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Delinquency Management for your Travel Card Program –
DoD Travel
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
®
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 Card Program.
Goals & Objectives
®
Agenda
Q&A/Contact Info9.Summary8.Current DoD 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 all Government Travel– Cardholder is only reimbursed for “official”
Government Travel; personal use of card IS NOT allowed
®
1. Delinquency Overview
Cardholder payment options– Split disbursement (mandatory for military)– Alternative payment options
– Additional payment information is available online at www.citimanager.com/dodhomeunder Resources; APC Guides; Payment Options Guide
Reimbursement questions/issues contact DFAS Travel Assistance Center at 1-888-HELP1GO
Delinquency Management (continued)
Cardholder can make an online payment using their personal DDA account – free of charge
Cardholder Statements & Payments (CSP)
Cardholder can call 1-866-670-6461 to Pay-by-Phone through their personal DDA account - free of chargeACH
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
®
2. Delinquency Timeline Overview
Delinquency Management
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– 61 Days Past Billing = Account suspension
Account re-opens after posting of full past due payment
– 75 Days Past Billing = Late Fees at Cycle$29.00
– 126 Days Past Billing = Account cancellation(permanently closed)
Cardholder has received (6) letters, (5) statements, and numerous calls from a Citi Collections Specialist to attempt a reasonable payment arrangement ®
2. Delinquency Timeline Overview
Delinquency Management – Critical Timelines / Events (continued)
Critical Timelines / Events (continued)– Reinstatement is not guaranteed, must meet
eligibility criteriaAOPC submits Reinstatement form. If…
Approved: $29 reinstatement fee applied to first statementDenied: Must wait 60 days to reapply (only a restricted card will be issued)
One reinstatement permitted in life of account
– 210 Days Past Billing (charge off) = Reported to Cardholder’s Personal Credit Bureau
Accounts Cancellation:2 NSF checks within 12-month period, or3 payments returned (non-NSF)
®
2. Delinquency Timeline Overview
Delinquency Management –Activity Matrix (example)
®Account Charges Off / Reports to
Personal Credit Bureau2117/5/09
Salary Offset Inbound File from DFAS1314/16/09
Salary Offset File to DFAS1274/14/09
Account Cancels / ClosesCancellation Letter1264/12/09
Pre-Cancellation Letter1214/6/09
Due Process / RPP Letter 100 (balance >$500)913/8/09
Account SuspendsSuspend Letter612/6/09
Pre-Suspend Letter551/31/09
Past Due Letter451/21/09
2nd Cycle301/6/09
Original Payment Due Date2512/31/08
Original Cycle Date012/6/08
EventsSystem Generated LetterActivityDays Past
BillingCycle Date
3. Common Causes of Delinquency / Myths
Causes vs. Myths
Late or non-submission of travel vouchers– During travel/TDY
Slow / manual reimbursements by agency
Unclear on policy and/or procedures – DoD 101 – Travel Card 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
®
3. Common Causes of Delinquency / Myths
Causes vs. Myths (continued)
Myths
®
Account management– Belief that they don’t have to pay until after the statement is received– Belief that vouchers do not have to be filed until a statement is received– Belief that the 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 is a
Government Travel Card
Military Discharged or Government Service Cardholders no longer employed– Belief that collection efforts cease– Belief that agency is unable to assist
4. Citi Collection Efforts
Collection Letters
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 61 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 (continued)
Pre-cancellation / Due Process Letter (Sent at 91 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 126 days past billing) – Advises that account has been cancelled
and will be added to the “Cancellation Report” that will be viewed by their AOPC and Commanding Officer/Supervisor. Also advises that their account will be sent for Salary Offset consideration
®
4. Citi Collection Efforts
Collection Calls
Cardholder is contacted by a DoD Collection Specialist beginning at 45 days past due. 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
The DoD Collection Specialist will attempt to resolve the delinquency by discussing available payment options, including Reduced Payment Programs
®
4. Citi Collection Efforts
Collection Calls (continued)
Once account charges off; it may be referred to a 3rd party collection agency and/or legal network to pursue more stringent collection efforts
Upon charge off (210 days past billing) the account reports as a R9 charge off on cardholders personal bureau
®
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 1-866-670-6461 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 1-866-670-6461 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 Billing
“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
®
4. Citi Collection Efforts
Statement Messages (continued)
“The past due balance on your canceled account has not been paid in full and may now be reported to the credit bureaus. Please call 1-866-670-6461 to pay by phone or visit home.cards.citidirect.com to make an online payment.”
Charge-Off
“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 1-866-670-6461 to pay by phone or visit home.cards.citidirect.com to make an online payment.”
181 - 210
151 – 180
# Days Past Billing
“Your past due account has been canceled and submitted for SalaryOffset. You are still responsible for ensuring your balance is paid in full. Please call 1-866-670-6461 to pay by phone or visit home.cards.citidirect.com to make an online payment.”
