Temenos Lifecycle Management Suite - Recovery Product Guide
Recovery Accounts

Once an account has been charged off, it becomes a recovery account. From this point, an institution is able to view details such as recovery account status, balance, charged-off date, and interest rate. Additionally, recovery accounts may enter into a repayment plan, where the debtor agrees to pay back the amount that has been charged off. If a formalized repayment plan cannot be arranged with the debtor, recovery agents are able to apply transactions directly to the recovery account should a payment be received.

Depending on an institution's configuration, one or more account screens and workflows may be employed to work recovery accounts.

Recovery Account Information

Recovery account information is accessible on user-defined Account screens that are created by institutions in System Management > Screens. The following list encompasses the panels or logical field groupings that may be configured at an institution:

The aforementioned account information may be assigned to one or across multiple user-defined screens. Refer to the Screens section of the Administrator Guide for more information on configuring account screens and panels.
The Recovery Overview screen is only available for customers who have upgraded to Lifecycle Management Suite release 15.05 and who have the Recovery module active at the time of the upgrade. If not an upgrade customer, please contact Temenos Customer Care to implement a similar screen.

Basic Recovery Account Details

Basic Recovery Account Details consists of a variety of top-level recovery account fields organized within an account panel type.

 

These fields may consist of the following top-level fields:

Basic recovery account details may also consist of Initial fields, such as Initial Balance, Initial Interest, and Initial Principal. Additionally, this panel may also include 1099c fields, such as Debt Description, Fair Market Value, IRS Identifiable Event Code, and Is Debt Cancellation Reported.

In addition to the fields noted above, the Recovery fields included in the following section are automatically set each time data is modified on a recovery account:

ShowAutomatically Calculated Recovery Fields

The following fields are automatically calculated for a recovery account based on payment details and/or values set within Recovery fields: 

Field Description Example
Days Since Last Payment

Indicates the number of days since a payment was last made on the recovery account. This field is calculated based on the difference between the Last Payment Date and the current date.

If a value for Last Payment Date does not exist, Days Since Last Payment is left blank.

If the Last Payment Date for a recovery account is 8/20/2015, and the current date is 8/27/2015, Days Since Last Payment is set to 7.

Delinquent Amount

Indicates the total amount that the recovery account is delinquent. This field is calculated based on the sum of all General Ledger balances for the recovery account.

The General Ledger balances for a recovery account can be viewed in the Recovery Balances Summary screen. For more information on this screen, please see the Recovery Balances Summary topic in this guide.

Based on the value of the INCLUDE_NON_REIMBURSABLE_IN_BALANCE field set by the system administrator in the Recovery Settings tab of the Recovery page (System Management > Modules > Recovery), Non-Reimbursable Expenses and Non-Reimbursable Other may be included in this calculation.

For more information on the INCLUDE_NON_REIMBURSABLE_IN_BALANCE field, please see the Recovery topic in the Administrator guide.

The following General Ledger Entries exist for a recovery account:

General Ledger Amount Credit/Debit
Principal $5000 Debit
Interest $500 Debit
Principal $300 Credit

In this example, the Current Balance field is set to $5200 ($5000 + $500 - $300).

Delinquent Days Indicates the number of days that the recovery account is delinquent. This field is calculated based on the difference between the Charge Off Date and the current date. If the Charge Off Date for a recovery account is 7/21/2015 and the current date is 8/24/2015, Delinquent Days is set to 35.
Is Fractional Amount Indicates that a component GL balance for a recovery account includes an amount that is below a penny. This field is set to true when any of the component GL balances for a recovery account include a fractional amount that is below a penny. If Principal has a balance of $800.2377, the Is Fractional Amount flag is set to true for the recovery account.
Last Balance Change Date

Indicates the date that the balance for the recovery account was last changed due to a transaction on the recovery account or any associated repayment plans.

While this field includes reversed transactions, the Last Balance Change Date is not updated for interest transactions.

This is a read-only field that is set based on the date of the most recent transaction that does not have a Transaction Code with a category of Interest.

The following three transactions exist for a Recovery account:

Posting Date Effective Date Amount Transaction Code
8/01/15 8/01/15 $150 200
8/10/15 8/10/15 $150 100
8/20/15 8/08/15 $150 100

The Transaction Codes for the above transactions are configured as follows:

Transaction Code Category
100 Payment/Recovery
200 Adjustment

In this example, the Last Balance Change Date is set to 8/20/2015 since that is the most recent transaction and the transaction code does not have a category of interest.

Last Payment Date Indicates the date that a payment was last received for the recovery account. This field is set based on the most recent Effective Date for a payment that has a Transaction Code with a category of Payment/Recovery and a Posting Type of credit.

