Delinquency buckets
In credit terms, an overdue amount refers to the unpaid (after real due date) amount a customer owes after paying less than the minimum amount due (MAD) on their last closed statement. In addition, if the customer keeps doing this - paying less than MAD over and over - their overdue amount continues to increase due to interest accruals and probably fines/fees.
Credit card issuers are often only concerned with the total overdue amount for in the current cycle. In India, however, there is the concept and requirement for delinquency buckets, which indicate how much of the overdue amount applies to each cycle with a less than MAD paid amount after each corresponding real due date.
Current limitation
Only credits that have transaction type ID=7253 can clear delinquency buckets. Not all issuers are currently using this transaction type. See your Pismo representative if you need to set this up.
Take a customer whose statement closes on the 10th day of each month and has the 15th as the due date. (To keep it simple, assume this is the real due date.) Also, suppose after a couple of cycles, the following scenario occurs:
Date format
In the tables below, the date format is MM/DD/YY (month/day/year)
Transactions for Cycle 3 - February 11th:
| Transaction ID | Amount | Balance | Transaction type | Event date | Cycle |
|---|---|---|---|---|---|
| 20 | $700.00 | $665.00 | Purchase | 1/13/22 | 2 |
| 21 | $350.00 | $350.00 | Purchase | 1/13/22 | 2 |
| 22 | $35.00 | $0.00 | Payment | 2/15/22 | 3 |
| 23 | $100.00 | $100.00 | Purchase | 2/16/22 | 3 |
| 24 | $200.00 | $200.00 | Purchase | 2/16/22 | 3 |
| 25 | $27.21 | $27.21 | Interest | 2/16/22 | 3 |
Statement: (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)
| C | Previous balance | Debits | Credits | Balance | MAD | Closing date | Due Date | OA | DA |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $0 | $1,050 | $0 | $1,050 | $52.50 | 1/10/22 | 1/15/22 | $0 | $0 |
| 2 | $1,050 | $700 | $1,050 | $700 | $35 | 2/10/22 | 2/15/22 | $0 | $0 |
| 3 | $700 | $327.21 | $35.00 | $992.21 | $49.61 | 3/10/22 | 3/15/22 | $0 | $0 |
Transactions for Cycle 4 - March 11
| Transaction ID | Amount | Balance | Transaction type | Event date | Cycle |
|---|---|---|---|---|---|
| 23 | $100.00 | $100.00 | Purchase | 2/16/22 | 3 |
| 24 | $200.00 | $200.00 | Purchase | 2/16/22 | 3 |
| 25 | $27.21 | $27.21 | Interest | 2/16/22 | 3 |
| 26 | $0.00 | $0.00 | Payment | 3/15/22 | 3 |
| 27 | $100.00 | $100.00 | Purchase | 3/16/22 | 4 |
| 28 | $31.53 | $31.53 | Interest | 3/16/22 | 4 |
| 29 | $25.00 | $25.00 | Late Fee | 3/16/22 | 4 |
Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)
| C | Previous balance | Debits | Credits | Balance | MAD | Closing Date | Due Date | OA | DA |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $0 | $1,050 | $0 | $1,050 | $52.50 | 1/20/22 | 1/15/22 | $0 | $0 |
| 2 | $1,050 | $700 | $1,050 | $700 | $35 | 10/2/22 | 2/15/22 | $0 | $0 |
| 3 | $700 | $327.21 | $35 | $992.21 | $49.61 | 10/3/22 | 3/15/22 | $0 | $0 |
| 4 | $992.21 | $156.53 | $0 | $1,148.74 | $104.57 | 10/4/22 | 4/15/22 | $49.61 | $49.61 |
The first due date took place at cycle 2 and the customer fully paid the corresponding amount, so the overdue amount and delinquency bucket for cycle 2 is zero.
At cycle 3, the due date for closed cycle 2 statement took place and the MAD was $35.00. The customer paid exactly that amount, so even though they started to revolve, the overdue amount and delinquency bucket for cycle 3 is equal to zero.
At cycle 4 however, customer finances seem to run out of control. The cycle 3 due date has come and its MAD amount is $49.61. This time, the customer does not pay anything. Now, the customer has an overdue amount of $49.61 and the first greater than zero delinquency bucket - also $49.61.
In cycle 5, the cycle 4 closed statement due date occurs, and the corresponding MAD is $104.57. Once more, the customer does not pay any amount, so their updated overdue amount is $104.57. Part of it is the $49.61 (delinquency bucket for cycle 4). Another part of it is exactly the difference between the total overdue amount and the previous delinquency bucket, that is, the delinquency bucket for cycle 5 is $54.96.
