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Finance Charge Double Rebating (Doc ID 2857416.1)

Last updated on MARCH 27, 2022

Applies to:

Oracle Financial Services Lending and Leasing - Version 14.4.0.0.0 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
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Finance Charge Rebate on insurance product cancel is double rebated if you first cancel the insurance product on a precomputed account and then backdate a payoff payment prior to that cancellation (which results in the full rebate of finance charge). Anytime the full finance charge is rebated there shouldn’t be a finance charge rebate on an insurance product that is cancelled as of a date after the full finance charge rebate. Please see attached document for steps and details.

EXPECTED BEHAVIOR
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When the insurance product was original cancelled but this shouldn’t be reapplied because that amount is already included in the INTEREST REBATE transaction. This is over rebating the finance charge, which is not correct.

STEPS
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The issue can be reproduced at will with the following steps:
1. Select or create an account with non auto rebate insurance product.
2. Then cancel the product.
3. Post a backdated payment which will payoff the amount
4. Verify the transaction details.
5.System is applying insurance finance charge rebate after cancellation of the product.

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, users having issue finance charge rebate on insurance product.

Cause

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In this Document
Symptoms
Cause
Solution


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