Setting Up Pay Plans

A pay plan (PP) is an agreement with a customer to make specific payments on specific dates (as opposed to payment arrangements where the customer makes fixed payments as part of their regular bills).

Consider the following situations that would require a pay plan:

• A customer makes a request to payoff severely overdue debt in one or more installments. The existence of the pay plan insulates the portion of the debt covered by the plan from C&C processing (specifically, from the account debt monitor).
• A commercial or industrial customer cannot or will not post a deposit. This type of pay plan is not specifically paying off past debt; rather, it can be viewed as an installment plan to prepay a regular service agreement.

The topics in the following section describe how to set up a pay plan.