Delinquency Management - · PDF fileDelinquency Management. Causes vs. Myths (continued)...

2011 GSA SmartPay® Training Conference

Delinquency Management

Sabrina Dyer Vice President, Citi

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

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House Rules

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Federal Audiences

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 e-mailed after the conference within 60 days

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This course is designed to assist you in achieving the following objectives:

• To provide information for new and existing AOPCs on how to best manage and minimize delinquency in your Individually Billed Travel/Purchase Card Program

Goals & Objectives

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Delinquency ManagementDepartment of

DefenseFederal Audiences

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Agenda

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Federal Audiences

Delinquency Overview

Delinquency Timeline/Critical Dates

Common Causes of Delinquency/Myths

Citi Collection Efforts

Delinquency Management Reports/Tools

Best Practices/AOPC Controls

Current Component Results

Summary

Q&A/Contact Info

1. Delinquency Overview

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Cards are individual liability– Individual cardholders are responsible for the

timely payment of balance upon receipt of billing statement

GSA Contract requires use of Card for approved government expenditure– Cardholder is only reimbursed for “official”

government purchases; personal use of card IS NOT allowed

Cardholder payment options– Split disbursement

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Federal Audiences


Delinquency Management (continued)

Payment Type Method to Submit Payment

Checks Citibank Govt Card Services, P.O. Box 183173 Columbus, OH. 43218-3173

Wire Payments post in 24-48 business hours

Payment by Phone

Cardholder can call 1-800-473-1393 to pay-by-phone through their personal checking account

Cardholder Statements & Payments (CSP)

Cardholder can make an online payment using their personal DDA account – free of charge at home.cards.citidirect.com

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Federal Audiences

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2. Delinquency Timeline Overview

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Account Delinquency– 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”– Account is suspended from use at 66 days past

billing (2 statement cycles w/o a full payment or 36 days past due); account will automatically unsuspend with payment of full past due amount

– Account is canceled (permanently closed) at 131 days past billing; cardholder has received (5) letters, (5) statements, and numerous calls from a Citi Collections Specialist to attempt a reasonable payment arrangement

– Account will report to cardholder’s personal credit bureau at 151 days past billing

Federal Audiences

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Delinquency Management (continued)

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“Critical Timelines/Events” (continued)– Accounts are canceled when (2) NSF checks are

received within a 12-month period

– Reinstatement is not guaranteed, only for extenuating circumstances AOPC must submit a written request to their Client

Service Officer Letter from cardholder explaining circumstances of

cancellation Citibank collections management reviews the

information and determines eligibility Account can only be reinstated (1) time in history of

the account

Federal Audiences


Delinquency Management – Activity Matrix

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Days Past Billing

ActivitySystem Generated Letter Events

0 Original Cycle Date

25 Original Payment Due Date

30 2nd Cycle

45 Past Due Letter

55 Pre-Suspend Letter

66 Suspend Letter Account Suspends

121 Pre-Cancellation Letter

126 Late Fees begin/continue every 30 days until charge off

131 Cancellation Letter Account Cancels/Closes

151 Reports to Personal Credit Bureau

211 Account Charges Off/Continues to Reports to Personal Credit Bureau

Federal Audiences

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3. Common Causes of Delinquency / Myths

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Causes vs. Myths

Late or non-submission of expense reports– During travel/TDY

Slow/manual reimbursements by agency

Unclear on policy and/or procedures – Training is available on the GSA SmartPay website

NSF returned checks

Employee misuse– Spending reimbursement– Excessive personal card use– Overspending per diem

Improper handling of a dispute

Causes

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Federal Audiences

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Causes vs. Myths (continued)

Bankruptcy– Belief that card will not be affected– Belief that agency is unable to assist

Account management– Belief that account will not report to personal Credit Bureaus– Belief that they can use card for personal use – Card is not a Personal credit card it

can only be used for approved government expenses

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Myths

Federal Audiences

4. Citi Collection Efforts

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Collection Letters

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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 (5) days of the date of the letter, charging privileges will be suspended

Suspend letter (Sent at 66 days past billing)– Advises charges privileges have been suspended

due to non-payment. States account will automatically be reinstated when payment for past due amount has been received

Federal Audiences

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Collection Letters

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Pre-cancel letter (Sent at 120 days past billing)– Advises account is currently suspended and if

payment is not received immediately the account will be subjected to cancellation, late fees, and possible negative reporting to personal credit bureau.

Cancellation letter (Sent at 131 days past billing) – Advises the account has been canceled and will be

reported to personal credit bureau and do not attempt to use card.

Federal Audiences

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Collection Calls

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Cardholder is contacted by a 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

Federal Audiences

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Collection Calls

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The Collection Specialist will attempt to resolve the delinquency by discussing available payment options, including post dating over the phone payments.

