payment Leeway setting, but also consider adding a percentage with a maximum of $15.  This percentage could be whatever you feel is appropriate, and the settings could look similar to this:





 

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