Collections System Tutorial

Collections System Set Up

Overview: This module will help the Credit Union monitor their past due loans by tracking all collection attempts (phone calls, notices, letters, etc.) as well as payments applied to the delinquent loans.

From the Master Menu, select 6 - Additional Modules Menu and select 5 - Collections System.

If the Collections System menu does not exist, you do not have the Collections Module.



Suggested Daily Procedures:

Be sure all the loan payments (Batch Payrolls, ACH's, Loan Transfers, OTC Payments, etc.) are processed before performing the Collections Start-Of-Day.

From the Collections Menu, select Collection Main. Any loan that has a task listed in the To Do Column needs to be addressed. See Collections Main in this documentation for more information.

Collection Initialization

Overview: The Collections Initialization program sets up all the initial collection parameters, data files and transaction codes. This program should only be performed once. If you have already initialized this module, please go to the next section. Consult a CompuSource Support Representative before running this program.

Note: Must be in Single User to run this program.

Follow these directions on running the Collections Initialization program.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System and B - Collections Initialization.
   
   
   
   Oops! - If you get the message below, you are not in Single User.
   
   
   
   You need to log everyone out and re-login to Single User and follow step 1 again.
   
   
2. Select the Options menu and click on Collections Initialization.
   
   
   
   
3. When the program is complete, click Exit in the top menu.

You have now initialized the Collections System.

Collection Transaction Codes

Overview: By running the Collections Initialization, the system created four new transaction codes. These transaction codes will provide you with a means of posting collection payments that include collection expenses. You will need to maintain the G/L account number's as the Initialization Program has no way to determine what G/L accounts you want to use.

Before you can maintain the new Transaction Codes, you will need to be sure to have a Collection Expense Account created (for example, G/L Account 282.00) in the G/L Chart of Accounts.

The four new Transaction Codes are:

• 51 - COLP - Collection Payment
• 53 - COLT - Collection Transfer
• 54 - CCGP - Collection Charge Off Payment
• 55 - CCGT - Collection Charge Off Transfer

1. From the Master Menu, select 5 - Utilities Menu, 9 - System Files Menu, and 2 - G/L Transaction Code File Maintenance.
   
   
   
   
2. Click the Browse button (...) for the Transaction Type Code.
   
   
   
   
3. Press the Tab key when the All Account Types combo box is highlighted on the Transaction Code Search section.
   
   
   
   
4. Scroll down the Transaction Code list until you find the Transaction Code you would like to edit. Press Enter to select the transaction code.
   
   
   
   
5. Enter the G/L Accounts that relate to the account types. To see a complete list, click the Browse button (...) next to each account type.
   
   
   
   If you click the Browse button, the Select General Ledger Account form will appear. Select the G/L Account you want and click OK.
   
   
   
   Follow this step for each G/L Account.
   
   
6. Click Save Changes to save modifications to the transaction code.
   
   
   
   Follow these steps for each transaction code to review. To assist you, here are screen shots of each transaction code to use as an example.

COLP - Collection Payment



COLT - Collection Transfer



CCGP - Collection Charge Off Payment



CCGT - Collection Charge Off Transfer



Note: This maintenance needs to be performed when there is no simultaneous posting taking place in the system. Also, depending on the structure of your General Ledger, your Credit Union may need multiple definitions for these transactions.

This setup is critical in assuring that the Member and General Ledger figures remain in balance, therefore it is recommended that you contact the Software Support Department for assistance in setting up these transaction codes.

Click Exit in the menu when you have completed the Transaction Codes for the Collections System.

The Transaction Codes are now set up. Let's continue with the Collections System Control File.

Collections Control File

Before you can start using the Collections System and to help you understand how the Collections System works, you need to setup the Collections Control File.

Follow these directions.

1. From the Master Menu, select 6 - Additional Modules Menu , 5 - Collections System, and 8 - Collections Control File.
   
   
   
   
2. Click on the Day/Dollar Range tab.
   
   Note: We suggest setting up the Day/Dollar Range table first and then using the information from the Day/Dollar Range table to fill in the fields under the Setup tab.
   
