Processing Account Overdue Letters for Consumer Loans

Purpose

Details the search criteria required to review overdue letters for compliance with CCCFA regulations.

Repossession Warning Expiry

If a repossession notice has not been sent within 60 days of the Repossession Warning, then the Repossession Warning is considered to be expired, and repossession may no longer take place. A repossession warning notice must be re-issued.

Oppression Threshold for Arrears Balances

Repossession notices cannot be issued in an oppressive manner. E.g. Issuing repossession notices for arrears balances less than a reasonable value. It is up to each business to determine what their oppression threshold is.

Payment of Arrears last notified

Repossession Notices may not be issued if the client has repaid the arrears balance stated in the repossession warning notice (even if they remain in arrears).

Access

1. Fixed Loan | Review and Create Overdue Letters
   

Process

Review Letters for Expired Repossession Warning Notices

Field	Explanation
Subsequent Letters to Send	Check this filter on
Letter due on or before date	Delete the date from this field
Letter Expiry Date	Enter todays date to this field

This will display only letters that have an expiry date of today or earlier

Use the  function to review each letter that has expired and make appropriate changes – usually either to change the Next Letter back to the Repossession Warning notice OR enter notes as to why the repossession warning has not expired and keep the letter the same.

Once this list is has been reviewed:

Review Letters under the Oppression Threshold

Field	Explanation
Letter Expiry Date	Delete this Date
Letters due on or before date	Enter todays date to this field
Letter	[F2] and  your Repossession Notice

A list of accounts will display.

Click on the column header ‘Current’ twice. This will then order the letter results in arrears balance order.

For each account that has a current ledger balance less than the oppression threshold,  the letter and make required changes, usually either to return the letter to a repossession warning or reminder letter or to place the letter under ‘arrangement.

Payment of Arrears last notified

Once you have made the required changes for the oppression threshold, click  again. You should now have only a list of repossession notices over the oppression threshold.

Field	Explanation
Display Paid Arrears	Check this on

It is assumed that the Letters due on or before and Letter field will still be selected.

 

If any accounts are displayed, this indicates that they have paid more than the last letter arrears balance, and cannot be issued a Repossession Notice.

 the letter and make the required changes, usually to return the letter to the Repossession Warning Notices.

Credits to the account may be viewed via the  dialog.

Once this processing is complete, standard overdue letter processing can begin.

• Related Articles

• 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 ...

• Overdue Account Letter Browse

  Purpose Allows Overdue Account Letters to be created, reviewed, and dispatched Timing Final Task of the Arrears Processing Access From Fixed Loan, Lease or Variable Loan modules Review and Create Overdue Letters Search Criteria Note: This Browse ...

• Suspending Overdue Letter Processing for an Account

  Purpose Overdue Letter Processing may be suspended for individual accounts if it is no longer in the interest of the finance company to do so. An example would be if a client was confirmed as gone no address or has advised they are unable to pay the ...

• Account Letter Details (Setup)

  Purpose Set up the sequence of Overdue Letters for each lending module. There will be a separate sequence for each lending module. There can be more than one sequence for any lending module. The sequence will determine the rules to be used by the ...

• Create Overdue Letters

  Purpose Automatically send a single reminder or suspended letter to the Bailment Dealer for Curtailment, Fee and Asset Sale arrears based on Arrears Days parameters. A list (table) of all overdue invoices will be included in the generated ...