Double Dipping on Collateral Loans…California Financial Code 21201.5
Conforming to California Financial Code 21201.5 and avoiding Double Dipping
Resetting Collateral Loan Dates for Contracts in California
There are 4 options available in PawnMaster to California collateral lenders with regards to taking payments BEFORE the required 4 month contract. In all 4 options, your system must be set up to “rewrite” loans and assign a new ticket number when payments are taken. On the Payments tab under the Pawn/Buys tab from the Admin/Store Setup/System Options menu choice, select “Reset the Date-in to date of payment after each payment?” and “Assign a new ticket number?”
Option 1: You only collect daily prorated charges up to the payment date. The new loan will start on the payment date.
How: On the Prorating tab under the Pawn/Buys tab from the Admin/Store Setup/System Options menu choice, set up PawnMaster to prorate the loan service charges on a 30 day basis.
Option 2: You collect charges for the entire period. The new loan will start on the payment date.
How: On the Prorating tab under the Pawn/Buys tab from the Admin/Store Setup/System Options menu choice, set up PawnMaster to NOT prorate the loan service charges.
Option 3: Make the active date (date in) the ending date of the original 4 month contract period, regardless of whether the payment is made before or after this date.
How: On the Payments tab under the Pawn/Buys tab from the Admin/Store Setup/System Options menu choice, set up PawnMaster to reset the date in to the End of Original Contract. Enter which period you wish to start the resetting of the date in and for how many periods. (Ex. Entering a “4″ for the starting period and a “2″ for the number of periods will reset the date in to the end of the 4 month contract period when a payment is made in the 4th or 5th period.).
Option 4: Make the active date (date in) the ending date of the period which is paid.
How: On the Payments tab under the Pawn/Buys tab from the Admin/Store Setup/System Options menu choice, set up PawnMaster to reset the date in to the End of Period Paid. Enter which period you wish to start the resetting of the date in and for how many periods. (Ex. Entering a “4″ for the starting period and a “2″ for the number of periods will reset the date in to the end of the period paid when a payment is made in the 4th or 5th period.).
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