DMBM401050 - Interest: interest on late payments: Effective Date of Payment (EDP)

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The date to which interest is charged is the payment date, more commonly referred to as the effective date of payment (EDP). The rules for determining the EDP for accepted payment methods are set out in DMBM201020.

Where there is an objection to an interest charge on the grounds that the allocated EDP is later than the date the customer expected to be allocated to the payment, consideration should be given to the grounds for the objection. Where the customer’s claim is substantiated, for example where the payment was originally held as unallocated/unmatched payment and was reallocated with an incorrect EDP, the EDP should be amended accordingly.

In each of the Department’s main computer systems the process for amending an EDP is different. Processes for amending EDPs are set out in DMBM402000.

When reallocating a payment from one charge to another for the same customer, if the payment being reallocated has attracted repayment interest then the EDP of that payment is to be amended to the date to which the repayment interest is calculated. This is to ensure that if a further reallocation of the same payment is made at some point in the future, any repayment interest that may then be due will not be duplicated. The only exception to this is reallocations within the SAFE system.