Statement Message
®
4. Citi Collection Efforts
There are 3 potential Salary Offset responses from DFAS that would determine eligibility of a member. They are as follows:
Citi Collection Efforts – Salary Offset
Account has been reviewed by DFAS and was declined. DFAS requirements for enrollment into Salary Offset were not met. This decision prevents the same account from being resubmitted for review in the future.
Not Eligible
Account has been reviewed, but currently cannot be enrolled into Salary Offset. The account may be eligible for enrollment in the future.
Future Eligible
Enrolled Account has been reviewed and approved by DFAS for enrollment into Salary Offset.
DFAS Salary Offset Responses
®
5. Best Practices
Managing Delinquency
Utilize Cardholder Statements & Payments Option– Easier access while traveling– Cardholders can access CS&P through self-
registration– 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
Managing Delinquency (continued)
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
Aging Analysis Report
Pre-Suspension Report
Non travel Related Activity Report
Account Activity Report
Declined Authorizations Report
Blocked MCC Report
CCRS provides access to detailed and easy-to-use reports to assist you with managing delinquencies within your hierarchy
®
WHAT?– Dollars delinquent percentage rate calculation changed for SP2
Used to be based on outstanding dollars
Now based on average of net charge volume over rolling 4 months
WHY?– Prior, dollars from accounts that charged and paid within the same cycle were not
counted
– Seasonality of DoD travel caused spikes in delinquency
– Per OMB Circular A-123 Appendix B
HOW?– New calculation averages net charge volume from prior 2-5 months
Factored Net Charge Volume
– Total Delinquent Dollars / Factored Net Charge Volume total = Percent Delinquent Dollars
6. Delinquency Management Reports / Tools
Program Metrics & Delinquency Aging Analysis Report
6. Delinquency Management Reports / ToolsProgram Metrics – Delinquency Aging Analysis Report – Delinquent Accounts Percentage
Delinquent Accounts total divided by Open Accounts total
All accounts with balances 60 – 209 days past billing
Total of open accounts
Includes active and deactiveaccounts
Accounts Delinquent Percentage
Delinquent AccountsOpen Accounts
6. Delinquency Management Reports / ToolsProgram Metrics – Delinquency Aging Analysis Report – Delinquent Dollars Percentage
Delinquent Dollars total divided by Factored Net Charge Volume total
All dollars 60 – 209 days past billing
Add Net Charge Volume totals from Feb, March, April, May
Divide by 4
Dollars Delinquent Percentage
Delinquent DollarsJuly 2009
Factored Net Charge VolumeJuly 2009
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
®
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
Aging Analysis
The Aging Analysis Report provides a summary of delinquencies for a specified hierarchy.
6. Delinquency Management Reports / Tools
®
HierarchyLevel 4 & 5
Days Past Due
Account Type
Factored Net Charge Vol.
Net Charge Volume
Total Current Balance
Total Outstanding
Balance
Pre-Suspension Report
The Pre-Suspension Report lists accounts that are between 45 – 60 days past billing from the billing cycle date within a specified hierarchy.
6. Delinquency Management Reports / Tools
®
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
®
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 identify 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
®
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
®
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 detailed reasons for decline and type of purchase within a specified hierarchy.
6. Delinquency Management Reports / Tools
®
Account Name 1
DeclineDate
DeclineTime
Primary Dec. Reason
Decline Reason 1
DeclineReason 2
Merch. City
Account Number
Blocked MCC Report
The Blocked MCC Report shows all attempted transactions against excluded or restricted Merchant Category Codes (MCC).
6. Delinquency Management Reports / Tools
®
Transaction Date
Transaction DB-CR Indicator
MCC
Merchant Name MCC
Description
Transaction Post Date
7. Current DoD Results
DoD Delinquency Results
®
$ 2.3B$75.6M
Spend $(Dec ’08- June ’09)
Delinquent $($ Delinquent as of 7/20/09)
Delinquency as a % of Total Spend $ = 3.3%
Delinquency is defined as accounts > 31 days past due or 61 days past billing
Current Component RPP/Salary Offset Results
*data as of 7/15/09
$767,522407TOTALS$34,74423TOTALS
$2,9172Independents$00Independents
$47,79928Marines$4,0732Marines
$127,23565Navy$5,0504Navy
$513,068276Army$19,61913Army
$76,50336Air Force$6,0024Air Force
$# of Accounts$# of Accounts
Salary OffsetReduced Payment Program
7. Current Component Results
®
Delinquency Management
• Delinquency management is 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…
®
Delinquency Management
Contact Information
Email: [email protected]
®
24 hours a day; 7 days a week(757) 852-9076800-200-7056
Cardholder Customer Service
Monday – Friday8:00 am – 9:00 pm EST(757) 853-5708866-670-6461DoD
Collections
Monday – Saturday7:00 am to 9:00 pm EST(757) 853-2467866-670-6462Agency /
AOPC Service
CollectToll-FreeHours of Operation
Contact NumbersDepartment
Terms & Disclosures
Tuesday, July 28, 2009
®
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