Regulatory Set Rules

This page details the rules that a loan follows when each line of a regulatory set is changed.

Buy Ticket Hold Period

• Default Value sets the minimum number of days to hold all buy items before they can be priced. These hold periods are often defined by a store's jurisdictional police department.
• Different categories can be set for different hold periods by enabling the Variable checkbox, choosing ITEM TYPE from the Based On drop-down selector, adding a record for a specific category, and defining the minimum number of days to hold items within that category. 
• If your store only requires hold periods on certain categories of items, set your Default Value to '0' and define the Amount for each relevant category.
• Any items within a sub-category will receive the same hold period as their parent category (Example: Mens Accessory items are subject to the same hold period as all Fashion items, unless the hold period for Mens Accessory items is specifically defined higher or lower than Fashion items).

Transaction note: All items on a buy ticket will be given a hold period equivalent to that of the item with the highest Amount

Example: Default value is 0, Jewelry is 10, Firearms is 30. If a cordless drill, a gold necklace, and a rifle are all taken in on the same buy ticket, all three items will be assigned a 30-day hold.

If you would like to release the other items sooner, you will need to take them in on separate buy tickets: multiple tickets can be created within the same transaction.

Pawn Police Hold Period

• Default Value sets the number of days to hold a loan/buy when it is placed on police hold. After this period of time, it will revert to its prior status.

This value can be changed from the default when placing the item on hold within Bravo.

Pawn Max Amount

• Default Value sets the maximum amount of a single pawn, as mandated by law in your store's specific police jurisdiction. This CANNOT BE ALTERED.

Pawn Interest Period

• Default Value sets the number of days in each interest period.

• If the Calendar Month checkbox is enabled, interest will be calculated on the corresponding date for each succeeding month. If the succeeding month does not have a corresponding date, the period will end on the last day of the succeeding month. 

  Note: Enabling Calendar Month checkbox will change the Default Value in Pawn Term line to specify months, as opposed to days.

• Selecting "Months always" under Calendar Month Method will result in loan interest being calculated as described above for the entire life of the loan.
• Example: If a loan is written on January 30th with a 1-month pawn term, the first interest period will end on February 28th; The following interest period will end on March 30th, etc.
• Selecting "Months until term then 30" under Calendar Month Method will result in loan    interest being calculated as described in the "Months always" option, until the loan reaches its Pawn Term. Following the Pawn Term, interest on the loan will calculate every 30 days, regardless of the number of days in the month.
• Example: If a loan is written on January 15th with a 1-month pawn term, the first interest period will end on February 15th, but the second interest period will end on March 17th.
• Selecting "Months/Term in Days" under Calendar Month will result in the loan interest being calculated like how "Months Always" does, but the Pawn Term is going to be set in days.
  • Example: Pawn Term is set to 90 days. If a loan is written on February 15th, the pawn interest collection will be on the 15th of each succeeding month, however the loan will end on May 13th as opposed to May 15th.
• ​Default value can be bypassed by enabling the Variable checkbox. Users can select Ticket Amount or Ticket Age in the "Based On" drop-down selector. Once selected, click "Add Record" to select Starting Point and Amount.
• ​Example: With the records shown in the image below, a $100 loan with 20% interest would be charged $20 interest for the first 20 days, $20 interest for days 21 to 30, and $20 interest for days 31 to 60. At the end of all 60 days for a $100 loan at 20% interest, the customer would be charged $60.

Pawn Interest

• Default value can be a dollar amount or a percentage of the pawn amount. The "%" checkbox must be enabled for the latter.
• Default value can be bypassed by enabling the Variable checkbox. Users can select Ticket Amount or Ticket Age in the "Based On" drop-down selector. Once selected, click "Add Record" to select Starting Point and Amount.
• If you choose to enable the "Tier?" checkbox in a record, you will be given the option to further dictate the interest calculation within that record. Adding tiers to interest calculation is typically only useful when interest is Based On Ticket Age, because records added in a Tiered Interest Group always base Starting Amount by the loan amount.
  • With this 'Tier' being set up, you will have 'Groups' pop up next to the Ticket Age. 'Groups' make it so that you can do TicketAmount, so that you can have specific Interest charges at different times for different principal amounts. You have a maximum of 4 'Groups' to use.
• Example: Loans between $0.00 and $30.00 have a flat default pawn interest of $5 and loans above $30.00 have a flat default pawn interest of $10, but loans between $30.01 and $40.00 actually calculate interest at 30% of the loan amount.