   
   
   
3. Set up the Day Ranges for Ranges 1 to 8 and Dollar Ranges for Ranges A to H.
   
   
   
   
   
   Day Ranges Table:
   The purpose of the Day Ranges Table ( 1 thru 8 ) is to establish different levels of delinquency. It is then required to assign specific tasks to loans depending on the number of days that the loan is delinquent.
   
   Example: Your goal is to send a member that is 21 to 25 days past due a delinquent notice.
   
   Looking at the Day Ranges Table (Prior page), please note Range 2 is set up for 21 to 25 days.
   
   Dollar Range Table:
   The logic of this table is similar to that of the Day Range's Table except it uses Dollar Amounts instead of days. This table should only be used if you feel that loans should be collected based on their outstanding balance. It can be used in conjunction with the Day Ranges Table or used instead of the Day Ranges Table. Most of the Credit Unions we are familiar with prefer to use the Day Ranges Table.
   
   
4. Click on the Setup tab and enter the ranges you want specific things to happen.
   
   Under the Setup Tab please note Send Notice is coded with a "2" which is set up as 21 to 25 days. Therefore, any loan that falls into the day range "2" ( 21 to 25 days ) will receive a delinquent notice. Also note any loan that falls into day range "1" ( 15 to 20 days ) should be called on the phone.
   
   
   
   
5. Select the Balance Type. You can either set this to Current Balance or Delinquent Balance.
   
   
   
   
6. Select the Transaction Display Option. You can either set this to Ascending Date Order or Descending Date Order.
   
   
   
   
7. Enter the Add Loans to Collections Day Range (Days).
   
   
   
   
8. To Include Charged Off Loans, click the check box.
   
   
9. To Add Notes to Member Side, click the check box. This will add the notes made in collections to the member note program.
   
   
10. Once you have entered all information needed, click Save Changes to save the control file. The program will automatically close on this command.
    
    

You have now completed the Control File. Continue to the next section to understand the daily routines associated with Collections.

Daily Routines

Collections Update

Note: This step was referred to Collections Start-Of-Day in some previous versions. In future versions of CompuShare, the program will be referred to as Collections Update.

You should run this program everyday prior to starting the collection process. This will ensure that the latest activity is included in the collections system. This program can be performed several times during the business day to reflect any payment the member's may have made.

The following tasks are performed in this program:

• Adds Loans to the Collection Files.
• Updates the Days Delinquent for All Collection Accounts.
• Updated the Transactions for All Collection Accounts.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 1 - Collections Start-of-Day.
   
   
   
   
2. Click on the Options menu and select Update Accounts.
   
   
   
   
3. Once the routine is complete, you can click Exit to leave the program.

You have updated the Collections System..

Collections Main

Overview: The Collections Main screen displays all of the loans that have been added to the Collections System based on the Day/Dollar ranges set up in the Collections Control File. This is the list that you would work from in collecting the delinquent loans. From this screen you can view Loan Information, Collection Information, Transaction History and Payment History for each loan that has been added to the collection system.

Follow these directions with the Collections Main program.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 2 - Collections Main.
   
   
   
   An * next to the Days Delinquent signifies the loan has been charged off.
   
   You can sort the display by Cn/Acct, Name, Officer, Payoff Amount, Delinquency, or To Do by clicking on the column title. An * will appear in the right of the column heading showing which sort order has been selected.
   
   The To Do column lists the next action item that is required in collecting this delinquent loan.
   
   
2. To view a loan, click on the loan you want to review and click Select Account. You can also Double Click on any loan to view the detail.
   
   

You can now view different sections of information. The following screen shots will show you each section.

Loan Information

Collection Information

Transaction History



This screen will show you the transaction history for the member. On this screen, you have the ability to add a note. Follow these directions to add a note.

1. Click on the Add Note button.
   
   
   
   
   
   
2. Enter a Follow Up Date.
   
   Choose a Follow Up Date that will provide the Member enough time to act on the Action Taken. For example, if the Member promises a payment in the office by 7/15/06, the follow up date should be 7/16/06. Also, allow for enough time for notices to be sent and mail payments to be received. Once the Follow Up Date is established, this item will not appear in collections again unless the loan is still delinquent when the Follow Up Date is reached.
   
