Category:
Account Inquiry

Subcategory:
Account Balance Request

Created:
2016-02-27

Modified:
2016-02-27

How are my payments applied to my account?

Question

When I make a payment on my Out of Service debt(s), can you please explain how those payments are then applied to my account?

Answer

Payments are first applied to penalty charges, administration fees, and interest. Then, any remaining payment is applied to the principal balance of the debt. 

For accounts with more than one debt with Out of Service Debt and Claims, payments are first applied to the oldest debt (based on establishment date in our system) until paid in full. Then, payments are applied to remaining debts in order (oldest to newest) until the entire account has been paid in full.

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