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Delinquency Management for your Civilian Travel / Purchase Card Program
Deanne BurbeeVice President, Citi
GSA SmartPay Conference
®
To ensure the best possible learning experience for participants, please adhere to the following house rules:
• Turn cell phones and pagers to vibrate• Hold questions to end of session• Must be scanned to receive CLP credits
− For each course• Unanswered Questions
− Q-Cards & Ballot Boxes− Answer to be emailed after the
conference - within 45 days
House Rules
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Delinquency Management
Delinquency Management
This session is designed to assist you in achieving the following goals:
• To provide information for new and existing AOPCs on how to best manage and minimize delinquency in your Individually Billed Travel/Purchase Card Program.
Goals & Objectives
Agenda
Q&A/Contact Info9.Summary8.Current Component Results7.
Best Practices/AOPC Controls
6.
Delinquency Management reports/tools
5. Citi Collection Efforts4.
Common Causes of Delinquency/Myths
3.
Delinquency Timeline/Critical Dates
2. Delinquency Overview1.
1. Delinquency Overview
Delinquency Management
Cards are Individual Liability– Individual cardholders are responsible for the
timely payment of balance upon receipt of billing statement
GSA Contract requires use of Card for approved Government Expenditure– Cardholder is only reimbursed for “official”
Government purchases; personal use of card IS NOT allowed
Cardholder Payment Options– Split disbursement
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1. Delinquency Overview
– Additional payment information is available online at www.citimanager.com under Resources; APC Guides; Payment Options Guide
Delinquency Management (continued)
Cardholder can make an online payment using their personal DDA account – free of charge
Cardholder Statements & Payments (CSP)
Cardholder can call 1-800-473-1393 to Pay-by-Phone through their personal checking account ACH
if made by 1:00 PM EST, should post same business dayWire
Citibank Govt Card Services, P.O Box 6575, The Lakes, NV 88901-6575Checks
Method to Submit PaymentPayment Type
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2. Delinquency Timeline Overview
Delinquency Management
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Account Delinquency– GSA contract references the number of days past the
cycle date; “clock” starts ticking when the account cycles and a statement is generated with a balance owing
“Critical Timelines/Events”– Account is suspended from use at 66 days past
billing (2 statement cycles w/o a full payment or 31 days past due); account will automatically re-open with payment of full past due amount
– Account is cancelled (permanently closed) at 131 days past billing; cardholder has received (6) letters, (5) statements, and numerous calls from a Citi Collections Specialist to attempt a reasonable payment arrangement
– Account will report to cardholders personal credit bureau at 151 days past billing
2. Delinquency Timeline Overview
Delinquency Management (continued)
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“Critical Timelines/Events” (continued)– Accounts are cancelled when (2) NSF checks are
received within a twelve month period.
– Reinstatement: is not guaranteed, only for extenuating circumstances
A / OPC must submit a written request to their Client Account Services ManagerLetter from cardholder explaining circumstances of cancellationCitibank collections management reviews the information and determines eligibilityAccount can only be reinstated (1) time in history of the account
2. Delinquency Timeline Overview
Delinquency Management –Activity Matrix
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Account Charges Off / Continues to Reports to Personal Credit Bureau210
Reports to Personal Credit Bureau151
Account Cancels / ClosesCancellation Letter131
Reports to Personal Credit BureauPre-Cancellation Letter121
Due Process / RPP Letter 100 (balance >$500)91
Account SuspendsSuspend Letter66
Pre-Suspend Letter55
Past Due Letter45
2nd Cycle30
Original Payment Due Date25
Original Cycle Date0
EventsSystem Generated LetterActivityDays Past
Billing
3. Common Causes of Delinquency / Myths
Causes vs. Myths
Late or non-submission of expense reports– During travel/TDY
Slow / manual reimbursements by agency
Unclear on policy and/or procedures – Training is available on the GSA SmartPay website
NSF returned checks
Employee misuse– Spending reimbursement– Excessive personal card use– Overspending per diem
Improper handling of a dispute
Causes
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3. Common Causes of Delinquency / Myths
Causes vs. Myths (continued)
Bankruptcy– Belief that card will not be affected– Belief that collection efforts cease– Belief that agency is unable to assist
Account management– Belief that account will not report to personal Credit Bureaus– Belief that they can use card for personal use - Card is not a Personal credit card it
can only be used for approved government expenses
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Myths
4. Citi Collection Efforts
Collection Letters
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Past due letter (Sent at 45 days past billing)– Advises account is currently past due and to pay
immediately to avoid suspension of charging privileges
Pre-suspend letter (Sent at 55 days past billing)– Advises account is past due and if payment is not