   
3. Enter a Action Taken. To view a list of options, click the Browse button (...) and select the Action Taken from the list box on the screen by double clicking on it or pressing the Enter key.
   
   
   
   
4. Enter the Memo you would like to include on this note.
   
   
5. Click the Save Note button to save the note.
   
   
   
   The note will now appear in the Transaction History.

Payment History

This screen will display the loan status for each month for the past two years.



Listed below are definitions of each status code.

• View To-Do List
• Send to Agency
• Send to Repossession
• Sold to Repossession
• Change Follow-Up Date

View To-Do List

Select the View To-Do List in the menu to view what is listed for this account today.



Note: If there is nothing to do, the Nothing to Do Today will be stated in the list box.

Click OK to close the form.

Send to Agency

Select the Send to Agency from the Options menu. Enter the Date Sent to Agency and the Agency Code and click Save Changes.



Send to Repossession

Select Send to Repossession from the Options menu. Enter the Date Send to Repossession and the Agency Code. Click Save Changes to update the file.



Sold at Repossession

Select Sold at Repossession from the Options menu. Enter the Date Sold at Repossession, the Amount Sold at Repossession and the Repossession Fees. Click Save Changes to update the file.



Change Follow-Up Date

Select Change Follow-Up Date from the Options menu. Enter the new Follow Up Date and the Follow Up Description. Click Save Changes to update the file.



You have now completed the Collections Main program. Continue with the next section for information on the maintenance program.

Collections Master File Maintenance

Overview: This option provides a way to maintain fields on the Collections Master File Account. Follow these directions on updating master file.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 3 - Collections Master File.
   
   
   
   
2. Enter the member's Control and Account Number. You can search for this member using their Social Security Number or their last name if you do not know the Control/Account #.
   
   
   
   Note: You can search for the account by using the Next and Previous buttons.
   
   You can change any of the fields on the screen.
   
   
3. To update the Agency Code, click on the Browse button (...). The Select Agency form will appear. Select the Agency you want and click OK.
   
   
   
   
4. Click the Action Items tab.
   
   
   
   
5. Make any changes you need to make on this form.
   
   Note: On the Action Items screen, if an Action Item box is checked, you will have to remove the check before you can rerun any function that would insert a check in the box.
   
   
6. When you have finished making changes, click Save Changes.
   
   

You have now completed this section on Collections Maintenance. The next section will cover Reports and the Mail Merge program.

Master List & Reminder Reports

Collections Master List

Overview: This Option will print a list of all the loans on the Collections System.

Follow these steps for this report.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections Systems, and 4 - Collections Master File List.
   
   
   
   
2. Review and set the parameters as you would like to have the report show.
   
   
3. Select the Reports menu, and click on Print Collections Master File.
   
   
   
   
4. Click OK on the printing complete message box.
   
   
   
   
5. Click Exit to leave the program.

Collections Reminder and Follow-Up List

Overview: This option will print Reminder and Follow-Up list based on a date range.

Follow these steps for this report.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 5 - Collections Reminder List.
   
   
   
   
2. Review and set parameters for the report.
   
   Suggested Parameters:
   
   Sort Key: Control/Account Number
   
   
   
   Page Heading: Page Headings on Each Page
   
   
   
   Option Selected: You can select All Reminders and get a list of all reminders or highlight one of the options to get a list of just that option or select Follow Up Date.
   
   Note: Follow Up Date option only pertains when you select Print Collections Follow-Up Lists from the Reports menu.
   
   
   
   Follow-Up List Date Range: Key in beginning and ending date for Collections Follow-Up List Report you want to print.
   
   
   
   
3. To print the Collections Reminder List, select the Reports menu and click on Print Collections Reminder List.
   
   
   
   
4. Click OK on the prompt.
   
   
   
   
5. To print the Collections Follow-Up List, select the Reports menu and click Print Collections Follow-Up List.
   
   
   
   
6. Click OK at the prompt.
   
   
   
   
7. Click Exit to leave the program.

You have completed the reports for the Collections Module.

