Creating a New Arrangement
Access to arrangements is determined by User Security Settings.
The DebtCol System Settings can define rules about how long an arrangement can go for. This can also be overridden on a client basis in their arrangement threshold settings. If these settings are implemented, when creating a new arrangement plan, a minimum instalment amount must be adhered to so the debt is paid within the required time-frame. User security settings can determine if the user can override the recommended minimum instalment or not.
Click the button labeled “Arrangement” above the History table. The following screen will appear
Remembering that the fields with an orange label are mandatory fields, complete the screen with the arrangement details.
The arrangement types are “standard”, “balloon” AND “Initial Lump Sum”.
Setting up a Standard Type arrangement
A standard type arrangement will allow you to specify a set instalment amount that is due at regular fixed frequencies. For example, $100 per week, or $200 per month etc.
If you are an EziDebit customer and the debtor agrees to direct debits, ensure the “Setup EziDebit direct debit” checkbox is ticked and then enter an email address for the debtor.
Click “Okay” to return to the case details page, then click “Save” to record the arrangement. A detailed note about the arrangement will be added to the note history. If you nominated the Ezidebit direct debit option and input the debtors email address, an an email with a Direct Debit Authority form will be sent to the debtor to complete. Once the debtor has completed this you will need to log in to your EziDebit Portal to ensure the debtor has been created at their end. After a few hours the case will be updated with a private note letting you know that the first EziDebit Direct Debit payment has been scheduled.
IMPORTANT: The EziDebit payment gateway can only handle standard type arrangements. It will not cater to initial lump sum payments, or balloon payments at the end.
Setting up an Initial Lump Sum arrangement
An “Initial Lump sum” arrangement will allow you to specify an initial lump sum amount and then regular instalment amounts. For example, $200 up front payment with $50 fortnightly payments thereafter.
Setting Up a Balloon Type arrangement
A balloon type arrangement will allow you to specify a standard arrangement with a set instalment amount that is due at regular fixed frequencies, but then allow for a final lump sum/balloon payment at the end.
When the balloon type is selected, enter the regular instalment details which will then calculate the number of regular payments. Then simply reduce the number of regular payments to have the system recalculate the final payment amount an date into a lump sum or balloon payment at the end.
SMS reminders to the Debtor
If the debtor has a mobile phone number, they will appear in the table for an SMS reminder to be sent to; unless the “No SMS Message” has been ticked next to their mobile in the debtor screen. To send an SMS reminder to their mobile prior to each installment falling due, simply click the “Reminder” check box.
Note: Automated default or under payment action wizards can be created and assigned to payment plans to action a case where a default has occurred. The Mass Processing Scheduler must be run on a daily basis to ensure all arrears are maintained and to activate any default action wizards.Where default actions are not defined, defaulting arrangements will appear in the operator work queues, by regardless, the Mass Processing Scheduler must be run daily when arrangements are recorded in DebtCol.
Viewing/Deleting existing Arrangement
Click the button labeled “Arrangement” on the right of the screen. The following screen will appear.
Here you can see details of the arrangement entered into. You cannot alter the key components of an arrangement, so should this change you may delete the arrangement by clicking “Delete” on the action bar.
To view the complete arrangement schedule, click the “Schedule” button on the action bar and the following page will appear:-
If the debtor wishes to defer an installment, enter the amount being deferred in the deferred column against the installment date.
For example, if the debtor could only afford $20.00 rather than the $100.00 specified; the operator would enter $80.00 in the deferred column. This means that when the payment is processed the arrangement will not be put into arrears providing the arrangement is not out of balance by more than the deferred amount. The amount being deferred will be added to the final instalment.
If your security gives you access to delete an arrangement, click the “Delete” button on the toolbar. When you save the case, the arrangement will be deleted and a detailed notation will be added to the case notes which indicates any arrears at the time and what payments had been applied to the arrangement.
Note: Below are some tips to assist you to understand the arrangement schedule page and in particular, how payments received after the arrangement commenced are reflected on this page.
- When a payment is made on a case with an arrangement, the value of that payment will appear in the "actually paid" column in the arrangement history paid on the row with the nearest date to the payment date.
- When a payment is made on a case with an arrangement, the value of that payment will appear in the "allocated" column on the row relating to the next due instalment.
- When a payment is reversed that has been allocated to an instalment, the value of the payment is subtracted from the amounts in "actually paid" and "allocated". So if $200 was showing as allocated, after the reversal it will show as zero.
- The DebtCol Mass Processing Scheduler must be run daily. Part of the scheduler checks the arrangements, provided the next due date is not in the future. When it checks the arrangement it basically rolls the next instalment date forward and calculates if there should be any arrears.
- If the next due date is in the future when the next instalment date comes around, the DebtCol mass processing scheduler will skip it, because it is only able to look at debts that are due or overdue, not future dated.
- The totals of the "actually paid" and "allocated" columns should always marry up. If they don't then the arrangement is invalid, which could be due to amendments made to the arrangement.
- Debt adjustments will not affect the arrangements, just the total balance due on the case. If will not affect arrears at all. The allocation of payments is also not affected.