Monitoring Payment Arrangements

The PA contract should belong to its own debt class (let's call it Payment Arrangement Debt) so that you can have stricter collection criteria for payment arrangement debt (as compared to normal contract's). Because there will be a new debt class, there will be a unique collection class control (CCC) for payment arrangements. This CCC will have debt criteria associated with payment arrangement debt.

Note: The PA contract must final bill before it closes. It's important to note that the PA contract will only close after the PA contract is final billed. This is OK as it won't have any money left on it.

When the ADM next runs, it will analyze the account's reinstated debt. We recommend creating a new override collection criteria for the normal debt class that will return a value of true if the account has a closed payment arrangement that has been broken in the last X days (where X is a parameter of the override collection criteria's algorithm). If this algorithm returns a true, kick off a unique collection process template (that has nasty events). A sample algorithm of this type is supplied in the base package - COLL COND PA.

To complete this discussion, we have to worry about the situation when the final bill of a payment arrangement goes unpaid. In this situation, the payment arrangement is stopped and will therefore not be processed by the ADM. In this case, the write off monitor will process the PA contract after its final bill's due date and a write-off process will start. This write off process will have a single event that calls the Break Payment Arrangement algorithm (described above). After the FT's are issued in this event, the contract will close (because it's been final billed and it's balance will go to zero).