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Need help calculating "Interest" for FRO Package?

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  • Need help calculating "Interest" for FRO Package?

    Hello,

    I am helping my gf fill out the FRO package and in the section to calculate interest I am having difficulty trying to figure out how much interest for the past 3 years. So the numbers are 42 months at $129 short and 2 months at $322 short. I am using the 3% example the form provides but the numbers don't make sense and Im horrible at math.




    Can someone please help me or guide me if Im doing it wrong?

  • #2
    Originally posted by OntarioDaddyMan View Post
    Hello,

    I am helping my gf fill out the FRO package and in the section to calculate interest I am having difficulty trying to figure out how much interest for the past 3 years. So the numbers are 42 months at $129 short and 2 months at $322 short. I am using the 3% example the form provides but the numbers don't make sense and Im horrible at math.




    Can someone please help me or guide me if Im doing it wrong?
    If the order doesn't state interest on it then FRO won't enforce interest.

    I used the same example and FRO sent my arrears request back as being incorrect. I still can't figure out why, so I just left it alone. And, I am a math person.

    Comment


    • #3
      Originally posted by MS Mom View Post
      If the order doesn't state interest on it then FRO won't enforce interest.

      I used the same example and FRO sent my arrears request back as being incorrect. I still can't figure out why, so I just left it alone. And, I am a math person.
      Thanks for the advise. It makes it easier for me that my gf read this

      Comment


      • #4
        Originally posted by OntarioDaddyMan View Post
        Thanks for the advise. It makes it easier for me that my gf read this

        LOL.

        It's a horribly complicated way to calculate interest - at least their according to their instructions.

        Their instructions state to calculate each short payment/missed payment monthly, but the correspondence I got back from them said that payments are applied to outstanding balance first, and then to the new month.

        So, if you are short $100 in January, the first $100 from Feb gets applied to January...and so on. Which isn't the way their instructions read.

        I just avoided asking for it, one less frustration.

        Comment


        • #5
          What do I do if there is not enough room ? there is not enough space ?

          Comment


          • #6
            Use a blank sheet of paper.

            Comment


            • #7
              Originally posted by MS Mom View Post
              LOL.

              It's a horribly complicated way to calculate interest - at least their according to their instructions.

              Their instructions state to calculate each short payment/missed payment monthly, but the correspondence I got back from them said that payments are applied to outstanding balance first, and then to the new month.

              So, if you are short $100 in January, the first $100 from Feb gets applied to January...and so on. Which isn't the way their instructions read.

              I just avoided asking for it, one less frustration.
              Interesting how FRO can give different people different answers. We were told that if a payment is not made, or is short then the interest on that amount is calculated monthly from the date is was not paid until the date you submit your request. It is not much. Most agreements have 3%. And if you work out 3% of $100 owed for 12 months its not much.
              For example 3% of $100 is $3 x 12 months is $36

              When I asked about payments made, i was told it was up to the payee to communicate what the payment was for. That when paying arrears the current payment must still be made on the appropriate date. So if the payee pays more than the current months payment then the extra is applied to the oldest arrears.

              Really its not worth much, unless your monthly payment are really high.

              Comment


              • #8
                Originally posted by Beachnana View Post
                Interesting how FRO can give different people different answers. We were told that if a payment is not made, or is short then the interest on that amount is calculated monthly from the date is was not paid until the date you submit your request. It is not much. Most agreements have 3%. And if you work out 3% of $100 owed for 12 months its not much.
                For example 3% of $100 is $3 x 12 months is $36

                When I asked about payments made, i was told it was up to the payee to communicate what the payment was for. That when paying arrears the current payment must still be made on the appropriate date. So if the payee pays more than the current months payment then the extra is applied to the oldest arrears.

                Really its not worth much, unless your monthly payment are really high.
                What you state is what is on the forms from FRO. But, when I submitted that, they sent it back to me and stated that a couldn't consider a June payment missed and a July payment made. The July payment was actually the June payment, it was just 30 days late.

                You can't make this stuff up....LOL

                Comment


                • #9
                  Yea, hD the same issue, so we actually called and spoke to a live person. It took 3 days of constant calling and leaving messages. Apparently they all have different times, they answer the phone, we just had to find the best time to call. You can also send a fax (so old school) with a request for a phone call. Give them the phone number and a couple of times you can answer the phone.

                  Once you actually get to speak with a counsellor then you need to ask them how they have interpreted the arrears and payments.

                  Such a pain.

                  Comment

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