The Pay Plan Monitor

Fastpath:

Please understand the concepts described in The Lifecycle Of A Pay Plan and The Tendering Account May Differ From The Account Whose Debt Is Relieved before reading this section.

The Pay Plan Monitor background process (referred to as PPM ) is responsible for monitoring active payment plans. This process can cause a pay plan (PP) to become kept or broken (or being left as active ).

Note:

When is a pay plan marked as broken / kept? It's important to understand that only the PPM can cause a pay plan to become kept or broken. This means that if a customer makes a payment that satisfies a pay plan, the pay plan will only be marked as kept when the pay plan monitor next runs. Analogously, if a payment is cancelled, nothing will happen to an active pay plan until the PPM next runs. When the PPM next runs, it will see that the scheduled payment was not kept and it will break the pay plan and schedule the ADM to be executed. When the ADM next executes, it will create a collection process (because the customer's debt will no longer be insulated by the pay plan's scheduled payments).

NSF Cancellations After A Pay Plan Is Kept. If a payment is cancelled due to non-sufficient funds (NSF) after a pay plan is marked as kept, the pay plan will remain kept. But keep in mind that the pay plan's account is scheduled for review by the ADM when a payment is cancelled due to NSF. When the ADM reviews the account's debt, it will no longer have an active pay plan to insulate it and the account's debt will likely trigger a new collection process. Refer to How Pay Plans Affect The Account Debt Monitor for more information.

The following points describe, at a high level, how the PPM monitors a pay plan (PP) for compliance.

  • The system selects all frozen, non-cancelled payment segments associated with the PP's account and debt class where:
    • The payment date is after the start date of the pay plan, and
    • The payment's pay event has at least one tender that references the pay plan's payor.
  • The system logically reduces / removes past and current scheduled payments (starting with the earliest scheduled payment) until the total amount of payment segments is exhausted (or there are no more historical / current scheduled payments).
Note:

Paying pay plans in advance. Scheduled payments with a future date are not logically removed / reduced. This means that if a customer makes advance payments on a pay plan, it will not be marked as kept until all scheduled payment dates are in the past.

  • If all scheduled payments have been logically removed, the pay plan is marked as kept.
  • If there exist scheduled payments where the pay date + grace days (grace days are defined on the pay plan's payment method) is before the current date (i.e., a payment doesn't exist for a scheduled payment):
    • The pay plan is marked as broken.
    • The PP's break algorithm (if any) is called (note, for European / Australian pay plans, there are scenarios where the break algorithm can cause the pay plan to become unbroken - when there aren't at least two missed, historical scheduled payments).
    • An ADM trigger is stored for the PP's account. This will cause the account to be reviewed by the ADM the next time it runs. And because the pay plan is broken, its scheduled payments will no longer insulate the account's arrearage.
Important:

It's important that you schedule the PPM to run before the ADM so that it can break unpaid payment plans prior to the ADM subjecting the account's debt to collection criteria. Refer to How Pay Plans Affect The ADM for more information.