Collection Letter Automation

Lending Lending Collection Letter Automation

1. Introduction

Collection Letter Automation in the FLEX system empowers credit unions to automatically generate share or loan collection letters during the End-of-Day (EOD) process. This automation is triggered when specific criteria are met, streamlining communication with members regarding delinquent accounts.

2. Prerequisites

Before setting up Collection Letter Automation, you must first create the desired collection letters within Collection Code Maintenance.

3. Accessing Collection Letter Automation

To access and configure Collection Letter Automation, follow these steps:

  1. Navigate to Collections.
  2. Expand Configuration.
  3. Select Collection Letter Automation.

The “Collection Letter Automation” screen will display all letters currently configured for automation.

4. Collection Letter Automation Screen Overview

The main screen lists automated collection letters with the following columns:

  • Seq #: A system-generated number identifying each letter sequence in the automation process.
  • Description: A descriptive name for the letter (e.g., “10 Day Delinquent Letter”).
  • Letter Co… (Letter Code): The code identifying the specific collection letter from Collection Code Maintenance.

Available Actions:

  • Resequence: Allows you to renumber the sequence of letters after making changes.
  • Add: Adds a new letter to the automation process.
  • Copy: Creates a new automated letter by copying an existing one.
  • Edit: Modifies the criteria for an existing automated letter.
  • Delete: Removes a letter from the automation process.

5. Editing a Collection Letter for Automation

When you add a new letter or edit an existing one, the “Edit Collection Letter” screen appears, allowing you to define the specific criteria for automation.

5.1. General Letter Information

  • Sequence #: System-generated number.
  • Letter Code: The code of the collection letter from Collection Code Maintenance that will be printed when conditions are met.
  • Letter Description: A descriptive name for the letter.
  • Loans/Shares: Indicates whether this letter should print for shares, loans, or both.

5.2. Current Balance Criteria

These settings control whether the letter is generated based on the account’s current balance.

  • Ignore?:
    • Yes: Print the letter regardless of the current balance.
    • No: Print the letter based on the current balance (required for negative share accounts).
  • From/To: If “No” is selected for “Ignore?”, define the minimum and maximum current balance amounts required to generate this letter. For negative share accounts, use the (-) key for negative numbers.

5.3. Days Delinquent/Negative Criteria

These settings control whether the letter is generated based on the account’s delinquency or negative status.

  • Ignore?:
    • Yes: Print the letter regardless of delinquency or negative status.
    • No: Print the letter for accounts that are not delinquent or negative.
  • From/To: If “No” is selected for “Ignore?”, define the minimum and maximum number of days an account can be delinquent (for loans) or negative (for shares) to generate this letter. Enter 0 for accounts with same-day payments due or same-day negative activity.

5.4. Account Type Filter

This filter allows you to specify which share and loan types will generate a letter.

  • Click Maintain to add specific share and loan types. Only the selected types will generate a letter.
  • Leave this field empty if the letter should generate regardless of the share or loan type.

5.5. Letter Print Restrictions

These settings prevent the generation of duplicate or excessively frequent letters.

  • No Other Letters Printed Today: Controls whether a letter prints if another letter has already been generated for the account on the same day.
    • Yes: Only print if no other letter from a previous sequence has been generated today for the account.
    • No: Print regardless of whether another letter was generated today.
  • Days To Not Print Again: Enter the number of days that must pass between printings of this specific letter.
    • Example: Entering 5 will prevent the same letter from generating for at least five days, even if the account still meets other criteria. This does not prevent other letters from generating if they meet their criteria.
  • Do Not Print if Letter Code [has] Been Entered in the Last [XX] Days: Prevents this letter from printing if a specific letter code has already been printed within a defined number of days.
    • Enter the Letter Code to check against.
    • Enter the maximum number of days (XX) to look back.
    • Example: Entering 30 will prevent this letter from printing if the specified code was printed within the last 30 days.

5.6. Loans Only Criteria

These settings apply specifically to loan accounts.

  • First Payment Late?: Select whether the letter should only generate if the first loan payment has not been received.
  • Ignore Amount Delinquent?:
    • Yes: Print the letter regardless of the amount delinquent.
    • No: Print the letter based on the amount delinquent.
  • From/To: If “No” is selected for “Ignore Amount Delinquent?”, enter the minimum and maximum delinquent amounts required to generate the letter.

5.7. Shares Only Criteria

These settings apply specifically to share accounts.

  • Courtesy Pay Used Today?: (Required when “Shares” is selected in “Loans/Shares”)
    • Yes: Letters will only generate for accounts that used courtesy pay today.
    • No: Letters will only generate for accounts that have not used courtesy pay today.
    • Ignore: Letters will generate regardless of whether courtesy pay was used.
  • Include Accounts With Courtesy Pay?: (Checkbox)

5.8. Follow Up To Previously Entered Code

This section allows for advanced automation based on previous collection activities.

  • Previously Entered Code: If this letter should only print as a follow-up to a previous letter, specify the previously printed letter code (e.g., for a “broken promise to pay” letter).
  • Ignore Number of Days Since Code Entered?:
    • No: Enter “From” and “To” dates for the “Previously Entered Code” field to be considered.
    • Yes: The letter will generate regardless of when the “Previously Entered Code” was printed. This is often used with “DATE2 from Code has Passed” and “No Payment Since Code Entered.”
  • Code Entered From/To: If “No” is selected for “Ignore Number of Days Since Code Entered?”, enter the minimum and maximum number of days to look for the previously entered code.
    • Example: To look for a code entered in the last month, enter 0 in “From” and 30 in “To.”
  • Use AMOUNT2 from Previous Code:
    • Yes: The value entered in the AMOUNT2 field of the previously entered code will be used as the AMOUNT2 value for this letter.
    • No: The AMOUNT2 value from the previous code will not be used.
  • Use DATE2 from Previous Code:
    • Yes: The value entered in the DATE2 field of the previously entered code will be used as the DATE2 value for this letter.
    • No: The DATE2 value from the previous code will not be used.
  • Use Date Code Entered as DATE2:
    • Yes: The date the previously entered code was printed will be used as the DATE2 value for this letter.
    • No: The date the previous code was printed will not be used.
    • Example: “On <DATE2> we sent you a letter in regards to this matter…”
  • DATE2 from Code has Passed:
    • Yes: Only print the letter if the date in DATE2 of the previously entered code has passed.
    • No: Print the letter if all other conditions are met, regardless of the date in DATE2.
  • No Payment Since Code Entered:
    • Yes: Only print the letter if no payments have been received since the previous entered code was entered.
    • No: Print the letter if all other conditions are met, regardless of whether payments were received since the previous code was entered.

Note: AMOUNT2 and DATE2 are user-defined tags created in Collection Code Maintenance. This section is primarily used for follow-up automated letters where a collection officer has already entered user-defined information.

6. Confidentiality Notice

This document is published by Computer Marketing Corporation/FLEX and is intended solely for its contracted clients. It may contain information that is privileged, confidential, or otherwise protected from disclosure. Dissemination, distribution, or copying of this document and any accompanying attached information by someone other than the intended recipient(s), or an employee or agent acting on behalf of the intended recipient, is strictly prohibited.