Share Collections and Repayment Plans

Video Library Video Course Library Share Collections and Repayment Plans

This information provides technical guidance for users of the FLEX System regarding Share Collections and Repayment Plans. This optional feature, integrated with Overdraft Privilege Plus, facilitates the identification of negative share accounts and their enrollment into structured repayment plans.

1. Overview

The Share Collections and Repayment Plan feature allows credit unions to:

  • Recognize and manage negative share accounts.
  • Enroll members into predefined repayment plans.
  • Automate aspects of collections, including letter generation and payment tracking.

2. Accessing Share Collection Programs

Share Collection programs are accessible from the FLEX Main Menu under the Collections section:

  • FLEX Main Menu
    • Collections
      • Share Collections
        • Reports
          • Add New Coll/Repaym Members~
          • Maintain Share Coll/Rep Members~
          • Print Coll/Repaym Letters & Forms~
          • Share Coll/Repaym Letter List~
          • Share Collec/Repaym Plan List~

3. Defining Repayment Plans

The initial step for utilizing this feature is to set up repayment plans. Multiple plans can be defined, but each plan must be unique and its parameters cannot overlap.

3.1. Accessing Plan Parameters

To add, maintain, or view plan parameters, navigate to:

  • Share Collect/Repayment Plan List option.

3.2. Examples of Repayment Plans

Repayment plans can be structured based on various criteria, such as:

  • Term Length:
    • Short Term / Long Term
    • 30 Day / 45 Day / 60 Day
  • Negative Amount Range:
    • $100 – $500 Negative
    • $501 – $1000 Negative

3.3. Repayment Plan Configuration (SC10115)

The SC10115 screen is used for Overdraft Repayment Plan Selection Maintenance. Key fields and their descriptions are as follows:

  • Plan ID: Unique identifier for the repayment plan.
  • Description: A descriptive name for the plan (e.g., “SHORT TERM”).
  • Neg Days From/To:
    • Purpose: Defines the range of consecutive days a share account must be negative to be eligible for this plan.
    • Example: From 0 To 999
  • Neg Amount From/To:
    • Purpose: Defines the range of the negative share account balance to be eligible.
    • Example: From .01 To 250.00
  • Debit GL Offset:
    • Purpose: Specifies the General Ledger (GL) account number to be debited when an account is accepted into the plan.
    • Process: The GL account is debited, and the member’s share account is credited, bringing the share account balance to zero.
  • Payment Terms:
    • Purpose: Indicates the duration of the repayment plan in conjunction with the payment frequency.
    • Example: 6 (for 6 months)
  • Freq:
    • Purpose: Used with Payment Terms to indicate the frequency of payments (e.g., M for Monthly).
  • Allow Partial:
    • Purpose: Determines if partial payments are permitted (Y for Yes, N for No).
  • Control Flag to Set: Currently not in use.
  • Minimum Age:
    • Purpose: Specifies the minimum age of a member to be eligible for the plan.
  • Min Membership Days:
    • Purpose: Indicates the minimum number of days a member’s account must be open to be eligible.
  • Min Draft Acct Days:
    • Purpose: Indicates the minimum number of days a share draft account must be open to be eligible.
  • Max Loan Delqn Days:
    • Purpose: Specifies the maximum number of days a loan can be delinquent while the member remains eligible for the repayment plan.
  • Max Consecutive NSF Overdraft Days:
    • Purpose: Defines the maximum number of consecutive days a share account can be negative due to NSF overdrafts and still be eligible.
  • Turn Off Courtesy Pay (Y/N):
    • Purpose: If set to Y, Courtesy Pay will be turned off for the share account upon acceptance into the repayment plan. This changes the Allow Courtesy Pay flag to N in Share Maintenance.
  • Turn Off Overdraft (Y/N):
    • Purpose: If set to Y, Overdrafting will be turned off when the share account is accepted into the repayment plan.
  • Payment Due Day:
    • Purpose: Sets the default day of the month for payments to be due. This can be customized per member.
  • Courtesy Pay Member Only:
    • Purpose: If set to Y, only members with Courtesy Pay will be eligible. If N, any negative share account is eligible regardless of how it became negative.
  • Contact Info: Fields for inputting credit union contact information (Name, Title, Phone).

4. Adding New Collection/Repayment Members

Once repayment plans are configured, the Add New Coll/Repaym Members option is used to identify eligible share accounts.

4.1. Accessing the Option

  • Accessed under Share Collections in the FLEX Main Menu.

4.2. Functionality

  • This option runs automatically when selected.
  • It identifies all share accounts meeting the criteria defined in the Repayment Plans.
  • Eligible accounts are placed into Maintain Share Coll/Rep Members for user review and acceptance.
  • Important: No accounts are automatically accepted into a plan; users must manually accept them. This option only identifies new eligible accounts since the last run.
  • This option can be integrated into daily procedures or End-of-Day (EOD) scripts, and must be run during initial program implementation.

5. Maintaining Share Collection/Repayment Members

The Maintain Share Coll/Rep Members option allows users to view and accept pending accounts into repayment plans.

5.1. Account Statuses (SC1020R)

The SC1020R screen displays accounts with the following statuses:

  • P (Pending): Member meets all criteria for a plan but has not yet been accepted.
  • A (Accepted): Member has been accepted into a plan.
  • D (Defaulted): Member was accepted but has missed a payment and defaulted.

