Log a Recovery Payment
A recovery payment is specifically a payment you receive on a charged-off account. You should only charge off an account if it’s unlikely that some portion of what is owed on the account will ever be paid. If there is no charge-off balance on an account, it is not advisable to log a recovery payment on that account. This article will go over how to log a recovery payment.
There are two places you can go to log a recovery payment inside of a customer account. Navigate to either Servicing > Payments, OR Servicing > Net Charge-off inside the account on which you want to log a recovery payment.
If you are starting from the Net Charge-Off tab, click . If you are starting from the Payments tab, click and then choose Log Recovery Payment from the options.
Logging a recovery payment is done in three steps: Payment Information, Method Information, and Preview & Confirm. The Payment information section is the first step. Here you will enter the information about the payment. The options include:
- Amount – This is the payment amount.
- Method – This is the payment method you are using to make the payment (e.g. cash, check, card). The list of payment methods can be edited at Settings > Loan > Payments > Methods.
- Date – This is the date when the payment will apply.
- Info – Any information you may want to record for this payment.
The Payment Profile Information section lets you choose a payment profile and processor to use to process your payment. Your PCI-Wallet account must be properly configured If you don’t have credentials entered for any payment integrations in your company account, you will get warnings on this page telling you that you need to enter those credentials in order to enter payment data here.
If everything is in order with one or more payment integrations, you will see a list of payment methods associated with your customer. Either check the box for an existing payment method, or click to create a new payment profile for this customer.
Once you select a payment profile, options for payment processor will be shown. Choose the payment processor you want to use for this payment. Payment processors can be added or edited in PCI Wallet or the PCI Wallet section of the Company Settings. The convenience fee options and amounts will default to the settings in Loan Settings > Settings inside the loan.
Options for a convenience fee will show at the bottom if you scroll down. If you choose the Waive Service Fee radio button, no convenience will be logged on with this payment. You can also choose to enter a flat fee, enter a fee percentage (this is a percentage of the payment you are logging), or decide between the greater or lesser of a flat fee or a percentage.
The Preview & Confirm step in logging a recovery payment will give you the chance to look at what is being charged and how it will apply. When you are satisfied with the payment information entered, click to finish logging the payment.
If recovery payments are logged on an account, there will be a message on the payments tab to notify you of this.
When you create an AutoPay, you can choose to have the payments in the AutoPay be logged as recovery payments.
You can make this choice by expanding the Advanced Options and using the Recovery Payment toggle switch.