Can you survive the effects of incorrectly applying the In Duplum Rule?
Everyone in the Credit- and Debt Collection Industry is aware of the In Duplum Rule and knows that it is a cardinal sin to contravene it. However, very few people really understand the true implications of the Rule and what is required in order to apply it correctly.
One needs to go no further than to ask ones software vendor what the difference between accrued interest and arrears interest is and what impact the ever-changing unpaid capital amount has on the implementation of the Rule in order to establish whether it has a decent grip on this Rule.
Then ask how Section 103 of the NCA changes the application of the In Duplum Rule., and whether your software allows for you to import all the prior financial transactions … even those far pre-dating the moment of default.
Is your software vendor honest when he says that he understands the In Duplum Rule?
If the In Duplum-question is posed to a software vendor; the answer is usually a very certain:
. . . of course we comply with the In Duplum Rule
Should that be enough to satisfy you, or should you ask for the detail to check whether their understanding of the Rule is accurate?