As a reminder, the Online LOS Improvements Phase 1 project affects all online credit card users, regardless of your LOS, and anyone who uses % for payment for their LOCs. Before this project went in on January 28th, 2024, the review date and maturity date for both credit cards and LOCs were being set according to the configuration “# of payments” at your product level in Tool #470. For example, if you had a term of 36 months configured in your product, the review/maturity date were being set to follow this configuration.
Following the implementation of the Online LOS Improvements Phase 1 project, the functionality now is that if a % is entered at the product configuration, the system will still be required to run the loan through the normal amortization steps in order to establish the payment and related data points to populate the loan record. This means that the maturity and review date will NOT be set according to your “# of payments” setting in the loan product configuration. Instead, the system will record what the maturity date had to be in order for your desired payment amount to be calculated, which may be further into the future than you expect (if the loan had insurance/debt protection, that maturity date may be even further out). For credit cards this is generally not a concern, unless your credit union has the “Use review date for disbursements” flag activated in the loan category. For LOCs, however, you may need to adjust the maturity and review dates on these loans manually, if you want them to reflect your standard “term.”
For full details on how this update affects credit cards and lines of credit, please review this PDF.
What Lies Ahead, Plus Our Upcoming Training Event
Our teams are having internal discussions about whether there is anything we can do in an automated fashion that will satisfy both the system’s need to amortize the loan, as well as your wish to set a term that has nothing to do with the actual payment that is calculated using the new method. Stay tuned for more news once we complete our analysis and are ready to share our plans.
We would also like to invite you to join us for a training session, where we will discuss key items from the project. Click the button below to sign up.
Thursday, March 28th
3:00 PM – 4:00 PM ET