Delinquency Management

Transcription

1 2011 GSA SmartPay Training Conference Delinquency Management Deanne Burbee Senior Vice President, Citi

2 A Winning Hand: Solutions, Savings and Sustainability with GSA SmartPay The 13 th Annual GSA SmartPay Training Conference, Las Vegas

3 House Rules To ensure the best possible learning experience for participants, please adhere to the following house rules: Turn cell phones and pagers to vibrate Hold questions to end of session Ensure your participant badge is scanned to receive CLP credits For each course Must leave room and reenter Take advantage of opportunities to provide feedback Please select the Citi Q&A icon on any Citi PC at the conference Answers to be ed after the conference within 60 days 3

4 Goals & Objectives This session is designed to assist you in achieving the following goals: To provide information for new and existing AOPCs on how to best manage and minimize delinquency in your Individually Billed Travel Card Program 4

5 Goals & Objectives Delinquency Overview Delinquency Timeline/Critical Dates Common Causes of Delinquency Citi Collection Efforts Best Practices/AOPC Controls Delinquency Management Reports/Tools Current Card Results Summary Q&A/Contact Info 5

6 1. Delinquency Overview 6

7 Delinquency Overview Cards are individual liability The cardholder is solely responsible for the timely payment of balance upon receipt of billing statement GSA Contract requires usage of the card for all government travel Cardholder is only reimbursed for official Government Travel; personal use of card IS NOT allowed 7

8 Delinquency Overview (continued) Cardholder payment options Split disbursement (mandatory for Active Duty military) Alternative payment options Payment Type Checks Wire ACH Cardholder Statements & Payments (CSP) Method to Submit Payment Citibank Gov t Card Services, P.O. Box , Columbus, OH If made before 1:00 PM EST, should post the same business day Cardholder can call to pay-by-phone through their personal DDA account free of charge Cardholder can make an online payment using their personal checking (DDA) account free of charge Additional payment information is available online at under Resources; APC Guides; Payment Options Guide Reimbursement questions/issues contact DFAS Travel Assistance Center at HELP1GO 8

9 2. Delinquency Timeline Overview 9

10 Delinquency Timeline Overview Account Delinquency 10 GSA contract references the number of days past the cycle date; clock starts ticking when the account cycles and a statement is generated with a balance owing Critical Timelines/Events 61 Days Past Billing = Account suspension Account reopens after posting of full past due payment 75 Days Past Billing = Late Fee Assessed $ Days Past Billing = Account cancellation (permanently closed) Cardholder has received (6) letters, (5) statements and numerous calls from a Citi Collections Specialist to attempt a reasonable payment arrangement

11 Delinquency Timeline Overview (continued) Approximately 126+ Days Past Billing Account sent to DFAS for Salary Offset processing 211 Days Past Billing (charge off) = Reported to Cardholder s Personal Credit Bureau; and may be referred to Collection Agency or Attorney for additional Collection efforts Additional Account Cancellation Scenarios: (2) NSF checks within (12) month period Reinstatement: Reinstatement is not guaranteed, must meet eligibility criteria AOPC submits Reinstatement Application to (866) If application is Approved: $29 reinstatement fee applied on first statement; Account will be re-opened as a restricted card ($4,000 credit limit) Denied: Should wait 60 days to reapply One reinstatement permitted in life of account 11

12 Delinquency Timeline Overview Days Past Billing System Generated Letter Activity Events 0 Original Cycle Date 25 Original Payment Due Date 30 2 nd Cycle 45 Past Due Letter 55 Pre-Suspend Letter 61 Suspend Letter Account Suspends 91 Due Process/RPP Letter Pre-Cancellation Letter 126 Cancellation Letter Account Cancels/Closes Salary Offset File sent to DFAS 131 Salary Offset Inbound File from DFAS 211 Account Charges Off/Reports to Personal Credit Bureau 12

13 Delinquency Fee Timeline Days Past Billing Fee Type Activity Fee Amount 0 Original Cycle Date 25 Original Payment Due Date 30 2 nd Cycle 75 1 st Late Fee $ nd Late Fee $ Salary Offset Fee $ rd Late Fee $ th Late Fee $ th Final Late Fee $29 Assuming the cardholder does not make a full past due payment, the total fees assessed on the account prior to charge-off total $225 Without a full payment of the past due amount, fees will continue to be assessed each statement cycle until the account charges off Payment of full past due amount prior to due date will prevent subsequent Late Fees 13

