This article will explain how additional charges can be added to accounts and how they impact minimum monthly payments.
New Purchase Eligibility
The consumer Account must have an open line of credit with enough availability to support the new purchase amount. The Account must also be in good standing (Active Current).
Consumers and Merchants can see the Credit Available and account status in uPortal360.
New Payment Amount Calculation
When a consumer is processing an additional charge they will be presented with 1 to many new payment options (depending on the Finance Program). The new payment is found by adding the Account Balance plus the New Finance Amount and then subtracting the scheduled monthly payment.
Example:
Current Balance: $2994.80
(+) Additional Charge - Finance Amount: $4,550.00
(-) Scheduled Payment: $120.35
= New Balance: $7,424.45
New Monthly Payment Amount ($7,424.45 * 3.23%): $239.81
✎ This example assumes the following: minimum payment amount that is equal to 3.23% of your highest account balance, or $75.00 , whichever is greater.
Why is the scheduled payment subtracted?
Additional charges will be processed in an active billing cycle. The previous billing cycle would have already been sent to the consumer with an expected payment amount. We assume this payment will be made on time, and thus we subtract it from the new calculation as the new monthly payment will typically be due 25 days after the close of the current billing cycle.
New Charge Slip Sample Payment Disclosure
NOTICE: By signing this document you are agreeing to a minimum payment amount that is equal to 3.23% of your highest account balance, or $75.00 , whichever is greater. Your minimum payment amount will be provided in your periodic statement each month and will be available to view each month online. This minimum payment amount amends and replaces the minimum payment amount and disclosures provided in your Retail Installment Credit Agreement. All terms and conditions in your Retail Installment Credit Agreement shall continue to apply.
Example Billing Statements
billing statements for the example above.