sent within (6) days of the date of the letter, charging privileges will be suspended
Suspend letter (Sent at 66 days past billing)– Advises charges privileges have been suspended
due to non-payment. States they will automatically be reinstated when payment for past due amount has been received
4. Citi Collection Efforts
Collection Letters
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Pre-cancel letter (Sent at 120 days past billing)– Advises account is currently suspended and subject
to cancellation if payment not received within (6) days. References the potential for salary offset, and if there are any extenuating circumstances that prevent payment to contact your AOPC immediately
Cancellation letter (Sent at 131 days past billing) – Advises that account has been cancelled and will be
added to the “Cancellation Report” that will be viewed by their AOPC
4. Citi Collection Efforts
Collection Calls
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Cardholder is contacted by a Collection Specialist beginning at 61 days past billing. The goal at this stage is to resolve the delinquency
Calls will continue until payment and/or acceptable arrangements have been made; frequency of calls is determinate upon call response, account balance, and follow through on prior promise to pay arrangements
4. Citi Collection Efforts
Collection Calls
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The Collection Specialist will attempt to resolve the delinquency by discussing available payment options, including Reduced Payment Programs
Once account charges off; it may be referred to a 3rd party collection agency and/or legal network to pursue more stringent collection efforts
Account reports to cardholder’s personal credit bureau at 151 days past billing cycle
4. Citi Collection Efforts
Statement Messages
“Your account is seriously past due and may be canceled and submitted for Salary Offset is a payment is not received immediately. Please call 1-800-473-1393 to pay by phone or visit home.cards.citidirect.com to make an online payment.”
121 – 150
“Your account is seriously past due and may be canceled and submitted for Salary Offset if a payment is not received within 30 days. Please contact us at 1-800-473-1393 to discuss payment options.”
91 - 120
“Your account is past due and your charging privileges have recently been suspended. Please pay the past due balance immediately.”61 – 90
31 - 60
# Days Past Due
“We did not receive your payment last month. Please pay the total balance due at once. If you have remitted payment, please disregard this notice.”
Statement Message
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4. Citi Collection Efforts
Statement Messages (continued)
“The past due balance on your canceled account has not been paid in full. Please be aware you are still responsible for ensuring your past due balance is paid in full, even if your account may have been submitted for Salary Offset. Please call 1-800-473-1393 to pay by phone or visit home.cards.citidirect.com to make an online payment.”
181+
151 – 180
# Days Past Due
“Your past due account has been canceled and submitted for Salary Offset. You are still responsible for ensuring your balance is paid in full. Please call 1-800-473-1393 to pay by phone or visit home.cards.citidirect.com to make an online payment.”
Statement Message
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4. Citi Collection Efforts
Citi Collection Efforts – Salary Offset
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• Accounts are targeted at 131 days past billing for agencies participating
• Letters are sent to the cardholder requesting payment in full to prevent Salary Off-set
• Late fees are stopped for accounts participating in Salary Off-set but account continues to age
– Accounts participating in Off-set are not sent to outside collection agencies at charge off
5. Best Practices / AOPC Controls
Managing Delinquency
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Utilize Cardholder Statements & Payments Option– Easier access while traveling– Payments made via online post faster than mailing and
is free – Can view current statement – Can view statement history (prior statements)– Can view unbilled transactions to get a jump on filing
vouchers
Travel Policy and Compliance– Maintain a consistent card use policy – educate
cardholders frequently– Create, communicate and exercise penalties for misuse
and/or abuse of program– Educate cardholders to file travel vouchers as soon
possible
5. Best Practices / AOPC Controls
Managing Delinquency
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Maximize Card Control– Audit for unnecessary MCC’s regularly – utilize the
Block MCC Report– Minimize credit limits (cash and purchase) as
appropriate– Quickly update separated cardholders
Utilize Citi Online Reporting Tools– Monitor spending and payment history for accounts– Empower AOPC’s to take action against delinquent
cardholders
6. Delinquency Management Reports / Tools
Citibank® Custom Reporting System (CCRS)
Delinquency Report
Pre-Suspension Report
Non travel Related Activity Report
Account Activity Report
Declined Authorizations Report
Block MCC Report
CCRS provides access to detailed and easy-to-use reports to assist you with managing delinquencies within your hierarchy
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Delinquency Report
The Delinquency Report provides account information at a specified hierarchy for any accountholder considered past due on their card.
