Account Payment Arrangements; Accounts with Residual Value and/or Payments in Advance not calculating correctly

In the Payment Arrangement wizard, an Account with a "Residual Value" may not calculate correctly. It depends upon whether or not the Account is pre or post Maturity and whether or not Payments are in Advance.

Some examples are noted below:

1. If a Final Payment date is set, either On Maturity or On Set Date, the Arrangement includes a Payment on the Final Date when Payments are in Advance. This is incorrect, it should not include a regular payment on that date - but the Residual is still due.

2. If a Final Payment date is defined using the "On Set Date", the Arrangement will always revert back to on the Maturity date.

3. If a Final Payment date is not set, the Arrangement does not calculate properly, it may state Insufficient Payments.

When an Account has a Residual Value it means this value will be due on Maturity. This also means there will always be a balance to charge Interest on pre Maturity.

Therefore the following changes have been made to the Payment Arrangement wizard when an Account has a Residual Value:

When the Account is pre Maturity you can enter the Arrangement as before, but the Final Payment date cannot be changed - this block of information is now hidden in the Payment Arrangement wizard. The Residual Value is always due on the Maturity date. This may mean the "final payment" occurs before the maturity date.

When the Account is post Maturity you cannot enter a Payment Arrangement. You should consider Restructuring or Refinancing the Account.

Note, when the Account with a Residual Value is post Maturity, Interest will still be charged and the existing regular payments shown and Direct Debited. It is expected that Accounts with a Residual Value will be dealt with and closed at the Maturity date and not left open after this date.