Minimum payment includes past due
Learn how to use this powerful setting on line of credit accounts to ensure minimum payments meet a borrower’s full obligation.
The “Minimum Payment Includes Past Due Amount” setting automatically adds past-due amounts to a borrower’s upcoming minimum payment, ensuring they meet their full obligation.
When the setting is enabled, the minimum payment amount for a billing period is calculated as the Full Minimum Payment Due value, which includes that period’s minimum payment in addition to the total past-due amount from prior periods.
Payment application examples
These examples represent a line of credit account with two balances—a $500 cash advance balance at 24% APR and a $1,500 purchase balance at 15% APR—using LoanPro’s LMS default excess waterfall logic.
The current period minimum is $60 with a past-due amount of $55, so the Full Minimum Payment Due is $115.
| Payment | Minimum | Excess | Excess Application |
|---|---|---|---|
| $115 | $115 | $0 | With no excess, the full payment only applies to the minimum portion. |
| $400 | $115 | $285 | All $285 of excess funds pay down the 24% cash advance balance, reducing it from $500 to $215. The 15% balance is untouched because the highest APR balance has not been paid off. |
| $800 | $115 | $685 | $500 pays off the 24% cash advance balance in full and the remaining $185 applies toward the 15% purchase balance. |
If a payment exceeds the total amount of all outstanding balances, the remaining funds become a credit balance on a borrower’s account rather than an allocation.
How LoanPro handles minimum and excess payment applications
LoanPro’s LMS splits payments into two portions—minimum and excess. It then applies each according to its configured settings.
| Portion | Description | Application |
|---|---|---|
| Minimum | The payment portion that covers the Full Minimum Payment Due. | Applied using the payment type's configured minimum waterfall logic.
|
| Excess | Any payment amount greater than the Full Minimum Payment Due—floored at zero. | Applied using the payment type's configured excess waterfall logic.
|
Integration impact
When using the “Minimum Payment Includes Past Due Amount” setting, the accompanying Full Minimum Payment Due value updates payment logic across billing cycles, customer-facing views, AutoPay schedules, and template variables—without retroactively altering historical statements.
| Touchpoint | Behavior |
|---|---|
| Billing Cycles | Full Minimum Payment Due is calculated when each cycle closes, in both the backfill and daily processes. |
| Statements | The Statements page in LMS prioritizes Full Minimum Payment Due in the Minimum Payment column and detail view, falling back to the base minimum payment when no value exists. |
| AutoPay | The Min Payment Amount preset option in the AutoPay Amount dropdown menu draws from Full Minimum Payment Due. For accounts with past-due amounts, this means a larger AutoPay payment than before. Payments already applied during the cycle are still subtracted. |
| Context Engine | A new variable, full-minimum-payment-due, is available in the billing period values array for use in templates and automations. |
| Historical Cycles | The setting is not retroactive. Cycles that closed before enablement are not recalculated and will continue to show no value. |
Before you enable
We recommend confirming these details with your team before enabling the “Minimum Payment Includes Past Due Amount” setting:
1. Excess Waterfall Logic: The LMS default orders excess payment amounts in order of highest to lowest APR—as mandated by the Credit Card Accountability Responsibility and Disclosure (CARD) Act—but payment types can be configured with custom excess waterfall logic. Confirm that the ordering configured on each of your payment types is what you want.
2. Cardholder Agreement and Disclosures: Using this setting changes the minimum payment amount presented to customers on delinquent accounts. Confirm with your compliance and legal teams that this matches how your cardholder agreement defines the minimum payment—and that your statement disclosures are consistent.
3. Customer Communication for AutoPays: Customers enrolled in AutoPay with the Min Payment Amount preset option will see a larger balance owed than they did previously—if they have a past-due balance. Consider whether advance notice is appropriate for your customer base.
4. Scope: The setting defaults to off and is applied per program, with an optional per-account override. You can enable it for a single program first and expand from there.
Need help? If you would like a configuration walkthrough before using this setting, reach out to your LoanPro representative. Together, you and your representative can review your current payment type configurations, confirm which programs can benefit from the setting, and coordinate enablement timing.
How to configure
The “Minimum Payment Includes Past Due Amount” setting can be configured at both the Program level and Account level for line of credit accounts.
To configure this setting as a default at the Program level:
1. Navigate to the Programs tab, then create or edit a Program.
2. Access Minimum Payment > Added Amounts > Do you want to add certain types of transactions to either the percentage or fixed dollar amounts? > select Yes.
3. When additional questions appear, select Yes under Do you want to add outstanding past-due amounts to the minimum payment?.
4. Click Save Changes.
To configure this setting at the Account level:
1. Open an individual LOC account, then navigate to Account Settings > Setup > Minimum Payments Setup.
2. Select the “Yes, include past due amounts in minimum payment” dropdown option under Past Due In Minimum Payment.
3. Click Save.
When the setting is configured at the Account level, it overrides the Program default. Only do so when an account should behave differently from its program.