6. Delinquency Management Reports / Tools
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Account Name
Account Status
SSN
Last Pmt Date
Qualifier
Current Bal.
Pmt Due Date
Past Due Amt
Pmt. Amt. CTD
30 DayPast Due
60 Day Past Due
Pre-Suspension Report
The Pre-Suspension Report lists accounts that are between 45 – 60 days past billing cycle within a specified hierarchy.
6. Delinquency Management Reports / Tools
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HierarchyLevel 5 & 7
Account Status
SSN
Account Name
Pmt. Due Date
Past Due Amt
Days Past Due
Metrics
Last Statement Balance
Suspension Detail Report
The Suspension Detail Report lists accounts that have been suspended and are eligible for cancellation. Accounts appear on this report at 61 – 125 days past the billing cycle date.
6. Delinquency Management Reports / Tools
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Account Number
Account Status
SSN
Account Name
Pmt. Past Due
Date Suspended
Last Statement
Bal.
Number of Times Suspended Past
YearMetrics
Past DueAmt.
Non-Travel Related Activity Report
The Non-Travel Related Activity Report provides information to identity accountholders with transaction activity (such as cash, fuel, or food) occurring without other associated travel activity (such as airline, car rental, or lodging).
6. Delinquency Management Reports / Tools
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Account Number
Account Name
Current Balance
Transaction Date
Merch.City
Merchant Name Merch.State
MCC
Metrics
Total Trans Amount
Account Activity Report
The Account Activity Report provides detailed information regarding transactions for each account within a specified hierarchy level.
6. Delinquency Management Reports / Tools
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Account Name 1
Account Name 2
Account Type
Account Type
Transaction Date
TransPost Date
Merchant Name
Merch.City
MCC
Merch.State
Declined Authorization Report
The Declined Authorizations Report lists all attempted transactions and details reasons for decline and type of purchase within a specified hierarchy.
6. Delinquency Management Reports / Tools
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Account Name 1
DeclineDate
DeclineTime
Primary Dec. Reason
Decline Reason 1
DeclineReason 2
Merch. City
Account Number
Blocked MCC Report
6. Delinquency Management Reports / Tools
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Transaction Date
Transaction DB-CR Indicator
MCC
Merchant Name MCC
Description
Transaction Post Date
The Blocked MCC Report shows all attempted transactions against excluded or restricted Merchant Category Codes (MCC).
7. Current DoD Results
Current GSA Delinquency Results
Delinquency Rates as of 7/20/09
®
Delinquency management within the Agencies has been improving
Collections Unit observations indicate increased personal usage amongst card holders.
$ 387,465M$34,093M
Spend $(Dec ’08- June ’09)Delinquent $
Delinquency as a % of Total Spend $ = .88%
Delinquency is defined as accounts >31 days past due or 61 days past billing
Current Component RPP Results
$1,4052TOTALS
$4831TVA
$9221TSA
$#
Reduced Payment Program
7. Current Component Results
®
data as of 7/15/09
Current Component Salary Offset Results
data as of 7/15/09
$239,215120Total$43,33333USCG$7,0048TVA$47,98712CBP$21,5646FEMA$9,95812IRS$16,8925State$2,4804FAA$62,42619ICE$2,3054DOC$8,6315VA$10,6548SSA$5,9814Labor
$#Salary Offset
7. Current Component Results
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Delinquency Management
• Delinquency management if everyone’s responsibility
• Implementing best practices is key to a successful program
• Improved delinquency management results in higher rebates and improved program integrity
• Citi is dedicated to making this process work for you!
Remember…
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Delinquency Management
Contact Information
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24 hours a day; 7 days a week(904) 954-7580800-790-7206
Cardholder Customer Service
Monday – Friday8:00 am – 9:00 pm EST(904) 954-7580800-473-1393Collections
Monday – Saturday7:00 am to 9:00 pm EST(904) 954-7580866-836-5011
Client Account Service
CollectToll-FreeHours of Operation
Contact NumbersDepartment
Terms & Disclosures
Tuesday, July 28, 2009
®
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