14 3. Common Causes of Delinquency 14

15 Common Causes of Delinquency Causes Slow/manual reimbursements by agency DTS issues DTS kicking claim back without cardholder being notified DTS/Cardholder issue of not selecting Split Disbursement option Late or non-submission of travel vouchers Still on travel have not yet filed Waiting on final levels of approval Change in Duty Station (PCS) or (TDY) NSF returned checks Unclear on policy and/or procedures DoD 101 Travel Card Training is available on the GSA-SmartPay website Employee misuse Spending reimbursement vs. paying Travel Card Using card for personal use/miscalculating Per Diem 15

16 Common Causes of Delinquency (continued) Causes Cardholders believe that: They don t have to pay until after they are reimbursed They don t have to pay/file voucher until after they return from travel They are not responsible for late fees or salary offset fees The account will not report to personal Credit Bureaus They can use Card for personal use Card is not a Personal credit card, it is a Government Travel Card Separated Military Cardholders believe that: Balance is no longer their responsibility, especially if balance includes fees Once discharged from the DoD that collections efforts will cease APC/prior Command is unable to assist Citi with Cardholder information 16

17 4. Citi Collection Efforts 17

18 Citi Collection Efforts Collection Letters Past due letter (Sent at 45 days past billing) Advises account is currently past due and to pay immediately to avoid suspension of charging privileges Pre-suspend letter (Sent at 55 days past billing) Advises account is past due and if payment is not sent within (6) days of the date of the letter, charging privileges will be suspended Suspend letter (Sent at 61 days past billing) Advises charging privileges have been suspended due to non-payment. States they will automatically be restored when payment for past due amount has been received 18

19 Citi Collection Efforts Collection Letters (continued) Pre-cancellation/Due Process Letter (Sent at 91 days past billing) Advises account is currently suspended and subject to cancellation if payment not received within (6) days. References the potential for salary offset, and if there are any extenuating circumstances that prevent payment to contact your AOPC immediately Cancellation Letter (Sent at 126 days past billing) Advises that account has been canceled and will be added to the Cancellation Report that will be viewed by their AOPC and Commanding Officer/Supervisor. Also advises that their account will be sent for Salary Offset consideration 19

20 Citi Collection Efforts Collection Calls Cardholder is contacted by a DoD Collection Specialist beginning at 61 days past billing. The goal at this stage is to resolve the delinquency Calls will continue until payment and/or acceptable arrangements have been made; frequency of calls is determinate upon call response, account balance and follow-through on prior promise to pay arrangements The DoD Collection Specialist will attempt to resolve the delinquency by discussing available payment options, including Reduced Payment Programs 20

21 Citi Collection Efforts Collection Calls (continued) Once account charges off, it may be referred to a third party Collection Agency and/or legal network to pursue more stringent collection efforts Upon charge off (211 days past billing) the account reports as a R9 charge-off on cardholder s personal bureau 21

22 Citi Collection Efforts Statement Messages # Days Past Billing Statement Message We did not receive your payment last month. Please pay the total balance due at once. If you have remitted payment, please disregard this notice. Your account is past due and your charging privileges have recently been suspended. Please pay the past due balance immediately. Your account is seriously past due and may be canceled and submitted for Salary Offset if a payment is not received within 30 days. Please contact us at to discuss payment options. Your account is seriously past due and may be canceled and submitted for Salary Offset if a payment is not received immediately. Please call to pay by phone or visit home.cards.citidirect.com to make an online payment. 22

23 Citi Collection Efforts Statement Messages (continued) # Days Past Billing Charge Off Statement Message Your past due account has been canceled and submitted for Salary Offset. You are still responsible for ensuring your balance is paid in full. Please call to pay by phone or visit home.cards.citidirect.com to make an online payment. The past due balance on your canceled account has not been paid in full. Please be aware you are still responsible for ensuring your past due balance is paid in full, even if your account may have been submitted for Salary Offset. Please call to pay by phone or visit home.cards.citidirect.com to make an online payment. The past due balance on your canceled account has not been paid in full and may now be reported to the credit bureaus. Please call to pay by phone or visit home.cards.citidirect.com to make an online payment. 23

