Recovery payments
A recovery payment is a payment made on a charged-off account. 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 and change an AutoPay to be listed as a recovery payment.
Logging a recovery payment
There are two places you can go to log a recovery payment inside of a customer account: the payments tab or the net charge-off tab .
- Payments tab: Navigate to Servicing > Payments inside the account of which you want to log a recovery payment. Click ‘Log Payment’, then choose ‘Log Recovery Payment’ from the drop down.
- Net charge-off tab: Navigate to Servicing > Net Charge-off inside the account of which you want to log a recovery payment. Click ‘Log Recovery Payment’ in the upper right corner.
The process to log a recovery payment is identical after that first step. Once in the recovery payment window, you will complete the same three steps you see when logging regular payments: payment information, payment profile information, and preview and confirmation.
Payment information
On the first screen, you will enter the information about the payment.
| Option | Description |
| Amount | 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 | Edit this text field to hold any information you want to record for the payment. |
| Authorization type |
|
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 processors 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, a field to select a payment processor will appear at the bottom of the page. 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.
Options for a convenience fee will show at the bottom of the screen. The options and amounts will default to the settings in Loan Settings > Settings within the loan. 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
This last 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.
Action options for logged payments
After you log a recovery payment, the ‘History’ page in the net charge-off tab has a couple of action options for each transaction.
- Generate receipt: The Adobe PDF file icon will immediately generate a receipt for the recovery payment.
- Edit: The paper and pencil icon lets you edit the payment after it's processed. A window will pop up asking you to provide a reason for editing the recovery payment before processing the payment.
- Reverse payment: The reverse arrow icon lets you reverse the recovery payment once it's processed. Before you can reverse it, a window will pop up asking you to provide a reason and if you'd like to charge a reversal fee.
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, however, you can set up a single AutoPay 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 'Flag As Charge-Off' toggle switch.
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