NOTE: If the "Calendar Month" checkbox is enabled under Pawn Interest Period, and you choose to make your Pawn Interest Variable Based On Ticket Age, you will need to pay special attention to the behavior of interest charges between ticket ages 28-31. These charges may vary widely, depending on the ticket age specified and the month in which a loan is written. 

If you are doing "Calendar Month: Month Always" it is recommended to do the Interest Variable based on Ticket Age: Months.

Pawn Interest Rebate Threshold

• Default Value - The amount of Interest that will be required to collect before the Interest/Fees begins to rebate.

  • Example: if the Default Value is set to $10, the loan must accrue $10 before the rebate will begin.
• Start on Day # - The setting, whether only days or a combination of Months & Days that will be required for the rebate to begin.
  • Example: If the Start on Day # value says 61 days, the interest will not begin to rebate until on the 61st day.
• Principal Over - The Principal amount the loan has to be over in order to rebate. Anything under this will not rebate.
  • Example: Principal Over is set at $50, any loan $49.99 and under will never rebate, anything at $50 or over will rebate.

Normal Prorate:

• Prorated rebate per day is always calculated as 1/30th of the pawn interest. The system will subtract, from the period’s total [Pawn Interest], the per-day rebate amount multiplied by the number of days until the interest period ends. It will NOT calculate prorated interest for the number of days into an interest period that the loan has existed.
• Example 1: [Default Value] is $0.00 and the [Pawn Interest Rebate Threshold] is set to [Start on Day #] “0 months + 0 days”. 
• Therefore On a $100 loan with 20% [Pawn Interest] and a 30-day Pawn [Interest Period], the interest due on day 4 will be:
  • [Total Pawn Interest] – [Daily Interest Charge]* [# of days early]
  • ***to find the [Daily Interest Charge] divide the [Total Interest] by 30 (regardless of interest period setting)***.
  • = $20 – (20/30) * 26
  • = $20 - (0.67) * 26
  • = $20 – $17.33
  • = $2.67 due when Ticket Age = 4 day
• Interest on the loan in Bravo will look like this:
  • Interest Rebate ($17.33)
  • Interest $20.00
  • Total Due $2.67

• When the Total Pawn Interest exceeds the [Default Value], the system will rebate a prorated interest beginning on the month/day specified.
  • In Example 1 above, if the [Default Value] remained $0.00, but the [Pawn Interest Rebate Threshold] were set to [Start On Day #] “0 months + 10 days”, $20.00 would be due from the customer on day 4. Under this configuration, interest would not begin to rebate until the Ticket Age reached 10 days.
  • In Example 1 above, if the [Default Value] were $3.00 and the [Pawn Interest Rebate Threshold] remained set to [Start On Day #] “0 months + 0 days”, $3.00 would be due from the customer on day 4 because the rebated pawn interest would not yet have exceeded the [Default Value].
  • In Example 1 above, if the loan were for $20.00 and the [Default Value] were $5.00, the customer would be charged $4.00 whenever they redeemed/renewed the loan, regardless of the Ticket Age, because the total $4.00 [Pawn Interest] amount would not exceed the [Default Value].
• If the Ticket Age has not yet exceeded the [Start on Day #], the total [Pawn Interest] will be due upon redemption/renewal.
• If the total [Pawn Interest] amount exceeds the [Default Value] and the rebated pawn interest is less than the [Default Value], the [Default Value] will be charged to the customer upon redemption
• If the total [Pawn Interest] does not exceed the [Default Value], interest will not be rebated. The total [Pawn Interest] amount will be charged to the customer upon redemption/renewal, even if the loan is redeemed/renewed prior to the end of the [Pawn Interest Period].
• If you want to make sure loans that are small do not get rebated because the [Default Value] is set very low, you will need to make the [Principal Over} equal to the amount you would like prorating interest to START at.
  • Example: [Principal Over} is set to $50 and [Default Value} is set to $5. Customer has a pawn for $48. This loan will never prorate.

