Interest and Penalties

This section of a USAC invoice shows how interest and penalties were calculated, how payments were applied, and the details of a company’s outstanding debt.

The top portion outlines how USAC has applied your payment or credit. A payment or credit is applied first to accrued interest and penalties and then to outstanding principal.

The bottom portion outlines the aging of all outstanding debts at the time the invoice was created.

Example of Interest and Penalties

Interest and Penalties Components

• Description – Debt Due Date: The invoice number of the debt and the payment date on which the invoice was originally due
• Principal: The amount of the debt subject to interest that was assessed on that invoice and remains outstanding
• Payment/Credit Date: The date that a payment or a credit was applied to the company’s account
• Interest Rate: The U.S. Prime Rate as of the date of delinquency plus 3.5 percent. (When a debt ages over 90 days delinquent, a second line is added which states “DCIA Penalty.” This additional 6 percent penalty is required for all debt over 90 days delinquent.)
• Days Late: The number of days for which interest and penalties are being applied on this invoice
• Additional Interest: The new interest that appears on the current invoice using the formula:Principal * (Interest Rate / 365) * Days Late
• Accrued Interest: The outstanding interest and penalties that were previously incurred on this debt, not including the current invoice amount
• Total Interest: The sum of Additional Interest and Accrued Interest
• Payment & Credit Applied: The amount of the payments or credits being applied to this debt
• Interest Outstanding: The amount of interest remaining on this debt after a payment or credit has been applied
• Principal Outstanding: The amount of principal remaining after a payment or credit has been applied

For all disputes regarding invoicing, including late payment/filing fees or interest accrued, visit the Billing Disputes page.

To request the payoff amount for your account, including daily interest and penalties for the outstanding balance, send a request via email to request the payoff amount.

For more information about late payment fees and penalties, visit the Late Payment, DCIA, Red Light web page.