What: An option to decide if penalties should be calculated:
(a) from the scheduled repayment due date, i.e. including the arrears tolerance period, which is how the ‘Overdue Principal’ and ‘(Overdue Principal + Overdue Interest)’ penalty calculation methods currently behave
(b) from the moment the account goes into arrears, i.e. excluding the arrears tolerance period, which is how the ‘Outstanding Principal’ penalty calculation method currently behaves
In both cases, the penalty tolerance period should be considered (if longer than the arrears tolerance period), i.e. the penalties should be applied after the penalty tolerance period passes. However, there should be an option to determine the number of days used to calculate the amount of penalties, as described above.
Why: To provide more flexibility in supporting various use cases, e.g.