Prorate Year

• Charge interest at a daily rate of: [Interest] * 12 months / 365 days * [# of days into Pawn Interest Period]
• This version of prorating only works with Interest. No Fees will be prorateable
• Example 2: [Default Value] is $0.00 and the [Pawn Interest Rebate Threshold] is set to [Start on Day #] “0 months + 0 days”.
• Therefore On a $100 loan with 20% [Pawn Interest] and a monthly [Pawn Interest Period], the interest due on day 4 will be:
• [Pawn Interest] * 12 / 365 * [# of days into interest period]
• ($20 * 12 / 365) * 4
• ($240 / 365) * 4
• $0.66 * 4
• $2.63

 Prorate 30 days (Indiana)

• Indiana is required by law to prorate how many days into the interest period a loan is. Whereas the Normal method above works to rebate the interest based on how many days remain in the interest period.
• This setting is designed to work with a Calendar Month setting only.
• Example 3: [Default Value] is $0.00 and the [Pawn Interest Rebate Threshold] is set to [Start on Day #] “0 months + 0 days”.
• Therefore On a $100 loan with 20% [Pawn Interest] and a monthly [Pawn Interest Period], the interest due on day 4 will be:
  • [Total Pawn Interest] - [Daily Interest Charge] * [# of days into Pawn Interest Period]
  • ***to find the [Daily Interest Charge] divide the [Total Interest] by 30 (regardless of interest period)***.
    • $20 - ($20/30) * 4
    • $20 - $0.6666667 * 4
    • $20 - $2.6666668
    • $17.33

Pawn Min Interest Charge

• [Default Value] sets the minimum amount that can be charged for interest per period.
  • Example: A loan is worth $50. my [Pawn Interest] is 1%, which gives me $7.50 per interest period. If I set the [Pawn Min Interest Charge] to have a [Default Value] of $10. this loan will essentially be overwritten by this and charge $10 each interest period instead.
• [Default Value] can be bypassed by enabling the Variable checkbox. [Pawn Min Interest Charge] can be Variable based on [Ticket Age]. If the ticket age falls between two start values, its amount will follow the rules of the lower ticket age.

No Interest Charge

• No interest charge during the first days of specific periods. Affects latest period only.
• Designed to only work on Redemption values. Renewals and Extensions will still show the interest as normal.
  • Example: Loan interest per month is $20. The store doesn't want to charge their customer for the first 5 days of every period after the first. So when the customer comes in 3 days into the second period, the charge is only $20 to redeem instead of $40 due to the $20 for both periods.
• To have it off, the [Starting on period] needs to be 9,999,999
• This setting will repeat for each period after it starts. So if the [Starting on period] setting is 3, it will start in period 3, but will continue to apply for every period after that.
• This setting came out in v2.5.1.66

Pawn  Max Charge

• [Default Value] sets the maximum amount of total charges per period.
• Can be Variable Based On [Ticket Age] or [Ticket Amount].

Start loans on day zero

• Designed for New York stores to use in accordance with their laws.
• When set ticket age calculator adds 1.
• The expiration date, pull date, notice send date will all be one day earlier.
  • Example 1: A loan starts on 3/1 and has a 30 day term. Due date will be
    • ON: 3/30
    • OFF: 3/31
  • Example 2: A loan starts on 6/1 and has a month long term. Due date will be
    • ON: 6/30
    • OFF: 7/1

Pawn Term

• When [Pawn Interest Period] is set to [Calendar Month], [Default Value] sets the contract number of Pawn Interest Periods, or months, for the loan. This excludes the grace period.
  • Unless you are using [Months/Terms in Days], in which case the [Pawn Term] will still be in days. Cannot add a variable to [Pawn Term] if this is selected.
• When [Pawn Interest Period] is not set to [Calendar Month], [Default Value] sets the contract number of days of the loan, exclusive of the grace period.
• When [Pawn Interest Period] is not set to [Calendar Month], [Pawn Term] can be Variable based on [Ticket Amount]. If loan amount exceeds a start value, its [Pawn Term] will adjust to the corresponding amount.

