Processing Account Overdue Letters
Purpose
To
create and dispatch Overdue Letters which are legally required for the recovery
of arrears
Note: Additional
processing is required for consumer loans. See: Processing Account Overdue Letters for Consumer Loans.
Access
- Fixed Loan | Review and Create Overdue Letters
- Variable
Loan | Review and Create Overdue Letters
- Lease |
Review and Create Overdue Letters
Setup
Once the set up structures are in place a
routine can be run from any lending system that will allow the automatic
generation of letters for any accounts in arrears.
Process
Separate menu options are available to
process Overdue Letters for each lending system. They all operate in the same way, so only the
fixed loan process is described here.
The Review and Create process displays the
screen below. The only difference
between these screens when entering from a different system is the System
display. This will indicate the system
you are doing the Overdue Letter run for.
The letters displayed in this screen
are the letters, flagged by the system, that are due to be created. The information on this screen is dynamic and
not saved to the database.
Note
Each of the above checkbox fields is
mutually exclusive. If only one is
ticked on when the 
button is
pressed, only letters fulfilling those criteria will display. If two are clicked on, the letters that
satisfy one or other of the criteria
will display. If all of them are ticked
on, all Overdue Letters will display.
Any combination of these can be
ticked on or off.
There
is a risk that accounts that have been set to Arrangement or Suspended may be missed.
Every
time the Review and Create Overdue Letter process is run, once the usual Overdue
Letters have been created, always tick on the Display Arrangements and Display
Suspended so these accounts can be reviewed on a regular basis.
Field | Explanation |
System | This is a display field only It will display the system from which the
review and create process is currently being run |
Display Arrangements | Tick this box on if you wish to display all
accounts that have the letter indicator set to ‘Arrangement’ |
First Payment Missed Letter | Tick this box to display all Overdue Letters
where the very first instalment posting has not been paid and the account
letter indicator is ‘Normal’ |
First Letters to send | Tick this box to display all accounts, with
letter indicator set to ‘normal’, that are due to have the first arrears letter
as defined by the First Overdue Letter setup in the relevant lending account
type. |
Subsequent Letters to send | Tick this box to display all remaining Overdue
Letters with letter indicator set to ‘normal’ |
Set Required Flag | Once the selection required has been
determined, this tick box will determine the letter status that is to be set If the box is not checked, all
letters displayed will have a default of No to be created. Their letter
status can still be set to Yes but not automatically |
Display Suspended | Tick this box on if you wish to display all
accounts that have the letter indicator set to ‘Suspend’ |
Display Paid Arrears | Check this on to restrict to those
accounts were the total payments received exceeds the last letter balance |
Number of Letters | This is a display only field that shows the
number of letters that satisfy the selection criteria |
Letter due on or before | This will default to today’s date on the PC this
routine is run from The date can be
altered to an earlier or later date All
accounts up to and including the date specified will be selected, depending on the parameters checked on above |
Letter Expiry Date | This field will be enabled if the
Letters due on or before date is deleted |
Overdue Amount | Enter here an amount under which Overdue Letters
will not be displayed This is used to
suppress the selection of accounts with small arrears amounts where it is
uneconomical to send letters. |
Letter | It is possible to select Overdue Letters by the
type of account letter This can decrease the size of the list to be processed
by selecting each letter type in turn This will normally be used in conjunction with the Second letter to send
tick box. |
Dealer Account | It is possible to select Overdue Letters by
Dealer This can decrease the size of
the list to be processed by selecting each Dealer in turn. |
Account Type | It is possible to select Overdue Letters by
Account Type This can decrease the size
of the list to be processed by selecting each Account Type in turn. |
Vendor Program | It is possible to select Overdue Letters by
Vendor Program This can decrease the
size of the list to be processed by selecting each Vendor Program in turn |
Currency | It is possible to select Overdue Letters by
Currency This can decrease the size of
the list to be processed by selecting each Currency in turn. |
Company | It is possible to select Overdue Letters by
Company This can decrease the size of
the list to be processed by selecting each Company in turn. |
Warning Indicator | It is possible to select Overdue Letters by
Warning Indicator This can decrease the
size of the list to be processed by selecting each Warning Indicator in turn |
Once the Letters to be reviewed have been
selected click
This will display all accounts meeting the
search criteria. Each account will be
displayed with either a Yes or No under the heading Letter. The Letter indicator is determined by the Set
Required Flag tick box.
Example 1
This screen displays all letters due on or
up to the 26/11/14, that have an arrears balance in excess of $50.00. First payment missed letters have been
selected and the Set Required Flag is not ticked so the Letter status is
No. The number of letters that satisfy
the above criteria is 2.
Example
2
This screen displays all letters due on or
up to the 26/11/14, with a dealer of Dealer 01, a Vendor Program of NU and an
arrears balance in excess of $50.00. All
letters other than the first letters to send have been selected and the Set
Required Flag is ticked so the Letter status is Yes. The number of letters that satisfy the above
criteria is 3.
Set Required Flag
For larger finance companies where there is
insufficient time to review individual accounts to determine if a letter should
be sent or not, this flag will be set on and the 
button clicked.
Smaller finance companies tend to have a
more personal relationship with their clients and will want to review the
letters prior to creating. In their case
the Set Required Flag will not be ticked on and the Letter indicator will be
No. It is then possible to work down the
list of accounts, review them using the buttons described below, and the double
clicking on the line to change the Letter indicator to Yes.
Once this process has been completed there
will be a mixture of accounts displayed with their Letter flag set to either
Yes or No. When the 
or button is clicked, all accounts
with a Yes indicator will have a letter created.
Review and Create Letters Specific Buttons
During the review and create process you may
wish to check some accounts to determine if a letter should be sent, change the
letter to be sent or investigate why the account is in arrears. There are specific buttons at the bottom of
the Account Letter Browse to facilitate this.
| Button | Explanation |
Once all letters have been selected as per the above criteria, click on this button to create the letter ready to be printed or dispatched from the Communication Browse | |
Once all letter have been selected as per the above criteria, click on this button to create the letter ready to be printed | |
This button will allow access to the Overdue Letter details so changes can be made if necessary | |
| The button will allow direct access to the relevant loan system account highlighted in the selection screen above | |
The button will allow direct access to the relevant account enquiry dialog highlighted in the selection screen above |
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