Regulatory Up-Front Fee

The Up-front Fee is a regulatory fee which is charged to the customer upon ticket creation. To configure this fee, go to System Configuration > Regulatory tab, edit a regulation with the "Effective Date" in the future, select the Fees sub-tab, and scroll down to Up-front Fee. Here are the configurations applicable to the Up-front Fee:

Default Value

• This value is applied to tickets that do not meet any of the criteria specified by the Variable records (if enabled).

'%' Checkbox

• Enable this to change the Default Value/Variable record values to calculate as a percentage of the loan amount instead of using a specific amount.

'Variable' Checkbox

• Enable this to allow the fee to be configurable based on Item Type, Ticket Age, Ticket Age (Months), or Ticket Amount.

'Method' Options

• This determines how to charge the Up-front fee to the customer. Options defined below:
  • "ADD TO AMOUNT FINANCED"
    • The amount paid to the customer is equal to the sum of the Pawn Amount of each item on the ticket, but the Ticket Amount is greater than this sum by adding the Up-front fee.
    • The customer pays interest and fees on the Ticket Amount, which includes the Up-front fee.
    • The customer effectively pays this fee when the loan is written, but if the loan expires, the fee will be backed out of the corresponding general ledger account.
    • This fee is not applied to Buys.
  • "SUBTRACT FROM AMOUNT PAID TO CUSTOMER"
    • The amount paid to the customer is equal to the sum of the Pawn Amount of each item on the ticket minus the Up-front Fee amount. The customer receives less than the Ticket Amount because a portion of it is used to pay for the Up-front Fee.
    • Because the fee is paid immediately, the customer doesn't have to pay interest or fees on the Up-Front Fee. They simply pay interest and fees on the sum of the Pawn Amount of the items on the ticket.
    • The fee is paid off completely by the reduction of amount paid to the customer, so if the loan expires, the fee is not backed out of its corresponding general ledger account.
    • This fee is applied to Buys as well as Loans.

'Frequency'/'Event' Options

• Each combination of 'Frequency' and 'Event" specify a rule for the fee. Below are the specified rules for viable combinations:
  • NOT APPLICABLE/NOT APPLICABLE
    • The fee will never be applied to any transaction.
  • FIRST PERIOD ONLY/FIRST PERIOD ONLY
    • The fee will be applied when the ticket is written, but not when the ticket is renewed.