Contract Adjustment Requests

This course is on common contract adjustment requests from buyers. 

Due Date Movement Finance Charge Computation

What is a Due Date Movement Request?


  • A buyer-initiated request to change their monthly payment schedule or date.

  • A buyer can request for this either during the downpayment or monthly amortization stage.


What to check before processing the request?

  • account must be current or updated
  • a request letter is required only for walk-in buyers
  • requests made via email will no longer require a request letter as long as email used to send the request is verified in the system
  • requests made over the phone will no longer require a request letter after caller passes the PID


  • request should be twenty (20) calendar days before the next due date
  • if the request is made less than twenty (20) calendar days, approved request will take effect the following month
  • standard fees include: re-documentation fee of Php 5,000 and a finance charge (computation may vary)
  • all fees and charges are waived if buyer's request is made within 7 days from reservation

Finance Charge Computation

SCENARIO 1: REQUEST IS MADE PRIOR TO 1ST DOWNPAYMENT and BEYOND 7 DAYS FROM RESERVATION

Consider this

Compare the REQUESTED NEW DUE DATE and he RESERVATION DATE to check if there will be a finance charge.


NO Finance Charge

If requested NEW DUE DATE is within 45 days from the reservation date

Example:                                                                                                                                                                   Requested NEW Due Date 08/10/2017                         Reservation Date 07/01/2017

Days Difference 40 days

WITH Finance Charge

If requested NEW DUE DATE is over 45 days from the reservation date

Example:                                                                                                                                                                   Requested NEW Due Date 08/25/2017                         Reservation Date 07/01/2017

Days Difference 55 days 

Finance Charge Computation

To compute for the finance charge, the base date for the computation will be the 1st DP due date

Determine the difference in the number of days between the 1st DP due date and the requested new due date.

Requested NEW Due Date 08/25/2017                                                                                                                             1st DP Due Date 08/01/2017

Days Difference 24 days

Running Balance x 13.5% (standard rate) x Days Difference/360

Php 2,500,000 X 13.5% X 24/360

PHP 22,500 (Finance Charge)

SCENARIO 2: REQUESTS MADE ANYTIME AFTER PAYMENT WILL HAVE A FINANCE CHARGE

Finance Charge Computation

The most recent due date will be used as the base. 

Requested NEW Due Date 07/30/2017                                                                                                                       Most Recent Due Date 07/05/2017

Days Difference 25 days

Running Balance x 13.5% (standard rate) x Days Difference/360

Php 2,500,000 X 13.5% X 25/360

PHP 23,437.50 (Finance Charge)

Due Date Movement Request Process Flow

Fees

Can a Client Request for a Waiver of Re-documentation fee and Finance Charge?

Yes, a NON-STANDARD Sapphire ticket will be created if on the onset of the request, client already requests for it.

Step 1: Non-standard request ticket for waiver must include reason/s why request must be approved. 

Step 2: Once, the non-standard ticket is approved, proceed with the creation of the Due Date Movement request sapphire ticket.                           

Step 3: The client will receive a conforme that they need to sign so that changes will be effected in the system. 

Are there instances where buyer would request for a waiver of re-documentation fees and finance charge upon receipt of conforme?


YES.

Since a Due Date Movement Ticket has already been created, a WAIVER OF CHARGES Sapphire Ticket will be created subject to management's approval. 

Learning Assessment

A request letter is required from clients requesting a movement of their due date.

  • Yes
  • For the voice channel only
  • For the walk-in channel only
  • Never

A finance charge is typically charged for due date movement requests.

  • True
  • False

If a request for movement of due date is made and buyer has already started paying for her downpayment

  • Base for computation of finance charge will be the most recent due date
  • Base for computation of finance charge will be the 1st DP due date
  • If requested new due date is within the same month, there will be no finance charge

If the request is made within 7 days from reservation and requested new due date is within 45 days from the reservation date

  • No redocs fee, with finance charge
  • No finance charge, with redocs fee
  • No redocs fee, no finance charge
  • With redocs fee, with finance charge

Requests less than 20 calendar days from the next due date will take effect on the same month.

  • True
  • False

If a request to waive the re-documentation fee and finance charge is made on the onset

  • Create a Non-standard Sapphire Ticket
  • Create a Waiver of Charges Ticket