5.2. Share Collection Maintenance (SC10215)

The SC10215 screen provides detailed information for a selected account:

  • Repayment Plan: Displays the Plan ID the member qualified for.
  • Status: Current status of the account within the plan:
    • P (Pending): Member meets criteria but not yet accepted.
    • A (Accepted):
      • Credit union must manually accept the member.
      • System credits the member’s share account for the negative amount, bringing it to zero.
      • System debits the general ledger.
      • FLEX tracks the current balance and payments received.
    • D (Defaulted):
      • System automatically changes status to D upon a missed payment.
      • System debits the member’s share account for the remaining owing amount and credits the general ledger.
  • Accept Date: Date the member was accepted (auto-updates when status changes to A).
  • Original Bal: Original negative balance amount.
  • # Payms: Number of payments required to repay the balance (default from plan, can be changed).
  • Beginning: Start date of the repayment plan.
  • Payment: Required scheduled payment amount.
  • Cur Bal: Current balance owed (original balance minus payments made).
  • Next Due: Next payment due date.
  • Amt Due: Payment amount due for the next payment.
  • Add Auto Transfer Flag:
    • Y: An automatic transfer record will be created to debit the member’s share account and credit the general ledger.
    • N: No transfer will be created. Member must make over-the-counter payments using OP code RP. Failure to use RP will prevent balance and payment tracker updates.
  • Last Payment Date: Date of the last payment received.
  • Original Negative Date: Date the share account initially went negative.
  • Member Information: Displays member’s name, address, current share account balance, original courtesy pay amount, and original overdraft code.

5.3. Accepting a Member into a Repayment Plan

  1. On the SC10215 screen, change the Status field to A.
  2. Press Enter.
  3. Verify the credit amount and general ledger account number.
  4. Press Enter again to activate the plan.

5.4. Post-Acceptance Verification

  • Transaction Entry/Inquiry View: The checking account history will show a transaction equal to the negative balance with the description REPAYMENT ACTIVE.
  • Plan Details and History: Available by right-clicking on the suffix and selecting Overdraft Repayment.
  • General Ledger View: A newly activated repayment plan is identified under the general ledger account by the description ACTIVE and the member account number.

6. Making Payments to a Repayment Plan

Payments can be made by transferring funds from a member’s account to the RP OP Code.

  • Manual Payments: If Add Auto Transfer Flag is N, payments must be made over-the-counter using the RP OP code.
  • Automatic Transfers: If making payments via automatic transfer, ensure the Overdraft Repayment Plan checkbox is selected in the transfer record.

7. Share Collection Letters and Forms

Letters and forms can be generated based on a member’s delinquency status, acceptance into a plan, or full repayment. These can be generated regardless of plan acceptance.

7.1. Valid Letter Options

  • Activation Letter: Generated upon member acceptance into a plan, indicating terms.
  • Paid Letter: Generated when the full negative balance is paid off.
  • Delinquency Letters:
    • 10 Day Letter: Generated when a member is 10 days delinquent.
    • 20 Day Letter: Generated when a member is 20 days delinquent.
    • 30 Day Letter – No Courtesy Pay: Generated when a member is 30 days delinquent, not due to Courtesy Pay.
    • 30 Day Letter – With Courtesy Pay: Generated when a member is 30 days delinquent due to Courtesy Pay.
    • 45 Day Letter: Generated when a member is 45 days delinquent, typically an account closure letter.

7.2. Share Collection/Repayment Letter List (SC10505)

This option allows users to view, add, or maintain collection letters.

  • Access: Found under Collections > Share Collections from the FLEX Main Menu.
  • Functionality: Displays standard default letters. The form ODRP is a disclosure repayment plan agreement.
  • Letter Configuration Parameters (SC10515):
    • Letter Code: Displays the code for the letter.
    • Description: Description of the letter.
    • Printer: Optional field for a default printer ID.
    • Form ID: Indicates the ID of a disclosure or form to be generated with the letter (often used for enrollment letters).
    • Printer (for Form): Printer ID for the disclosure form.
    • Turn Off Courtesy Pay: If Y, Courtesy Pay is turned off when the letter is triggered.
    • Restore Courtesy Pay: If Y, Courtesy Pay is restored (often used with Paid Off Letter).
    • Trigger Joint Owner Letter: If Y, a separate letter is triggered for joint owners.

7.3. Viewing/Maintaining Letter Verbiage (SC10565)

  • Place L in the OPT field next to a letter to access its verbiage.
  • Content:
    • Text not in brackets is hard-coded.
    • Tags: Use the Insert Tag button to merge individual account information (e.g., <NAME>, <ACCOUNT>, <CURBAL>).
    • End Tag: Always use the <END> tag at the end of the letter text to prevent blank pages from printing.

8. Reports

The Share Collection feature offers various reports in addition to letters and forms.

  • Archive Report:
    • Content: Lists accounts that have completed a repayment plan and been deleted from Maintain Share Coll/Rep Members.
    • Includes: Account, suffix, member name, original balance, current balance, last payment date.
  • Overdraft Balance w/ Aging Report:
    • Content: Lists accounts with negative balances eligible for a repayment plan but not yet accepted.
    • Includes: Account, suffix, member name, current negative balance, number of days negative.
    • Breakdown: Subtotals for 1-20 days negative and more than 20 days negative.
  • Overdraft Repayment Adjustment Report:
    • Content: Shows accounts where the current plan balance is less than the scheduled payment amount.
    • Includes: Account, suffix, member name, original balance, current balance, original number of payments in plan, payment amount.
  • Overdraft Repayment Transaction Report:
    • Content: Lists all accounts accepted into a repayment plan within a specified date range.
    • Includes: Account, suffix, member name, original balance, current balance, payment amount due, next due date.
  • Overdraft Repayment Trial Balance:
    • Content: A listing of all accounts currently accepted into a repayment plan.
    • Includes: Account, suffix, member name, plan date, next payment due date, original balance of plan, payment amount due, current balance.
  • Past Due Payment Report:
    • Content: Lists all accounts currently accepted into a repayment plan that are past due on payments.
    • Includes: Account, suffix, member name, original balance, current balance, payment amount due, next payment due date.