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In this solution article we will discuss the impact of vehicle balloon payments on budget calculations. 

  • Upon running a successful credit check (Quick quote process), you will be able to manually include / exclude Creditor Obligations:


  • Please note that the Vehicle creditors will default to "Vehicle" as displayed in the above screenshot.
  • The Debt Counselor will be able to confirm with the consumer in cases of Balloon payment types, and will be able to manually update the account to the "Vehicle with Balloon" option. 

Please try and get the actual balloon amount from the consumer and enter it into the "Balloon" column. If no amount is entered, iDocs will default the balloon amount to 30% of the opening balance of that account. 

Notes:

  • The maximum term (for Balloon account types) will be up to 100 months from inception of the contract.
  • The term of Vehicle creditors NOT marked as 'Balloon accounts' will now be extended from 84 months to a maximum of 90 months.
  • Please Note: These changes will affect the 'future' budget values as the previous budgets did not include the Balloon payment calculations.


We have added the following setting on the preference page (under the Legal Preferences group):

  • Include Balloon In Budget Premiums
Include Balloon In Budget Premiums (Preference setting)

In cases where the preference setting is set to true: The balloon amount will also be amortized and included to be paid off over the repayment term.

Include Balloon In Budget Premiums (Preference setting) 

In cases where the preference setting is set to false: The balloon amount will be ignored and not be paid off over the repayment term.






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