Ideas for the Mambu Banking Engine

An option to cap Arrears Accounts when total Interest, Fees, Penalties exceed X % of the original loan amount

What: An additional capping option under the Loan Product Internal Control that would allow to cap Arrears Accounts when Interest, Fees, Penalties are more than X % of the ORIGINAL loan amount given to a client (as opposed to the current option, which calculates the same cap but only on the outstanding/ remaining principal balance).
 
For example, if a client borrowed £1000, then interest, penalties and fees accrued on that amount in total must not exceed £1000. 
 
Why: This is a legal requirement in UK for short-term lenders. According to FCA: borrowers must never have to pay back more in fees and interest than the amount borrowed. 
  • Dorota Nosal
  • Dec 1 2016
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