Designing Your Collection Class Control Overrides
The following matrix will help you design your collection class overrides. When the matrix is complete, you're ready to set up the collection class control tables.
Notice that the matrix has two dimensions: one is dependent on collection condition algorithms; the other is dependent on the collection class controls designed in the previous section. Collection condition algorithms are confusing. Think of them as optional conditions that, if met, will subject the collection class control's debt to different collection criteria.
Each cell in the matrix contains the collection criteria that will be applied to the account's debt when the collection condition is met (i.e., the same type of criteria - dollars and days and collection process - are defined in each cell).
We label the first collection condition as the Default. The collection criteria associated with this column will be used to analyze an account's debt when none of the other conditions applies. We'll start by indicating the Default collection criteria (this was defined in the previous section).
Contract's Debt Class | Account's Collection Class | |
---|---|---|
Default | Credit Rating < Threshold | |
Residential Charitable Contribution | See default collection criteria defined in previous section. | |
Residential Regulated | See default collection criteria defined in previous section. | |
Residential Unregulated | See default collection criteria defined in previous section. | |
Commercial-Industrial Unregulated | See default collection criteria defined in previous section. | |
Residential Deposit | See default collection criteria defined in previous section. | |
Commercial-Industrial Deposit | See default collection criteria defined in previous section. |
If a different collection process OR criteria should be used when other conditions are met, you should indicate such by defining the collection criteria in the cell. For example, if we assume that all insurance debt has a different collection process when the account's credit score is less than the threshold credit rating on the installation record, our matrix will look as follows:
Contract's Debt Class | Account's Collection Class | |
---|---|---|
Default | Credit Rating < Threshold | |
Residential Charitable Contribution | See default collection criteria defined in previous section. | |
Residential Regulated | See default collection criteria defined in previous section. | |
Residential Unregulated | See default collection criteria defined in previous section. | Override: If Credit Rating is lower than the installation threshold: If > $5 is older than 15 days, start Risky Unregulated collection process. |
Commercial-Industrial Unregulated | See default collection criteria defined in previous section. | |
Residential Deposit | See default collection criteria defined in previous section. | |
Commercial-Industrial Deposit | See default collection criteria defined in previous section. |
Once the matrix is complete, you're ready to design your collection process and collection event types.