What: A possibility to identify separately and report on the "Late Interest", i.e. amount of interest accrued only on the overdue outstanding principal balance (as opposed to "Regular Interest", i.e. interest accrued on the outstanding but not yet late principal balance).
Why: This is a regulatory requirement in the UK for all payday lenders: the CMA (Competition and Markets Authority) order requires that all payday lenders in the UK provide a customer a “summary of the cost of their borrowing” which includes a breakdown of how much the loan has cost the customer:
- total interest charged,
- arrears interest (i.e. late interest) charged due to late payment,