Transactions for Cycle 5 - April 11
| Transaction ID | Amount | Balance | Transaction type | Event date | Cycle |
|---|---|---|---|---|---|
| 27 | $100.00 | $100.00 | Purchase | 3/16/22 | 4 |
| 28 | $31.53 | $31.53 | Interest | 3/16/22 | 4 |
| 29 | $25.00 | $25.00 | Late Fee | 3/16/22 | 4 |
| 30 | $0.00 | $0.00 | Payment | 4/15/22 | 5 |
| 31 | $35.12 | $35.12 | Interest | 4/16/22 | 5 |
| 32 | $25.00 | $25.00 | Late Fee | 4/16/22 | 5 |
Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)
| C | Previous balance | Debits | Credits | Balance | MAD | Closing Date | Due Date | OA | DA |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $0 | $1,050 | $0 | $1,050 | $52.50 | 1/10/22 | 1/15/22 | $0 | $0 |
| 2 | $1,050 | $700 | $1,050 | $700 | $35 | 2/10/22 | 2/15/22 | $0 | $0 |
| 3 | $700 | $327.21 | $35 | $992.21 | $49.61 | 3/10/22 | 3/15/22 | $0 | $0 |
| 4 | $992.21 | $156.53 | $0 | $1,148.74 | $104.57 | 4/10/22 | 4/15/22 | $49.61 | $49.61 |
| 5 | $1,148.74 | $60.12 | $0 | $1.208.86 | $168.20 | 5/10/22 | 5/15/22 | $104.57 | $54.97 |
Notice that the total overdue amount is equal to $104.57, composed of two delinquency buckets - $49.61 (cycle 4) and $54.96 (cycle 5).
As with cycles 4 and 5, the customer made no payment for cycle 6 which led them to an updated overdue amount of $168.20, out of which, $63.63 corresponds to the cycle 6 delinquency bucket and the remaining amount as previously summarized.
So this is the current state:
Transactions for Cycle 6 - May 11
| Transaction ID | Amount | Balance | Transaction type | Event date | Cycle |
|---|---|---|---|---|---|
| 31 | $35.12 | $35.12 | Interest | 4/16/22 | 5 |
| 32 | $25.00 | $25.00 | Late Fee | 4/16/22 | 5 |
| 33 | $0.00 | $0.00 | Payment | 5/15/22 | 6 |
| 34 | $36.96 | $36.96 | Interest | 5/16/22 | 6 |
| 35 | $25.00 | $25.00 | Late Fee | 5/16/22 | 6 |
Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)
| C | Previous balance | Debits | Credits | Balance | MAD | Closing Date | Due Date | OA | DA |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $0 | $1,050 | $0 | $1,050 | $52.50 | 1/10/22 | 1/15/22 | $0 | $0 |
| 2 | $1,050 | $700 | $1,050 | $700 | $35 | 2/10/22 | 2/15/22 | $0 | $0 |
| 3 | $700 | $327.21 | $35 | $992.21 | $49.61 | 3/10/22 | 3/15/22 | $0 | $0 |
| 4 | $992.21 | $156.53 | $0 | $1,148.74 | $104.57 | 4/10/22 | 4/15/22 | $49.61 | $49.61 |
| 5 | $1,148.74 | $60.12 | $0 | $1.208.86 | $168.20 | 5/10/22 | 5/15/22 | $104.57 | $54.97 |
| 6 | $1,208.86 | $61.96 | $0 | $1,270.82 | $282.19 | 6/10/22 | 6/15/22 | $168.20 | $63.63 |
At cycle 7 something new happens, the customer pays an amount that matches precisely the first greater than zero delinquency bucket (cycle 4, $49.61). As a result, that delinquency bucket is fully cleared and the current one is calculated as follows: overdue amount (-) sum of previous non cleared delinquency buckets’ amounts. Customer payments must clear delinquency buckets from oldest to newest.
Transactions for Cycle 7 - June 11
| Transaction ID | Amount | Balance | Transaction type | Event date | Cycle |
|---|---|---|---|---|---|
| 34 | $36.96 | $36.96 | Interest | 5/16/22 | 6 |
| 35 | $25.00 | $25.00 | Late Fee | 5/16/22 | 6 |
| 36 | $49.61 | $0.00 | Payment | 5/15/22 | 7 |
| 37 | $37.36 | $37.36 | Interest | 5/16/22 | 7 |
| 38 | $25.00 | $25.00 | Late Fee | 5/16/22 | 7 |
Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)
| C | Previous balance | Debits | Credits | Balance | MAD | Closing Date | Due Date | OA | DA |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $0 | $1,050 | $0 | $1,050 | $52.50 | 1/10/22 | 1/15/22 | $0 | $0 |
| 2 | $1,050 | $700 | $1,050 | $700 | $35 | 2/10/22 | 2/15/22 | $0 | $0 |
| 3 | $700 | $327.21 | $35 | $992.21 | $49.61 | 3/10/22 | 3/15/22 | $0 | $0 |
| 4 | $992.21 | $156.53 | $0 | $1,148.74 | $104.57 | 4/10/22 | 4/15/22 | $49.61 | $49.61 |
| 5 | $1,148.74 | $60.12 | $0 | $1.208.86 | $168.20 | 5/10/22 | 5/15/22 | $104.57 | $54.97 |
| 6 | $1,208.86 | $61.96 | $0 | $1,270.82 | $282.19 | 6/10/22 | 6/15/22 | $168.20 | $63.63 |
| 7 | $1,270.82 | $62.36 | $49.61 | $1,283.57 | $344.37 | 7/10/22 | 7/15/22 | $232.58 | $113.99 |
In conclusion, delinquency buckets are only for issuer’s follow up on the existing overdue amounts and are meant to be completely transparent to customers - unless platform client wants to or is obligated by regulations to do so.
Delinquency bucket API endpoints
Delinquency bucket events
Delinquency buckets are automatically created and updated, there are no endpoints for doing that.
Updated 8 months ago