Mass. Gen Laws Ann. Ch. 140, §114B allows for “a delinquency charge on any payment not paid in full within fifteen days of its due date in an amount equal to ten percent of the outstanding balance or ten dollars, whichever is less…” to be charged on open-end credit plans.
A new Massachusetts HELOC Late Charge Default rule has been added to ConformX to support the Late Charge Maximum Amount (FI 1025) of ten dollars. A global standard value mapping has also been added to new field HELOC Late Charge Outstanding Balance Percent (FI 193527) to set it to ten percent when:
- Property State (FI 1714) is Massachusetts,
- HELOC (FI 28859) is set to “Yes”, and
- Use Late Charge Defaults is set to “Yes” in ConformX System Defaults (Calculate Late Charge Defaults, FI 31300).
The Late Fee ConformX has been updated on the Matrices webpage to reflect the new Massachusetts HELOC late charge rule.
When HELOC Late Charge Outstanding Balance Percent has a value, “[HELOC Late Charge Outstanding Balance Percent]% of the outstanding balance” will print in the standard HELOC Agreement (Cx21652) in place of “[Late Charge Percentage]% of the overdue monthly principal and interest payment (or interest payment, if it only consists of interest)”.
This means if the ConformX Late Charge defaults are used, the following text will print for Massachusetts on the standard HELOC Agreement by default:
“Late Charges.
If your payment is more than 15 days late, we will charge a late fee of 10.00% of the outstanding balance, but not more than $10.00.”
The existing three percent for Massachusetts for the Late Charge Percentage (FI 1024) has been maintained in the new Massachusetts HELOC Late Charge Default rule. This has been left in place for backwards compatibility to support any existing custom HELOC agreements or custom coding that may rely on the Late Charge Percentage being populated.
These changes are available for testing on Stage & Stage 2 servers and will take effect on March 27, 2025. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
DR-177000
T3S-20577