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 will continue to increase due to interest accruals and probably fines/fees.

Credit card issuers are often only concerned with the total overdue amount due 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. As we start to deep dive, take a look at the tables below.

📘

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 at the 10th day of each month and has the 15th as the due date (which in this case we will consider as the real due date to keep it simple). Also, suppose after a couple of cycles, we land on the following scenario:

📘

Date format

In the tables below, the date format is MM/DD/YY (month/day/year)

Transactions for Cycle 3 - February 11th:

Transaction IDAmountBalanceTransaction typeEvent dateCycle
20$700.00$665.00Purchase1/13/222
21$350.00$350.00Purchase1/13/222
22$35.00$0.00Payment2/15/223
23$100.00$100.00Purchase2/16/223
24$200.00$200.00Purchase2/16/223
25$27.21$27.21Interest2/16/223

Statement: (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

CPrevious
balance
DebitsCreditsBalanceMADClosing date Due
Date
OADA
1$0$1,050$0$1,050$52.501/10/221/15/22$0$0
2$1,050$700$1,050$700$352/10/222/15/22$0$0
3$700$327.21$35.00$992.21$49.613/10/223/15/22$0$0

Transactions for Cycle 4 - March 11

Transaction IDAmountBalanceTransaction typeEvent dateCycle
23$100.00$100.00Purchase2/16/223
24$200.00$200.00Purchase2/16/223
25$27.21$27.21Interest2/16/223
26$0.00$0.00Payment3/15/223
27$100.00$100.00Purchase3/16/224
28$31.53$31.53Interest3/16/224
29$25.00$25.00Late Fee3/16/224

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

CPrevious
balance
DebitsCreditsBalanceMADClosing DateDue
Date
OADA
1$0$1,050$0$1,050$52.501/20/221/15/22$0$0
2$1,050$700$1,050$700$3510/2/222/15/22$0$0
3$700$327.21$35$992.21$49.6110/3/223/15/22$0$0
4$992.21$156.53$0$1,148.74$104.5710/4/224/15/22$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.

Now, we are at cycle 5, in which 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 IDAmountBalanceTransaction typeEvent dateCycle
27$100.00$100.00Purchase3/16/224
28$31.53$31.53Interest3/16/224
29$25.00$25.00Late Fee3/16/224
30$0.00$0.00Payment4/15/225
31$35.12$35.12Interest4/16/225
32$25.00$25.00Late Fee4/16/225

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

CPrevious
balance
DebitsCreditsBalanceMADClosing
Date
Due
Date
OADA
1$0$1,050$0$1,050$52.501/10/221/15/22$0$0
2$1,050$700$1,050$700$352/10/222/15/22$0$0
3$700$327.21$35$992.21$49.613/10/223/15/22$0$0
4$992.21$156.53$0$1,148.74$104.574/10/224/15/22$49.61$49.61
5$1,148.74$60.12$0$1.208.86$168.205/10/225/15/22$104.57$54.97

Notice what we have so far: a total overdue amount 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 picture we have right now:

Transactions for Cycle 6 - May 11

Transaction IDAmountBalanceTransaction typeEvent dateCycle
31$35.12$35.12Interest4/16/225
32$25.00$25.00Late Fee4/16/225
33$0.00$0.00Payment5/15/226
34$36.96$36.96Interest5/16/226
35$25.00$25.00Late Fee5/16/226

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

CPrevious
balance
DebitsCreditsBalanceMADClosing
Date
Due
Date
OADA
1$0$1,050$0$1,050$52.501/10/221/15/22$0$0
2$1,050$700$1,050$700$352/10/222/15/22$0$0
3$700$327.21$35$992.21$49.613/10/223/15/22$0$0
4$992.21$156.53$0$1,148.74$104.574/10/224/15/22$49.61$49.61
5$1,148.74$60.12$0$1.208.86$168.205/10/225/15/22$104.57$54.97
6$1,208.86$61.96$0$1,270.82$282.196/10/226/15/22$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 IDAmountBalanceTransaction typeEvent dateCycle
34$36.96$36.96Interest5/16/226
35$25.00$25.00Late Fee5/16/226
36$49.61$0.00Payment5/15/227
37$37.36$37.36Interest5/16/227
38$25.00$25.00Late Fee5/16/227

Statement (Key: C = Cycle, OA=Overdue amount, DA=Delinquent amount)

CPrevious
balance
DebitsCreditsBalanceMADClosing
Date
Due
Date
OADA
1$0$1,050$0$1,050$52.501/10/221/15/22$0$0
2$1,050$700$1,050$700$352/10/222/15/22$0$0
3$700$327.21$35$992.21$49.613/10/223/15/22$0$0
4$992.21$156.53$0$1,148.74$104.574/10/224/15/22$49.61$49.61
5$1,148.74$60.12$0$1.208.86$168.205/10/225/15/22$104.57$54.97
6$1,208.86$61.96$0$1,270.82$282.196/10/226/15/22$168.20$63.63
7$1,270.82$62.36$49.61$1,283.57$344.377/10/227/15/22$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.