Once account charges off, it may be referred to a third party collection agency and/or legal network to pursue more stringent collection efforts

Account reports to cardholder’s personal credit bureau at 151 days past billing cycle

Federal Audiences


Citi Collection Efforts – Salary Offset

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• Accounts are targeted at 91 days past billing for agencies participating

• Letters are sent to the cardholder offering a payment option to avoid Salary Offset

• Late fees are stopped for accounts participating in Salary Offset but account continues to age– Accounts participating in Salary

Offset are not sent to outside collection agencies

Federal Audiences

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5. Best Practices/AOPC Controls

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Managing Delinquency

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Utilize Cardholder Statements & Payments Option– Easier access while traveling– Payments made via online post faster than mailing and

is free – Can view current statement – Can view statement history (prior statements)– Can view unbilled transactions to get head start 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 program– Educate cardholders to file travel vouchers as soon as

possible

Federal Audiences

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Managing Delinquency

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Maximize Card Control– Audit for unnecessary MCC’s regularly – utilize the

Block MCC Report– Minimize credit limits (cash and purchase) as

appropriate– Close accounts when no longer employed

Utilize Citi Online Reporting Tools– Monitor spending and payment history for accounts– Empower AOPCs to take action against delinquent

cardholders

Federal Audiences

6. Delinquency Management Reports/Tools

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Citibank Custom Reporting System (CCRS)

Delinquency Report

Pre-Suspension Report

Non Travel Related Activity Report

Account Activity Report

Declined Authorizations Report

Block MCC Report

CCRS provides access to detailed and easy-to-use reports to assist you with managing delinquencies within your hierarchy

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Federal Audiences

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Delinquency Report

The Delinquency Report provides account information at a specified hierarchy for any account holder considered past due on their card.


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Account Name

Account Status

SSN

Last Pmt Date

Qualifier

Current Bal.

Pmt Due Date

Past Due Amt

Pmt. Amt. CTD

30 DayPast Due

60 Day Past Due

Federal Audiences

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Pre-Suspension Report

The Pre-Suspension Report lists accounts that are between 45 and 60 days past billing cycle within a specified hierarchy.


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HierarchyLevel 5 & 7

Account Status

SSN

Account Name

Pmt. Due Date

Past Due Amt

Days Past Due

Metrics

Last Statement Balance

Federal Audiences

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Suspension Detail Report

The Suspension Detail Report lists accounts that have been suspended and are eligible for cancellation. Accounts appear on this report at 61 – 125 days past the billing cycle date.


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Account Number

Account Status

SSN

Account Name

Days Past Due

Date Suspended

Last Statement

Bal.

Number of Times Suspended Past

YearMetrics

Past DueAmt.

Federal Audiences

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Non-Travel Related Activity Report

The Non-Travel-Related Activity Report provides information to identify account holders with transaction activity (such as cash, fuel, or food) occurring without other associated travel activity (such as airline, car rental or lodging).


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Account Number

Account Name

Current Balance

Transaction Date

Merch.City

Merchant Name Merch.State

MCC

Metrics

Total Trans Amount

Federal Audiences

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Account Activity Report

The Account Activity Report provides detailed information regarding transactions for each account within a specified hierarchy level.


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Account Name 1

Account Name 2

Account Type

Account Type

Transaction Date

TransPost Date

Merchant Name

Merch.City

MCC

Merch.State

Federal Audiences

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Declined Authorization Report

The Declined Authorizations Report lists all attempted transactions and details reasons for decline and type of purchase within a specified hierarchy.


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Account Name 1

DeclineDate

DeclineTime

Primary Dec. Reason

Decline Reason 1

DeclineReason 2

Merch. City

Account Number

Federal Audiences

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Blocked MCC Report


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Transaction Date

Transaction DB-CR Indicator

MCC

Merchant Name MCC

Description

Transaction Post Date

The Blocked MCC Report shows all attempted transactions against excluded or restricted Merchant Category Codes (MCC).

Federal Audiences

7. Current GSA Results

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Current GSA Delinquency Results

Delinquency Rates as of 7/29/11

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Delinquency management within the Agencies has been improving

Collections Unit observations indicate increased personal usage among cardholders

Delinquency as a % of Total Spend $ = 6%

Delinquent $ Spend $

$16,213,217 $264,705,720

Delinquency is defined as accounts >31 days past due or 61 days past billing

Federal Audiences

Current Component Salary Offset Results

Data as of 07/29/2011

Salary Offset

# $

Labor 3 $6,260.00

SSA 4 $9,322.00

State 4 $15,312.00

IRS 6 $21,307.00

HUD 1 $1,140.00

GSA 3 $3,340.00

Total 21 $56,681.00


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Federal Audiences

8. Summary

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• 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!

Remember…

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Federal Audiences


Contact Information

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DepartmentContact Numbers

Hours of OperationToll-Free Collect

Client Account Service

(866) 836-5011 (904) 954-7580 Monday – Friday7:00 AM to 9:00 PM EST

Collections (800) 473-1393 (904) 954-7580 Monday – Friday8:00 AM – 9:00 PM EST

Cardholder Customer Service

(800) 790-7206 (904) 954-7580 24 hours a day; 7 days a week

Federal Audiences

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Schedules Available at the Welcome Center Federal Audiences


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Sabrina Dyer

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Federal Audiences

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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

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Reminders Federal Audiences


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Interactive Training Events


Federal Audiences

Citi offers Computer Based Training (CBT) via the Citi Commercial Card Learning and System Support (CLASS) in CitiManager.

Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS link

Please contact your Account or Client Manager if you are interested in setting up a training session. Training can be conducted at a Citi Training Location, on-site at your office or via the Web.

Regional Citi Training Locations– Norfolk, VA– Washington, DC

Terms & Disclosures

Tuesday, July 28, 2009

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