Pursuing a Deficiency Balance in Georgia

Top

For all sales where:

•	interest is earned on a pre-computed method (such as Rule of 78’s or Actuarial)

•	you accelerate the amount due from your customer

•	you intend to pursue a deficiency balance with your customer.

You must use the pro-rata or straight line method of earning interest. For accounting purposes you will continue to earn interest on whatever method you had been earning interest, but the amount that you pursue from your customer will be reduced by the amount as if you had been using the pro-rata method of earning interest. This will be clearly displayed in your customers transaction history listing should you need to prove what you have done for a judge.

The written law is not clear on this but case law is very clear, with a number of cases over the years consistently ruling on this. One of the earliest cases can be found here: www.lawskills.com/case/ga/id/59703/

Used Car Dealer Software by Frazer Computing, Inc.