Defining the Collections Processing Rules

If selected, the credit union uses Portico's Collections processing to track delinquent loans and negative share accounts.

(Portico Host: 901 Transaction - COLLECTIONS field)

Indicates whether the Collection Detail – Notes tab will appear with the Account-Level Notes option selected or the Member-Level Notes option selected at the credit union level. This field can be maintained by the credit union. Select Member or Account from the drop-down list and click Save to set up the default notes option for your credit union. You can also define the default option at the user level on the User Profile - Preferences tab.

Indicates the following information about delinquent loans including credit card accounts and the Automated Collections system:

Whether the delinquency grace period before a loan transfers to Automated Collections is based on days, months, a percentage of the scheduled payment amount, or a combination of days, months, and percentage. The number of days or months appears in the Delinquency Period field; the percentage appears in the Collection Percent field.

Whether or not the system should compare the amount specified in the CC Delinquent Amount field to the delinquency amount on a credit card account as sent by the credit card processor.

The valid values are:

N - The credit union does not use Automated Collections. System default.

D - The delinquency grace period is specified in days.

M - The delinquency grace period is specified in months. Not valid for vendor mortgage loans.

P - The delinquency grace method for loans with Delinquency Method B is based on a percentage of the scheduled loan payment. The percentage appears in the Collection Percent field. The delinquency grace period for loans with Delinquency Method D is specified in days. Not valid for vendor mortgage loans.

B - The delinquency grace method for loans with Delinquency Method B is based on a percentage of the scheduled loan payment. The percentage appears in the Collection Percent field. The delinquency grace period for loans with Delinquency Method D is specified in months. Not valid for vendor mortgage loans.

A - The system will transfer a credit card account to Automated Collections if the delinquency amount specified by the credit card processor is equal to or greater than the amount specified in the CC Delinquent Amount field. This option is only valid for credit card loan types. A valid BIN must appear in the BIN field. Not valid for vendor mortgage loans.

(Portico Host: 962 Transaction - COLLECTIONS OPTION field)

The period of delinquency allowed before the loan is transferred to Automated Collections. The collection period can be 0 through 999. This number refers to days or months based on the option specified in the Automated Collections field. For vendor mortgage loans, the delinquency period will refer to days only.

Length: 3 numeric

(Portico Host: 962 Transaction - PERIOD field)

The number of days past the first payment date for a loan to be transferred into collections. This option is only available for Delinquency Method D loans. Portico uses the original payment due date on the Loans - General tab to indicate the first payment date. Loans meeting the criteria for the First Grace option are transferred into collections with the status message of 1ST PYMT. The option is not used when the First Grace field is 00. Not valid for vendor mortgage loans.

Length: 3 numeric

(Portico Host: 962 Transaction - FIRST GRACE field)

If the Automated Collections field is P or B, this field contains the percentage of the scheduled loan payment amount that must be delinquent before the loan is transferred to Automated Collections.

If the Automated Collections field is N, D, M or A and a GL account is specified in the Commission GL Account field, this field contains the percentage that the collection agency will receive when a payment is made on a delinquent loan. The amount is credited to the commission GL.

The valid percentages are 0 through 100 percent. Example: 075.00 equals 75 percent. Not valid for vendor mortgage loans.

Length: 6 numeric including decimal

(Portico Host: 962 Transaction - COLL PERC field)

The number of days the tickler date can be advanced into the future. This option prevents collection officers from erroneously advancing the tickler date. The system subtracts the tickler date from the current date and compares the remainder to the number of tickler days in the Tickler Days field. If the remainder is greater than the number of tickler days, the collector will receive an error message. If the Tickler Days field is 000, this option is not used.

Length: 3 numeric

(Portico Host: 962 Transaction - TICKLER DAYS field)

The minimum amount a credit card account must be delinquent before the system will transfer the account to Automated Collections. The system compares this amount to the delinquent amount provided by the credit card processor. If the amount provided by the processor is equal to or greater than the amount specified in this field, the system transfers the account to Automated Collections. The valid values are 0 99999. Not valid for vendor mortgage loans.

Length: 5 numeric (whole dollars)

(Portico Host: 962 Transaction - CC DEQ AMT field)

The general ledger account to which the loan collection agency's commission is applied. This GL is debited and credited for the amount of the commission. The number specified must exist in the GL Chart of Accounts. If the Commission GL Account field has a specified general ledger account, this will be the default if a GL account is not entered on the payment transaction. Otherwise an account number is required when entering a commission amount. Not valid for vendor mortgage loans.

Length: 6 numeric

Keyword: FG

(Portico Host: 962 Transaction - COMM GL field)

The credit union-defined negative amount a share must become before the account drops into Collections. The valid value must be less than zero. If the value is zero, the share type will not fall into collections. A negative sign must follow the dollar amount entered.

Length: 9 numeric including decimal

(Portico Host: 922 Transaction - COLLECTIONS AMOUNT field)

The credit union-defined number of grace days allowed before a non-Courtesy Pay share account is transferred to Collections. The number of days can be 0 through 999. System default is zero. If the member’s share draft account is not set up with Courtesy Pay (Courtesy Pay Option field is Not Allowed on the Shares – Draft Info tab), Portico will compare the date in the Criteria Met On field on the Shares - Collections tab with the value in the Non-Courtesy Pay Grace field to determine if the negative balance share draft account should be dropped into collections.

Example: If grace days is 0, and a share has a negative balance date of 04/25/12 on the Shares - General tab and there is no activity that brings the share positive in the PM pass of the 04/25/12 back-office cycle, the share will fall into collections at the end of the PM pass of the back-office cycle. If a share is not negative at the end of the PM pass of the 04/25/12 back-office cycle, but becomes negative during the AM pass of the back-office cycle, the negative date will be updated to 04/26/12. For the member to drop into collections, the share must remain negative until the PM pass of the 4/26/12 back-office cycle. If grace days is 1 and a share has a negative balance date of 04/25/12 on the Shares - General tab, the share will drop into collections during the PM pass of the 04/26/12 back-office cycle.

Length: 3 numeric

(Portico Host: 922 Transaction - COLLECTIONS GRACE field 1)

The credit union-defined number of grace days allowed before a Courtesy Pay share account is transferred to Collections. The number of days can be 0 through 999. System default is zero. If the member’s share draft account is set up with Courtesy Pay (Courtesy Pay Option field is not Not Allowed on the Shares – Draft Info tab), Portico will compare the date in the Criteria Met On field on the Shares - Collections tab with the value in the Courtesy Pay Grace field to determine if the negative balance share draft account should be dropped into collections.

Length: 3 numeric

(Portico Host: 922 Transaction - COLLECTIONS GRACE field 2)