Using Microsoft Word & Letter Merge

Collections Letter Merge

Overview: The Collections Letter Merge program will create a merge file that can be read by Microsoft Word 2000 or Microsoft Word 2003. This will allow you to customize your collections letters for five (5) different letter action items (Send Letter, Co Maker Letter, Legal Letter, Final Letter, and Collection Letter) and print them from your Microsoft Word program.

Follow these directions on running the Letter Merge program.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 6 - Collections Letter Merge.
   
   
   
   
2. Review and set parameters for the report.
   
   Suggested Parameters
   
   Sort Key: Control/Account #
   
   
   
   Page Headings: Print Headings on Each Page
   
   
   
   Option Selected: All Control Groups
   
   
   
   Letter Option: Select one of the following
   
   
   1. Send Letter
   2. Co-Maker Letter
   3. Legal Letter
   4. Final Letter
   5. Collection Letter
   
   
   
   
   

   Merge File Name: C: or H:\CSDIR\3RDPARTY\MERGE\LETTER.RTF
   
   
   
   Follow Up Date: Enter the Follow Up Date MM/DD/YYYY.
   
   
   
   Note: You can only run one Letter Option at a time. You must do the Print Collections Letter Merge and print the letter from Microsoft Word before running another Letter Option.
   
   

3. Select the Reports menu and click on Print Collections Letter Merge.
   
   
   
   
4. Click OK on the prompt when printing has been completed.
   
   
   
   The system will print out a Collections Letter Merge Report that list all the members that are going to receive a letter based on the Letter Option you selected.
   
   Please review report before continuing to make sure you have letters to print. As a result of running Print Collections Letter Merge, the system places a Check Mark in corresponding Send Letter box. If you need to run the Print Collections Letter Merge again, you will first have to remove the check marks from the members Collection Master File.

Printing Letter from Microsoft 2000

Follow these steps to print the letter using Microsoft 2000.

1. From your desktop, double click on the Microsoft Word 2000 icon.
   
   
   
   
2. Click File and select Open.
   
   
   
   
3. Double click on the name of the letter.
   
   
   
   As a result of selecting the Merge Letter Document, the merge has already taken place.
   
   
4. Click the Merge Icon and you can now view the actual Collection Letter the member will receive.
   
   
   
   
5. Click on the VCR button to view the next or previous letters.
   
   
   
   
6. Click Merge to Print icon to print the collection letter.
   
   

Printing Letter From Microsoft 2003

Note: Make sure the Mail Merge Toolbar is visible before opening the Collection Letter. You will need it to Merge and Print the collection letters.

To add the Mail Merge Toolbar if it's missing, follow these three steps while in Microsoft Word.

1. Click View
2. Click Toolbars
3. Click Mail Merge

Follow these steps to print the letter using Microsoft 2003.

1. From your desktop, double click the Microsoft Word 2003 icon.
   
   
   
   
2. Click File and select Open.
   
   
   
   
3. Double click on the name of the file you want to open.
   
   
4. Click Yes when asked if you want to continue.
   
   
   
   
   
   
5. Click Merge to Print icon to print the collection letter.
   
   

You have now completed this section.

Review of Agency File & Utilities

Collections Agency File

Overview: This option allows you to setup, maintain, and print a list of the Collections Agency's the Credit Union is utilizing.

Follow these directions for the Agency File.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 7 - Collections Agency File.
   
   
   
   
2. Enter the Agency Number you would like to review and press Tab.
   
   To view a complete list of Agency Numbers, click the Browse button (...). The Select Agency form will appear. Select the Agency you want and click OK.
   
   
   
   
3. Enter the appropriate information in each field. When you are done, click Save Changes to maintain this agency.
   
   

Delete Agency

Follow these directions.

1. Enter the Agency Number you want to delete and press Tab.
   
   
2. Click the Delete Record button.
   
   
   
   
3. You will be asked to confirm the deletion. Click Yes on the prompt to continue.
   
   

Printing Report

Follow these directions.

