What: there are two business use cases when Overdraft accounts should go into Arrears that are not currently fully supported by Mambu, as follows:
- Overdraft limit is reduced from €1,000 to €800 and the user is thereby €200 in arrears. Currently, the overdraft does go into arrears but no days in arrears are counted because the user still has an overdraft limit with no expiry date (or a date set in the future)
- Client uses his overdraft limits to the full extent (withdraws €800 from an account with a€800 limit). After the interest application by the system, the account balance decreases below the allowed overdraft limit. The overdraft should come in arrears and the days in arrears should start counting.
- The "Amount in Arrears" should always be equal to the balance that exceeds the overdraft limit.
- This logic should apply even if the limit is set to 0 (or if there is no limit set, but the account is in overdraft, i.e. with a balance <0)
- The "Days in Arrears" should start counting as soon as "balance" < "overdraft limit" at the end of day. Each following day is added to the count. "Days in Arrears" should be reset to zero as soon as "balance" becomes >= "overdraft limit".
Why: as a general rule, an overdraft account is considered "in arrears" as soon as the overdrawn balance exceeds the allowed limit. Mambu currently supports some scenarios when this can happen, but not all of them, as outlined above.