Pawn Grace Period

• Default Value sets the number of days after the end of the Pawn Term that a loan is held before a notice can be sent.
• Can be Variable Based On Ticket Amount
• Enabling the "Do not include on renewals" checkbox will cause the loan to be subject to a grace period only before the loan is renewed.

If a [Pawn Grace Period] is chosen, there is no way you can bypass it.

Pawn Notice Required Amount

• Loan amount must exceed the Default Value to be eligible to receive an overdue notice.
• Loan notices are sent after the Maturity Date and Pawn Grace Period have passed.

Pawn Notice Hold Period

• Default Value sets the number of days that loan items must be held, following the sending of a loan notice, before the loan can be expired.
• Loans are only subject to the Pawn Notice Hold Period if their loan amounts exceed the Pawn Notice Required Amount. If they do not, they can be expired following the Maturity Date and Pawn Grace Period.

Min Total Charge

• Default Value sets the minimum total charge overall for interest per transaction
• You cannot have fees able to be applied in order to use this setting. Fees must be either $0.00 or not have any fees able to be used.

Loan Extension Method

• Controls which method is used when performing loan extensions.
• A store may perform Extensions or a Partial Payments on loans, but not both.
• On a loan extension, the customer chooses to extend the loan by a specific number of days. For every day that the customer wants to push the loan's due date out, that customer must pay the same number of days' worth of interest & relative fees off of the beginning of a loan. If a customer pays to extend a loan by a large number of days, but then comes in to redeem much earlier than anticipated, they may receive some of their interest & fee payment back (as an Interest and or Fee Rebate) within the transaction.
• Extension example: Loan is written on 1/1/18, and it is due 30 days later, on 1/31/18. If the customer comes in on 1/10/18 and wants to extend the due date out by 60 days - effectively changing its Maturity Date to 4/1/18 - they will need to pay the interest & fees for the period of time between 1/1/18 and 3/2/18. Paying for the first 60 days of interest & fees will add 60 days to the Maturity Date. If the customer then comes back in on 1/15 and redeems the loan, the system will refund the interest & fees paid for the second interest period.
• There is another method of Extension which is called Buy Days from End. This pays for FUTURE dates. This can be applied to either Regular Extensions or to Partial Payments.
• On a partial payment, the customer's payment goes toward the interest & fees due on the loan, and then any remaining amount paid will reduce the Principal Amount of the loan. When the customer's payment pays off a month of interest & fees, the Maturity Date of the loan is pushed out by one interest period.
• Partial Payment example: Loan is written on 1/1/18, and it is due 30 days later, on 1/31/18. If the customer pays all of the interest & fees due, the system will automatically add 30 days (one Interest Period) to the Maturity Date. New Maturity Date would be 3/2/18.

Renewal Method

• Controls which method is used when performing Renewals.
• A customer may pay all outstanding interest & fees due on a loan in order to renew a loan. Essentially, the pawn is redeemed and then reloaned, and the loan is treated as a brand new loan.
• Under the "Normal" Renewal Method, this renewed loan's Loan Date will be the day that the renewal transaction takes place.
• Normal Renewal Method example: Loan is written on 1/1/18, and it is due on 4/1/18. If renewed on 1/15/18, the renewed loan's Loan Date would be 1/15/18, and its new due date would be 4/15/18.
• Under the "End of This Period" Renewal Method, the renewed loan's Due Date will be the day following the last day of the current period the loan is in.
  • End of This Period Example: Loan starts on 1/1/18 and is due on 4/1/18. If renewed on 2/15/18, the renewed loan's Loan Date would be 3/1/18.
• Under the "End of Final Period" Renewal Method, the renewed loan's Loan Date will be the day following the original loan's maturity date.
• End of final period Renewal Method example: Loan is written on 1/1/18, and it is due on 4/1/18. If renewed on 1/15/18, the renewed loan's Loan Date would be 4/1/18, and its new due date would be 6/30/18.
• Under the Prompt for Start Date Renewal Method, the renewed loan will be able to choose between ANY of the above Renewal Methods within the renewal transaction.

Consignment Hold Period

• Default Value sets the number of days to hold a consignment before it can be priced for sale.
• Consignment Hold Period is typically required by law, and allows time for police reporting
• Can be Variable Based On Item Type.