| Redress Manager 2023 Adjustment Rate Overlaps & Precedence |
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Within the adjustment set-up it is possible to enter adjustments, which the system will fail to interpret correctly. Examples of this are as follows:
Example E1 (Relevant to all rate adjustments)
Discount rate 1% 1/1/1990 - 1/1/1991 All
Discount rate 2% 1/4/1990 - 1/7/1990 Loan B
In this case the first discount rate is applied to both Loan A and Loan B, so the second discount rate would be ignored. This would also apply if two discounts for the same loan were included.
In general terms rate changes designated to ‘All’ are applied to Loan A + B.
Example E2 (Relevant to MIRAS Amount, Interest / Payment / Working Balance)
MIRAS Amount 40,000 1/1/1990 - 1/1/1991 All
MIRAS Amount 10,000 1/4/1990 - 1/7/1990 Loan B
In this case the 40,000 would be applied to Loan A + B (with B getting the remaining MIRAS relief) for the initial and later periods. However for the other period specified only the 10,000 would be applied to Loan B.
In general terms, amounts designated to ‘All’ are required to be split over Loan A + B, when present. Loan A always takes precedence in terms of being allocated allowances when ‘All’ is specified.
Special Note: For split loans MIRAS defaults to Loan A, and must be changed to ALL if it is required to be allocated to Loan A with the remaining MIRAS allocation going to Loan B.
Example E3 (Rate changes)
When rates are taken into account, they do have an order of precedence as follows (dates overlap):
Fixed rate
Increase rate
Discount rate
Capped rate
Collar rate
The list shows how the rates are applied to the standard rate, thus a fixed rate of 8% followed by a discount rate of 2%; would leave a final rate of 6%.
Example E4 (Min payments)
Minimum payment amount
Minimum payment balance %
These adjustments working in tandem with any calculated payment, selecting the highest value (these specify minimum values).
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