"How To" Functions in CRC
Two Bankruptcy
process options and corresponding results in CRC:
1-
Handle as a Postponement
PPBK – Process
a postponement for Bankruptcy
Effect: Loan/Receivable
Status = P
Past Due / Curr Due Installments will be removed.
Credit Bureau Status=11 (Current) & Special Pmt Indicator=
02 ( Deferred Pmt)
Interest amts move to Int Balance and accrues with each
Benefit Mail cycle.
How to Process:
Notice of
Stay of Creditor Received:
Make note in call log of Loan/Receivable status/delinquency of
Loan/Receivable as of BK filing date.
Bankruptcy Filed Flag – BS / Top Menu - Flags
Apply PPBK Benefit –
Set End date well out into future since you have no time
frame
Un-Check the Bill Int box
Monitor /extend PP end date to ensure the end date is
not nearing if Discharge has not been received – Reports/Benefits/Allowances-Currently
Active
Upon receipt of
discharge
To reflect Loan/Receivable with installs which would have accrued
during BK:
Reverse the PPBK -
will re-establish past due installments and age Loan/Receivable as if no PP was applied.
(Princ and Interest)
Go to OM/LnMtnce/FInc – Clear the Int Balance field If
any $’s
OR
To reflect Loan/Receivable with status prior to BK plus only interest
during BK:
Reverse the PPBK benefit –
Re-apply with true begin and end dates of BK.
Go to OM/LnMtnce/Finc –
Clear the Int and Int Bal fields
Set past due install counter to equal the status of Loan/Receivable
prior to PP (from note in call log
– pd+cd install) .
(Type = External
/ Bill Lns = No / Report as ‘In Collections’= No)
Effect: Loan/Receivable Status
= Q
Installments = Continue to accrue
Credit Bureau = As aged
Bill Hold Code = Type of BK will report as Consumer Information
Indicator
How To Process:
Notice of Stay of Creditor Received:
Bankruptcy Filed Flag –> BS / Top
Menu – Flags
Set Bill Hold Code and Date to set Consumer Info Indicator
-> Type of Bk
Make note in call log of Loan/Receivable status/delinquency of
Loan/Receivable as of BK filing date.
Move Loan/Receivable(s) to External Queue – Bk
Pending
Ext Que Param:
Report to Credit Bureau as "With External Collections" = NO
B.S. Collection $ icon: Set Review date out by 6 mos.
Upon receipt of discharge
Make note in Call Log
Remove BkRpt Filed Flag
Remove Bill Hold Flag
Remove from Queue (place in any system queue) – resumes billing for all
amounts due since filing of BK
Calendar Year: 20xx
For 1098-E's to Customers
Add 1098-E to Customer Mail Queue? Yes
Limit reporting to those whose interest exceeds $600.00? Yes
For the IRS File:
Write 1098-E history record for Customers? Yes
Limit reporting to those whose interest exceeds $600.00? Yes
Sort Customers by: Last Name
Is this a Test or Real file? Real File
Submit as an Original or Replacement file? Original File
If this is a replacement, what is the name of the original file? <blank>
Extract File Name: 20xx_1098-E.txt
Overwrite existing files? Yes
SECOND PASS - For internal office use, builds
a list of EVERYONE who had any interest paid during the year.
Calendar Year: 20xx
For 1098-E's to Customers
Add 1098-E to Customer Mail Queue? No
Limit reporting to those whose interest exceeds $600.00? No
For the IRS File:
Write 1098-E history record for Customers? No
Limit reporting to those whose interest exceeds $600.00? No
Sort Customers by: Last Name
Is this a Test or Real file? Test File
Submit as an Original or Replacement file? Original File
If this is a replacement, what is the name of the original file? <blank>
Extract File Name: 20xx_1098-E.txt
Overwrite existing files? No
For the list, simply print the report from the
resulting output that comes up. There is a print button there for you.
ADDITIONALLY….. you may opt to send a letter
to each Customer.
Steps required to send a LETTER, in lieu of 1098-E
form, providing Customers with interest paid for current Calendar Year.
1-
Export -
Run the 1098-E Reporting job to create IRS file….. (i.e. SECOND PASS above)
2-
OM/Letter
Mtnc - Create a letter as ‘Type L- Letter’ and use replaceable tag for
<PRIOR
YTD INTEREST> .
3-
Reports/Campaign
Mail - Select applicable options for Letter Code, Loan/Receivable Types, and Interest
Paid During. Click 'Preview Customers' to generate the report of Customers.
Next click 'Generate Mail' which will add the letter to Mail Queue.
4-
Reports/Queued Mail Printing - Select Mail Type =
Letterhead and Click Show Mail. Check either ALL or individual letters to
print. Click Print Mail then Update Mail to complete the audit trail
for Loan/Receivable History.
5-
If desired,
you may notify Customers through a message on the billing statements.
Go to OM/LetterMaintenace and add desired text and the replaceable tag
<PRIOR
YTD INTEREST>.
Remember, that because of
status change or paid in full, not all Customers who paid interest during the year
will necessarily receive a bill statement.
If you are exiting the Loan/Receivables through
Customer Services / Exit a Loan/Receivable, that
process is fine for Customers with only 1 Loan/Receivable requiring exit.
When multiple Loan/Receivables require exit, you
need to use the exit process that
is provided through the Import tab. Remember, a 'true Import file'
is not required for you to use
the Apply processes.
If you are exiting The Loan/Receivables through
Customer Services / Exit a Loan/Receivable.
That process is fine
for Customers with only 1 Loan/Receivable requiring exit.
When
multiple Loan/Receivables require exit, you need to use the exit process that
is provided through
the Import tab. Remember, a 'true
Import file'
is not required for you to use the Apply processes.
If you want to re-enroll the Loan/Receivables you have already processed through BS, please do so before proceeding with the following steps.
Click
the Import tab.
Select
Apply Exit records.
Click the Add icon across bottom of screen.
Give a batch name (i.e.Spring 09 Grad).
Supply the seperation date that you wish to begin Grace Period.
Click Save- now your new 'file' is listed in the Batch Name column.
Click Add Records to the right of our batch.
Enter either the Customer ID or SSN and click Find.
Screen is then populated with the Customer details.....Save
IGNORE
the following message that you will
receive 'No Customers
match the Customer ID/SSN/Last Name entered.
Please try again.'
This is
a fluke that is being
corrected. Your batch number of Unprocessed
records is
increased and the Customer is added to the file..(you may use spyglass
to 'view').
Continue adding your Customers.
Now you are ready to Exit these Customers (all E-status Loan/Receivables). Select Automatic Processing to Yes if you donot care to review each record. Click Save.
You may review them by looking at the Account grid and history.
Next, you will Print the Exit materials: Reports/Queued Mail Printing.