Configuring and Evaluating Interest Rates in ACE

This guide details how interest rates are configured and applied in the ACE system, covering account-level, client-level, judgment, and state-based rates. It explains the steps to set state-based interest rates and outlines the evaluation process to ensure the lowest applicable rate is selected.

Where are Interest Rates Stored in ACE?

1. Account-Level Interest Rate

   1. This rate is stored to an individual account. It is specified within the account details and is the rate that will be applied.

2. Client Interest Rate

   1. This is the default rate associated with a client. It will be stored to an account when the account is created, in the absence of state or other workflow overriding it.

3. Judgment Account Interest Rate

   1. This rate is stored to a judgment account when it is created and will not be overwritten by client or state interest rates.

4. State Interest Rate

   1. State-based interest rates are configured with State Statutes of Limitations in ACE and may only be applied based on a triggered workflow.

Note

An “Interest Rate” associated with an account will not be applied in the absence of an interest effective date.

State/SOL Account Type Interest Rate Workflow

To configure state-based workflow:

1. Create an onAfterPrimaryDemographicStateChange action path with the Evaluate State-Based Interest flow action, preceded by any applicable conditional flow actions.

   1. For example before the Evaluate State Based Interest flow action occurs:

      1. you might configure more than one State/SOL Account Type interest rate based on different SOL Account Types (so they will apply only if an account has that Account Type identified)

      2. a logic block can be used to limit (include or exclude) accounts that should be evaluated (there may be some accounts you don't want to be evaluated even when they are in a specific state)

2. Configure the onAfterPrimaryDemographicStateChange trigger to be active and connected to the action path above.

Note

If onAfterPrimaryDemographicStateChange is not configured, state interest rates will not apply to new accounts without an existing interest rate.

Interest Rate Evaluation

There are various points at which the account interest rate may be updated based on manual and automated workflow. The following details and flowchart outline those options.

Judgment Account Interest

If the account is in judgment, the interest rate is set based on the judgment entry and does not change.

The evaluation process ensures that the appropriate interest rate is populated to the account and applied based on the following steps:

1. Interest Rate Loaded With the Account?

   1. Yes: Apply the loaded interest rate.

2. Client Interest Rate Set?

   1. Yes: Apply the client's interest rate.

3. State Interest Rate Evaluation

   1. Compare state and client interest rates.

      1. If state interest rate is lower: Apply the state interest rate.

      2. If client interest rate is lower: Apply the client interest rate.

Interest Flowchart