Enhanced carried-balance fee accrual settings

We have added support for two existing configuration flags that previously had no effect on carried-balance fee assessments—one on the bucket and one on the fee.

Compound Past Interest Cycles (bucket setting): When disabled, previously charged interest from prior cycles no longer counts toward the interest-bearing balance used to determine the fee tier.

• When enabled, prior interest is included as it previously has been.

Interest Bearing (fee setting): When disabled, the fee amount is excluded from the interest-bearing balance, preventing non-interest-bearing fees from increasing the balance used to select the fee tier.

• The fee will still post to the account balance, but it will not impact the fee tier.

What changed?

Before this update, both configuration flags listed were always treated as enabled when the calculator built the interest-bearing balance used to select the fee tier—regardless of lender configuration. Both flags now align with lender-configured standard interest charges, so the carried-balance fee assessment mirrors your exact product model.

Additionally, interest-bearing fees now apply the same balance exclusions that standard interest does: bucket abatement, transaction abatement, disputes—past and active—and the keep-accruing-interest flag. This logic applies across all four computation methods: 1. Adjusted Balance 2. Average Daily Balance 3. Previous Balance 4. Statement Balance

How can I use it?

You can use this added support to ensure fee assessments on buckets that use the Carried Balance Fee interest charge method align directly with your interest model.

Where can I find it?

You can configure settings at both the Program and Account levels.

Compound Past Interest Cycles

To configure the Compound Past Interest Cycles setting at the Program level:

1. Navigate to Settings > Programs > select a program > Account Setup > Buckets.
2. While creating a new bucket or editing an existing one, check the Compound Past Interest Charges? checkbox, and click Save.

To configure the Compound Past Interest Cycles setting at the Account level:

1. Open an individual LOC account, then navigate to Account Settings > Setup > Buckets.
2. While creating a new bucket or editing an existing one, check the Compound Past Interest Charges? checkbox, and click Save.

Interest Bearing

To configure the Interest Bearing setting at the Program level:

1. Navigate to Settings > Programs > select a program > Account Setup > Late Fee Setup.
2. Click the pencil icon to edit, fill in all required fields, check the Late Fees are Interest Bearing? checkbox, and click Save.

To configure the Interest Bearing setting at the Account level:

1. Open an individual LOC account, open the “Log” dropdown menu in the upper-right side of the page, and select Charge.
2. Fill in all required fields, check the Interest Bearing? checkbox, and click Save.

How can I test it?

Follow the steps above to configure both settings at either the Program or Account level. Once you do, simulate a carried-balance fee assessment and then confirm that the calculated interest-bearing balance and resulting fee tier adjust dynamically as expected.