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#1566118 - 06/16/11 08:17 PM Calculating amount of interest to be forgiven
BethT Offline
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Joined: Jul 2010
Posts: 5
In regards to forgiving interest at a rate in excess of 6%, I was wondering if there was some type of Calculator tool available to help calculate the amount of interest that should be forgiven or does someone know of a website that can give guidance on this. How do you deal with the service charges, renewal charges, fees, or other charges that is included in the "interest" term.

Here is a scenario. If a customer went into the military in April 2010 and he has requested relief now. If it was just a matter of decreasing the rate and reamortizing the payment that is one thing but how do you account for the other charges and fees?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1566216 - 06/16/11 10:33 PM Re: Calculating amount of interest to be forgiven BethT
Andy_Z Offline
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You reduce your rate to 6% and disallow other fees such as late fees. As you indicate thay are "interest" and would be usurious.

Other charges and fees you charged since April 20101 would have to be refunded unless you go below 6% and do the math to ensure you don't yield >6%.

(If you read the SCRA itself, you actually calculate 6% and waive the difference between that and what you would have charged.)
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