Lending Common Questions

I. Credit Bureau Reporting

A. Loan Suffixes and Bankruptcy Reporting

When a loan suffix is marked as “Included in Bankruptcy” within the FLEX system, it serves as informational data for internal FLEX reports and screens. However, for accurate credit bureau reporting, additional steps are required.

• Credit Union Responsibility: Credit unions MUST explicitly indicate the type of bankruptcy reported to the credit bureau.
• Configuration Location: This is configured using the “Consumer Information Indicator” field.
  • Path: Located under the “Credit Bureau” tab within Loan Maintenance.
  • Available Indicators:
    • A – Petition for Chapter 7 Bankruptcy
    • B – Petition for Chapter 11 Bankruptcy
    • C – Petition for Chapter 12 Bankruptcy
    • D – Petition for Chapter 13 Bankruptcy
    • E – Discharged through Bankruptcy Chapter 7
    • F – Discharged through Bankruptcy Chapter 11
    • G – Discharged through Bankruptcy Chapter 12
    • H – Discharged through Bankruptcy Chapter 13
• Co-Borrowers in Bankruptcy: For co-borrowers in bankruptcy, the type of bankruptcy must be marked in Collateral Maintenance.

B. Trust and Business Account Reporting

Trust and Business accounts are NOT reported to the credit bureau by default.

• Exception: These accounts are only reported if a Co-Borrower is associated with the account.
• Configuration Steps for Co-Borrowers:
  1. Flag the individual as a Co-Borrower through the Collateral Maintenance screens.
  2. Select the “Report to Credit Bureau” option for that co-borrower.

II. Credit Card Billing Cycle Functionality

The credit card billing cycle in the FLEX system performs several critical automated processes.

• Key Functions of the Billing Cycle:
  • Annual Fee Posting
  • Over-Limit Fee Posting
  • Calculation of Month-to-Date (MTD) Loan Activity
  • Finance Charge Posting
  • Calculation of Minimum Required Payment
  • Refunds for Military Annual Percentage Rate (MARP) Credit Card Loans
  • Loan Due Date Advance (for Non-Delinquent Loans)
  • Statement Printing

A. Inclusion of Specific Member Types in Billing Cycle

The inclusion of bankrupt, charged-off, or delinquent members in the credit card billing cycle is configurable.

• Configuration Location: These options are managed within the “Credit Card Control Parameters”.
  • Path: Navigate to Credit Card Control Parameters and review the “Configuration” tab within the Billing Cycle Options section.
• Key Options within Billing Cycle Options (Configuration Tab):
  • Last Billing Date: Displays the last processed billing date.
  • Max Days Delinquent For Processing/Statements: Sets the maximum delinquency days for processing and statements.
  • Discontinue Overlimit Fee After: Configures the period after which overlimit fees are discontinued (e.g., “55 consecutive months without new debits”).
  • Minimum Days Loan Open Before Variable: Specifies the minimum days a loan must be open before variable rate application.
  • Purchase Return End-Of-Period Crossover Days: Defines crossover days for purchase returns.
  • Maximum Fees Charged in First Year: Sets the maximum fees allowed in the first year.
  • Maximum Military Annual Percentage Rate (MAPR): Defines the maximum MAPR.
  • Consider Account Holder Bankruptcy Setting: Determines if the system considers the account holder’s bankruptcy status.
  • Exclude Unpaid Interest From Average Balance: Option to exclude unpaid interest from average balance calculations.
  • Post Late Fees During Billing Cycle: Enables or disables posting of late fees during the billing cycle.
  • Grace By Entire Loan: Specifies if grace period applies to the entire loan.
  • Overlimit Fee if Overlimit Any Time in Cycle: Determines if an overlimit fee is charged if overlimit at any time in the cycle.
  • Include Inactive Accounts in Cycle: Option to include inactive accounts in the billing cycle.