24 Citi Collection Efforts Reduced Payment Program Varying RPP programs have been created to assist Cardholders with their individual financial situations RPP Programs (2) Month (3) Month (6) Month (9) Month Commitment from Cardholder is that they can resolve delinquency (past due amount within two statement cycles); monthly late fees will be assessed while on this program; only available prior to cancellation; account could remain open for use Commitment from Cardholder is that they can resolve delinquency (past due amount within three statement cycles); a one-time enrollment fee of $45 is assessed; a monthly $10 RPP fee and monthly late fees ($29) are assessed while on this program; account may cancel while on this program determinate upon delinquency stage at enrollment Commitment from Cardholder is that they can resolve delinquency (past due amount within six statement cycles); a one-time enrollment fee of $45 is assessed; a monthly $10 RPP fee and monthly late fees ($29) are assessed while on this program; account may cancel while on this program determinate upon delinquency stage at enrollment Commitment from Cardholder is that they can resolve delinquency (past due amount within nine statement cycles); a one-time enrollment fee of $45 is assessed; a monthly $10 RPP fee and monthly late fees ($29) are assessed while on this program; account may cancel while on this program determinate upon delinquency stage at enrollment 24

25 Citi Collection Efforts Salary Offset There are three potential Salary Offset responses from DFAS that would determine eligibility of a member. They are as follows: DFAS Salary Offset Outcomes Enrolled Future Eligible Not Eligible Account has been reviewed and approved by DFAS for enrollment into Salary Offset. Enrollment fee of $80 and up to (3) Late Fees ($29 each) are assessed (Total of $167 in fees offset by DFAS). Account has been reviewed, but currently cannot be enrolled into Salary Offset. The account may be eligible for enrollment in the future. Account has been reviewed by DFAS and was declined. DFAS requirements for enrollment into Salary Offset were not met. This decision prevents the same account from being resubmitted for review in the future. Non-enrollment fee of $85 is assessed upon return to Citi.

26 5. Best Practices/AOPC Controls 26

27 Best Practices/AOPC Controls Utilize Cardholder Statements & Payments Option 27 Easier access while traveling Cardholders can access CS&P through selfregistration Payments made online are free and post faster than mailing Can view current and prior statements Can view unbilled transactions to get a jump on filing vouchers Travel Policy and Compliance Maintain a consistent card use policy educate cardholders frequently Create, communicate and exercise penalties for misuse and/or abuse of the card Educate cardholders to file travel vouchers as soon possible

28 Best Practices/AOPC Controls (continued) Maximize Card Control Immediately update separated cardholders Ensure updated contact information on cardholders within hierarchy Audit for unnecessary MCC s regularly utilize the Block MCC Report Minimize credit limits (cash and purchase) as appropriate Utilize Citi Online Reporting Tools Monitor spending and payment history for accounts Frequently monitor suspension/cancellation reports Empower AOPC s at all levels to take action against delinquent cardholders 28

29 6. Delinquency Management Reports/Tools 29

30 Reports/Tools Citibank Custom Reporting System (CCRS) Delinquency Report Pre-Suspension Report Salary Offset Report Non-travel-Related Activity Report Account Activity Report Declined Authorizations Report Blocked MCC Report CCRS provides access to detailed and easy-to-use reports to assist you with managing delinquencies within your hierarchy 30

31 How to Get to CCRS DOD Standard Reports Once in CitiManager click on Web Tools then click Citibank Custom Reporting System hierarchy link and select the appropriate hierarchy link. This will prompt a new window to open. 31

32 How to Get to the Delinquency Reports Step by Step Once the new CCRS window opens up click on Organizational Shared Folders 32

33 How to Get to the Delinquency Reports Step by Step Click on the folder Department of Defense Travel Shared Reports 33

34 How to Get to the Delinquency Reports Step by Step Once the window refreshes you will see all of the staple reports prepared for Department of Defense 34

35 Reports/Tools Delinquency Report The Delinquency Report provides account information at a specified hierarchy for any account holder considered past due on their card. Account Name Account Status Last Pmt Date Current Bal. Pmt. Amt. CTD 60 Day Past Due SSN Qualifier Pmt Due Date Past Due Amt 30 Day Past Due 35

36 Reports/Tools Pre-Suspension Report The Pre-Suspension Report lists accounts that are between days past billing from the billing cycle date within a specified hierarchy. Hierarchy Level 5 & 7 Account Name Account Status Pmt. Due Date Metrics SSN Days Past Due Last Statement Balance Past Due Amt 36

37 Reports/Tools Salary Offset Report The Salary Offset Detail Report lists accounts that have been enrolled in this program within a specified hierarchy and the cardholder s current balance. The Salary Offset Summary lists total amount of cards and current total balance of cards within the hierarchy choice. 37