1. Click Reports and select Print Collection Agency Definition List.
   
   
   
   
2. Click OK on the prompt when printing has completed.
   
   

Collections Utilities

Overview: These utilities are used in case of data problems. This program performs the following tasks:

1. Re-creates the Key Index for All Collection Accounts.
2. Creates the Key Index for All Collection Accounts.
3. Creates the Key Index for All Collection Transactions.

Note: You must be in Single User to run this program. If you are not, you will get the following error.



Consult a CompuSource Support Representative before running this program.

Follow these directions.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections System, and 9 - Collections Utilities.
   
   
   
   
2. Select which menu option you want to run.
   
   To Re-create the Key Index for All Collections Accounts, click the Options menu and select Rebuild Collection Key Files.
   
   
   
   To Create the Key Index for All Collection Accounts, click the Options menu and select Initialize Collection Main Index.
   
   
   
   To Create the Key Index for All Collection Transactions, click the Options menu and select Initialize Collection Transaction Index.
   
   
   
   Click OK on prompt when process is complete.
   
   
   
   
3. Click Exit to leave the program.

Collections Deletion

Overview: This option is used to delete a loan from the collections system.

Follow these directions.

1. From the Master Menu, select 6 - Additional Modules Menu, 5 - Collections Systems, and A - Collections Deletion.
   
   
   
   
2. Select the Loan you want to delete and click Select Record. You can also Double Click the selection.
   
   
   
   
3. The Delete Loan from Collections form will appear. Review the contents.
   
   
   
   
4. Click Delete Loan.
   
   
   
   
5. Click Yes on the prompt to confirm the deletion.
   
   

This section has been completed with the Agency File, Utilities and Deletion programs.

Collections Mail Merge: Using Microsoft Word 2000 & 2003

Before you can use Word, you need to run the Collections Letter Merge program. Follow the steps in Section 8 on running this program in CompuShare.

The system will print out a Collection Letter Merge report that list all the members that are going to receive a letter based on the Letter Option you selected. Please review report before continuing to make sure you have letters to print.

As a result of running Print Collections Letter Merge, the system places a (Check Mark) in corresponding send letter box. If you need to run the [Print Collection Letter Merge] again you will first have to remove the check marks from the members Collection Master File.

Mail Merge Letter Using Word 2000

Follow these steps.

1. From your desktop, double click on the Microsoft Word 2000 icon.
   
   
   
   
2. Click Tools menu and select Mail Merge.
   
   
   
   
3. Click Create under the Main Document heading.
   
   
   
   
4. Select Form Letters from the drop down menu.
   
   
   
   
5. On the prompt on whether to open a new document, select New Main Document.
   
   
   
   
6. Click the Get Data button and select Open Data Source option.
   
   
   
   
   
   With the Open Data Source browser, find and select the Letter.rtf file. You will find this file in the csdir/3rdParty/Merge folder on your server.
   
   
   
   
7. On the Header Records Delimiters screen, edit Field Delimiter and the Record Delimiter and select OK.
   
   
   
   
8. Click Edit Main Document
   
   
   
   This will add the Mail Merge toolbar to your document.
   
   

If you click on the Insert Merge Field on the Mail Merge toolbar, the following drop box will displayed:

An example of a Collections Letter with the merged fields appears below.

Note: The merged field names are displayed in bold type to help when your are typing in the letter.

Dear "First_Name",

It has come to my attention that your loan has come past due. The last time we received a payment was "Last_Pmt". If you have since made a payment please disregard this letter. You current balance is $"Curr_Bal" and your loan has been paid thru "Paid_Thru", leaving you delinquent. Your payments are $"Loan_Pmt" and you will need to make a payment of $"Delq_Prin" to become current.

The data is being merged as you insert Merged Fields. You can view the completed document by clicking on the View Merged Data icon.



Note: The bold fields above use "<< >>" in the letter. Due to HTML limitations, quotations are used in this tutorial.

The letter will appear as follows:

You can view all of the letters by navigating the VCR buttons in the tool bar for next record and previous record:



When you have completed the letter, follow these steps.

1. Click File and select Save As.
   
   
   
   
2. Save the letter in your My Documents Folder using a name that describes on of the 5 letters available.
   
   
3. Click File and select Exit to leave Microsoft Word.