The following three transactions exist for a Recovery account:

Posting Date Effective Date Amount Transaction Code
8/01/15 8/01/15 $150 200
8/10/15 8/10/15 $150 100
8/20/15 8/08/15 $150 100

The Transaction Codes for the above transactions are configured as follows:

Transaction Code Category Posting Type
100 Payment/Recovery Credit
200 Adjustment Debit

In this example, the Last Payment Date is set to 8/08/2015 since that transaction has the most recent Effective Date and includes the appropriate transaction code.

Per Diem

Indicates the amount of interest being applied to the recovery account daily.

The value of the Per Diem field is displayed in six decimal places and does not include a money sign ($).

This field is calculated based on the interest rate and the value of the Default Calculation Method configured by the system administrator in the Recovery Settings tab of the Recovery page in System Management

For more information on the Default Calculation Method field, please see the Recovery topic in the Administrator guide.

The Per Diem calculation for each Calculation Method is as follows:

  • If the parameter is set to ACTUAL/ACTUAL, the Interest rate is divided by the number of days in the year.
  • If the parameter is set to ACTUAL/360, the Interest rate is divided by 360.
  • If the parameter is set to ACTUAL/365, the Interest rate is divided by 365.
If the interest rate for a recovery account is 15.000000 and the Default Calculation Method is set to ACTUAL / 365, the Per Diem field is set to 0.041096.

Recovery Interest Rates

The Recovery Account Interest Rates panel provides recovery agents the ability to determine a recovery account's interest rate configuration. This panel displays all of a recovery account's interest rates or accounting rules. From this panel, users are able to easily view the interest rate details associated with a recovery account as well as quickly add and manage interest rates directly within the workspace.

For more information on this panel, please see the Recovery Account and Repayment Plan Interest Rates topic.

Recovery Account Payoff Quote

The Recovery Account Payoff Quote panel provides recovery agents with the ability to create and manage payoff quotes for a recovery account. A payoff quote is required in business situations, such as the debtor receiving a significant sum of money, wanting to pay off a single account or asking for a payoff towards the end of their repayment plan.


 

For more information on this panel, please see the Recovery Account and Repayment Plan Payoff Quotes topic.

Recovery Balances Summary

The Recovery Balances panel provides recovery agents the ability to view ledger and total balance information for Recovery Accounts and Repayment Plans (if associated).

For more information on this panel, please see the Recovery Balances Summary topic.

Related Repayment Plans 

The Related Repayment Plans lists all of the Repayment plans for the Person or Account in context. This panel allows users to quickly access the existing repayment plans in order to allow the details to be viewed/modified.

For more information on this panel, please see the Related Payment Plans topic.

Recovery Overview Screen

The Recovery Overview screen is only available for customers who have upgraded to Lifecycle Management Suite release 15.05 and who have the Recovery module active at the time of the upgrade. If not an upgrade customer, please contact Temenos Customer Care to implement a similar screen.

The Recovery Overview screen is a pre-configured screen that enables the ability to view high-level Recovery account details such as Recovery account status, balance, charged-off date, and interest rate. Additionally, this screen includes Initial fields, such as Initial Balance and Initial Interest, and 1099c fields, such as Debt Description and Fair Market Value. From this screen, users are able to easily view the top-level details associated with a recovery account as well as quickly add and manage interest rates and payoff quotes directly within the workspace.

This screen replaces the old Recovery Overview and Recovery Summary screens.

This screen is comprised of four tabs:

For more information on each tab within this screen, please see the Basic Recovery Account DetailsRecovery Account Interest RateRecovery Account Payoff Quote, and Recovery Balances Summary sections of this topic.

Recovery Account Actions

Within Account screen types, the following buttons allow debt collectors to perform actions on recovery accounts:

Recovery Transactions

Throughout the recovery process, payments from debtors can be applied to recovery accounts through transactions. The Recovery solution's transaction processing engine provides the ability for users to apply transactions to accounts at one time as well as generate General Ledger (GL) entries in a few simple steps. To process a transaction on a recovery account, click .

For more information on processing recovery transactions, please see the Recovery Transactions topic.

Finalizing a Recovery Account

The recovery process is completed when an account is paid in full and has been finalized by a user with the appropriate permissions. To finalize a recovery account, click .

  is disabled if the repayment plan has a status of Recovery Account Completed or Recovery Account Cancelled, as indicated by the Recovery Account Status Id field. This field can be added to repayment plan type screens and  may be added to Account screens. Additionally, the Finalize Recovery Account/Repayment Plan permission must be set to Change within Users and/or Security Groups in System Management in order for the button to be enabled.

Once clicked, a message appears to confirm that the repayment plan should be finalized. Click Yes to proceed with the finalization.

The finalization process performs the following validations:

If any of these validations fail, a message appears to the user containing suggestions for how to resolve the issue so the recovery account can be finalized.

Once the recovery account passes the aforementioned validations, it is finalized and the Recovery Account Completed Date is set to today's date. Additionally, a message appears to indicate that the finalization has been successful. Click OK to close the message and return to the recovery account screen.

 

 


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