Collection Process Cancellation

When a promise to pay (PTP) is created, the system determines if it can cancel active collection process associated with the promise to pay's account and debt class. It does this because a promise to pay's scheduled payments act as "pseudo payments" that relieve the account's debt (temporarily). The following points describe how this works:

• The system attempts to cancel collection processes by calling the Collection Process Cancel Criteria Algorithm defined on the debt class that is associated with the collection process. This algorithm is meant to cancel a collection process if the sum of ALL contracts in the debt class have debt less than a given threshold amount. Because of the existence of the promise to pay, the actual debt will be temporarily reduced by the amount of the promise to pay's scheduled payments before it is compared to the threshold amount (see How Promise To Pay Affect The ADM for more information about how debt is reduced). Note: this temporary reduction will only occur if you have plugged in the appropriate promise to pay debt reduction algorithm on the debt class.

If collection processes still exist for the account / debt class associated with the promise to pay, a warning is issued.