Continuing with the Title Loan Tab...The "Renewals" area is from Max Number of Renewals to Maximum Loan Amount.
If you are not doing manual renewals, all of the below listed fields should be "blank".
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1 - Max Number of Renewals - "blank"
2 - Minimum Finance Charge(Percent of Amount Financed) - "blank" 3 - Min Renewal Payment:Fees Plus (after "of" leave as "Original Loan Amount") 4 - starting with renewal no. - "blank" 5 - Allow principal increase with renewal? - "blank" 6 - Print Renewal Notice with Receipt? - "blank" 7 - Principal reduction calculation method for automatically renewing accounts - "blank" 8 - Add scheduled principal reductions to the minimum payment for automatically renewing accounts? - "no check mark" 9 - Automatically notify user if a scheduled principal reduction has not been met? - "no check mark" 10 - Minimum Loan Amount - "blank" 11 - Maximum Loan Amount - "blank" |
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If you are doing manual renewals...
Max Number of Renewals - How many renewals are legal. It differs from state-to-state. If there is no limit put "999".
Minimum Finance Charge(Percent of Amount Financed) - Is only used for Missouri (only 75% in Missouri)
Min Renewal Payment:Fees Plus (the percentage of the Original or Current Loan Amount - could be 10% or 20%, whatever your state allows) of "Original Loan Amount" starting with renewal no. (enter the renewal number that your state allows you to start charging a renewal fee-it could be "2" or "3" etc.)
Allow principal increase with renewal? - Should be "checked" if the person can borrow more money as part of the renewal process.
Print Renewal Notice with Receipt? - Most states don't require a renewal notice other than Tennessee. If in Tennessee, select either "Notice1" or "Notice2"
NOTE: If you have an internet connection, you can "Click Here" to view all contracts, letters, forms, reports, receipts and notices that are automatically generated by Title Loan Professional Plus.
Principal reduction calculation method for automatically renewing accounts - If you are going to require principle with the payment, if you select "Periodic" it means that the customer has to pay the mandated percentage with each renewal. If you select "Cumulative" as long as the customer is on or ahead of schedule the program will not enforce that rule as long as they are not falling behind schedule. When in doubt, use "Periodic". Some states are picky.
Add scheduled principal reductions to the minimum payment for automatically renewing accounts? If you want the minimum payment to be just the interest, this must be unchecked. If checked, the payment will include the minimum reductions.
Automatically notify user if a scheduled principal reduction has not been met? If checked, whenever you take a payment, if the customer has not paid all the principal payment that they should, you will receive a warning message.
Minimum Loan Amount - Only applies if you have a certain amount you don't want to loan less than. Otherwise, leave blank.
Maximum Loan Amount - Only applies if you have a certain amount you don't want to go over. Otherwise, leave blank. Some states like Tennessee have a limit, you can't go over $2,500.00.
Display past due principal with each installment loan payment? If you want to see the Past Due Principal with each installment loan payment. this must be "checked". If you do not want to see the Past Due Principal with each installment loan payment, this must be "unchecked".
Convert outstanding interest to principal at the end of each term (Non-Installment Loans)? This is not allowed in most states.
Restore fee to the default fee if a customer is past due? "Unchecked"
Require a minimum payment starting with renewal number? If you renewal number where you want to start requiring a minimum payment, enter the number.
Loan length in days. Enter 1 for due dates on the same day each month. When in doubt, 30. Some states you can enter "1" to keep payments the same date. The number must be legal in your state.
Change account status to 'to be repoed' after how many days late? If you don't want the program to change the loan from "Past Due" to "To Be Repoed", you want a large number in this field like "999". If you want the program to move a customer from "Past Due" to "To Be Repoed" you need to tell the program how many days late. If you are doing a 30 day loan and you want to take the customer to "To Be Repoed" in 45 days, you would put "15".
Title Loan Contract - Select a contract for your state. If not in the United States, select an "Any State" contract.
Contract Printer - Select the printer you want the contract to go to.
Receipt - Receipt 5 is our most common receipt. If you are in Virginia, Kansas or Iowa, we recommend Receipt 6.
Renewal Receipt - Only used if you are doing manual renewals.
Print Checks for Title Loans? Should only be checked if you have laser checks compatible with our software. If you need to order checks that are compatible
Print Power of Attorney? Will print a Power of Attorney with the contract. This is used should you need to go to court.
Print Privacy Notice? Required by law!
Print Affidavit of Fact? Not normally used. It is if a customer has a different name or alias. It basically says the customer has two or more names.
Print Reminder to Borrower? Reminds the borrower that this is a high interest rate loan and should you have other sources of credit, you should probably use them. This is to keep the customer from saying they didn't know what kind of loan they were getting into.
Print No Liens Letter? A letter stating the borrower has no prior liens against the vehicle.
Print Title Key Receipt at payoff? A form that says the borrower did receive his title and keys upon paying the loan off.
Notice To Title Loan Borrower? Reminds the borrower that this is a high interest rate loan and should you have other sources of credit, you should probably use them. This is to keep the customer from saying they didn't know what kind of loan they were getting into.
Non-Renewal Notice? Only used in Tennessee if you want to print a form with the payment saying if the customer doesn't meet the terms of the agreement, the loan will not be renewed.
Renewal Notice? Only used in Tennessee.