Log a Recovery Payment
Updated 9 months ago
Introduction
A recovery payment is 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 explain how to log a recovery payment.
Logging 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 of which you want to log a recovery payment.
If you are starting from the Net Charge-Off tab, click 'Log Recovery Payment'. If you are starting from the Payments tab, click 'Log Payment' and then choose 'Log Recovery Payment' from the options.
When logging a recovery payment, you will complete the same three steps you see when logging regular payments: Payment Information, Method Information, and Preview & Confirm.
Payment Information
On the first screen, you will enter the information about the payment.
Option | Description |
Amount | The dollar amount of the payment |
Date | When the payment will apply. |
Payment Method | How the payment will be made (e.g. cash, check, card). The list of payment methods can be edited at Settings > Loan > Payments > Methods. |
Info | You can edit this text field to hold any information you want to record for the payment. |
Authorization Type | If you selected Bank Account as your payment method, this field will let you choose how to authorize that payment. Expand Authorization Types• CCD – Company Signature • PPD – Individual Signature • TEL – Telephone • WEB – Web |
Payment Profile Information
The Payment Profile Information section lets you choose a payment profile and processor to use to process your payment. Remember, your Secure Payments account must be properly configured to process a payment that uses a bank card or bank account. If you don’t have credentials entered for any payment integrations in your company account, you will receive a warning on this page explaining that you need to enter those credentials to enter payment data here.
If everything is in order with your 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 'Add New Payment Profile' 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 that you want to use for this payment. Payment processors can be added or edited in Secure Payments or the Secure Payments section of the LoanPro Company Settings. The convenience fee options and amounts will default to the settings in Loan Settings > Settings within the loan.
Options for a convenience fee will show at the bottom of the screen. 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.
Preview and Confirm
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 'Process Payment' 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.
Recovery AutoPays
When you create an AutoPay, you can choose to have the payments in the AutoPay be logged as recovery payments. Typically, AutoPays are used to set up regular, recurring payments, so using them as recovery payments is admittedly a little odd. In most cases, you'd want to log AutoPays as regular payments, but you might want to set up a single AutoPay as a recovery to try to recover some payment from a delinquent account.
When scheduling an AutoPay, you can make this choice by expanding the 'Advanced Options' and using the 'Recovery Payment' toggle switch.