38 Reports/Tools Suspension Detail Report The Suspension Detail Report lists accounts that have been suspended and are eligible for cancellation. Accounts appear on this report at days past the billing cycle date. Account Number Account Name Account Status Pmt. Past Due Last Statement Bal. Past Due Amt. SSN Date Suspended Number of Times Suspended Past Year Metrics 38

39 Reports/Tools Non-Travel-Related Activity Report The Non-Travel-Related Activity Report provides information to identify accountholders with transaction activity (such as cash, fuel, or food) occurring without other associated travel activity (such as airline, car rental or lodging). Account Number Account Name Transaction Date Merchant Name Merch. State Total Trans Amount Current Balance MCC Merch. City Metrics 39

40 Reports/Tools Account Activity Report The Account Activity Report provides detailed information regarding transactions for each account within a specified hierarchy level. Account Name 1 Account Name 2 Transaction Date Merchant Name Merch. City Account Type Account Type Trans Post Date MCC Merch. State 40

41 Reports/Tools Declined Authorization Report The Declined Authorizations Report lists all attempted transactions and detailed reasons for decline and type of purchase within a specified hierarchy. Account Name 1 Decline Date Primary Dec. Reason Decline Reason 2 Account Number Decline Time Decline Reason 1 Merch. City 41

42 Reports/Tools Blocked MCC Report The Blocked MCC Report shows all attempted transactions against excluded or restricted Merchant Category Codes (MCC). Transaction Date Transaction DB- CR Indicator MCC Transaction Post Date Merchant Name MCC Description 42

43 7. Current Card Results 43

44 Current DoD Delinquency Results Individually Billed Accounts Delinquency is defined as accounts > 31 days past due or 61 days past billing Delinquency as a % of Total Spend $ = 2.40% Delinquent $ ($ Delinquent as of June 2011) Spend $ (Oct 10 June 11) $82.7M $ 3.44B 44

45 Current DoD Delinquency Results Centrally Billed Accounts Delinquency is defined as accounts > 31 days past due or 61 days past billing Delinquency as a % of Total Spend $ = 1.68% Delinquent $ ($ Delinquent as of June 2011) Spend $ (Oct 10 June 11) $17.6M $ 1.043B 45

46 Current Component RPP/Salary Offset Results Reduced Payment Program Salary Offset # of Accounts $ # of Accounts $ Air Force 86 $113,577 Air Force 912 $1,200,677 Army 221 $253,166 Army 3,013 $3,477,388 Navy 86 $119,144 Navy 777 $883,060 Marines 12 $14,934 Marines 80 $135,315 Independents 17 $54,467 Independents 46 $140,820 TOTALS 422 $555,288 TOTALS 4,828 $5,837,260 *Data thru: 07/29/11 46

47 Credit Losses by Component Fiscal YTD 2011 Losses Fiscal Year to Date 2011 # of Accounts ($) Air Force 304 $442,141 Army 610 $894,174 Navy 360 $506,754 Marines 48 $77,366 Independents 20 $24,723 TOTALS 1,342 $1,945,158 Data from: Oct 2010 July 2011

48 8. Summary 48

49 Summary Remember Delinquency management is everyone s responsibility Implementing best practices is key to a successful program Improved delinquency management results in higher rebates and improved program integrity Citi is dedicated to making this process work for you! 49

50 Summary Contact Information Department Agency/ AOPC Service DoD Collections Cardholder Customer Service Contact Numbers Toll-Free (866) (757) Collect (866) (757) (800) (757) Hours of Operation Monday Saturday 7:00 AM to 9:00 PM EST Monday Friday 8:00 AM 9:00 PM EST 24 hours a day; 7 days a week dodtravelcard@citi.com 50

51 Reminders Thank you for attending! Visit the Citibank Welcome Center Level 3 Foyer West National Industries for the Blind will have a display of products Conference Slide Show come see yourself shine! Visit the Citibank One-on-One Lab Lido 3101 A/B Visit the Citibank Mini Sessions Lido 3001 A/B Citi Q&A Link Tell us your thoughts 51

52 Course Title Schedules Available at the Welcome Center 52

53 Interactive Training Events DoD Citi offers on-site training at no cost for agencies meeting the required minimum participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract. Regional Citi Training Locations Norfolk, VA Washington, DC Visit to view and register for these sessions Upcoming Training Visit to view and register for these sessions On-site at your base or installation 20-participant minimum Visit and under Resources to download the On-site Training Request Form Distance Learning Video Conferences Please us at and a Citi training coordinator will work with you directly for on-site or Distance Learning sessions. 53

54 Deanne Burbee 54

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