U.S. General Services Administration - Banking with … can call (800) 473-1393 to pay by phone...

U.S. General Services Administration

Delinquency Management

Sabrina Dyer

Vice President

Citi

July 2012

2012 GSA SmartPay Conference

“Fine Tune Your Payments Program with GSA SmartPay”

This material is intended for use by the GSA only

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House Rules

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(agency name)

To ensure the best possible learning experience for participants, please adhere

to the following house rules:

• Turn electronic devices to vibrate

• No video-taping or audio recording is allowed

• Hold questions to end of session

• Ensure your participant badge is scanned to receive CLP credits

− For each course

• Take advantage of opportunities to provide feedback

− Please select the “Citi Q&A” icon on any Citi PC at the conference

− Answers to be e-mailed after the conference within 60 days

Federal Agencies

®

Schedules Available at the Welcome Center Federal Agencies

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Visit the Citibank Welcome Center–Governor’s Ballroom Lobby area

Visit the Citibank One-on-One Lab–Governor’s Chambers D&E

Citi Q&A Link–Tell us your thoughts

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Reminders Federal Agencies

®

Interactive Training Events–GSA Federal Agencies

Citi offers Computer-Based Training (CBT) via the Citi Commercial Card Learning

and System Support (CLASS) in CitiManager.

Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS

link

Please contact your Account or Client Manager if you are interested in setting up a

training session. Training can be conducted at a Citi Training Location, on-site at

your office or via the web.

Regional Citi Training Locations

– Norfolk, VA

– Washington, DC


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This course is designed to assist you in

achieving the following objectives:

• 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

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Department of

DefenseFederal Agencies

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1. Delinquency Overview

2. Delinquency Timeline/Critical Dates

3. Common Causes of Delinquency/Myths

4. Citi Collection Efforts

5. Delinquency Management Reports/Tools

6. Best Practices/AOPC Controls

7. Current Component Results

8. Summary

9. Q&A/Contact Info

Agenda

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Federal Agencies

1. Delinquency Overview


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Delinquency Overview


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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Federal Agencies

Delinquency Overview

Delinquency Management (continued)

Payment Type Method to Submit Payment

ChecksCitibank Gov’t Card Services

P.O. Box 183173, Columbus, OH 43218-3173

Wire Payments post in 24 - 48 business hours

Payment by

Phone

Cardholder can call (800) 473-1393 to pay by phone through their

personal checking account

Cardholder

Statements &

Payments (CSP)

Cardholder can make an online payment using their personal

DDA account–free of charge at home.cards.citidirect.com

®

Federal Agencies

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2. Delinquency Timeline Overview

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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 (two statement cycles w/o a full payment or 36 days past due); account will automatically unsuspend with payment of full past due amount

– Account is canceled (permanently closed) at 131 days past billing; cardholder has received (5) letters, (5) statements, and numerous calls from a Citi Collections Specialist to attempt a reasonable payment arrangement

– Account will report to cardholder’s personal credit bureau at 151 days past billing

Federal Agencies

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Delinquency Management (continued)

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“Critical Timelines/Events” (continued)

– Accounts are canceled when (2) NSF checks are received within a 12-month period

– Reinstatement is not guaranteed, only for extenuating circumstances

AOPC must submit a written request to their Client Service Officer

Letter from cardholder explaining circumstances of cancellation

Citibank collections management reviews the information and determines eligibility

Account can only be reinstated (1) time in history of the account

Federal Agencies


Delinquency Management–Activity Matrix

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Days Past

Billing

Activity

System-Generated Letter Events

0 Original Cycle Date

25 Original Payment Due Date

30 2nd Cycle

45 Past Due Letter

55 Pre-Suspend Letter

66 Suspend Letter Account Suspends

121 Pre-Cancellation Letter

126Late Fees begin/continue every 30

days until charge-off

131 Cancellation Letter Account Cancels/Closes

151 Reports to Personal Credit Bureau

211Account Charges Off/Continues to

Reports to Personal Credit Bureau

Federal Agencies

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3. Common Causes of Delinquency/Myths

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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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Federal Agencies

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Causes vs. Myths (continued)

Bankruptcy

– Belief that card will not be affected

– 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

Federal Agencies

4. Citi Collection Efforts

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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 (5) days of the date of the letter, charging

privileges will be suspended

Suspend letter (sent at 66 days past billing)

– Advises charging privileges have been suspended

due to non-payment. States account will

automatically be reinstated when payment for past

due amount has been received

Federal Agencies

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Collection Letters (continued)

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Pre-cancel letter (sent at 120 days past

billing)

– Advises account is currently suspended and if

payment is not received immediately the account will

be subjected to cancellation, late fees and possible

negative reporting to personal credit bureau

Cancellation letter (sent at 131 days past

billing)

– Advises the account has been canceled and will be

reported to personal credit bureau and do not

attempt to use card

Federal Agencies

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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

Federal Agencies

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Collection Calls (continued)

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The Collection Specialist will attempt to

resolve the delinquency by discussing

available payment options, including

post-dating over the phone payments

Once account charges off, it may be

referred to a third 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

Federal Agencies


Citi Collection Efforts–Salary Offset

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• Accounts are targeted at 91 days past billing for agencies participating

• Letters are sent to the cardholder offering a payment option to avoid Salary Offset

• Late fees are stopped for accounts participating in Salary Offset but account continues to age

– Accounts participating in Salary Offset are not sent to outside collection agencies

Federal Agencies

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5. Best Practices/AOPC Controls

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Managing Delinquency

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Utilize Cardholder Statements & Payments

Option

– Easier access while traveling

– Payments made via online post faster than mailing and

are free

– Can view current statement

– Can view statement history (prior statements)

– Can view unbilled transactions to get head start 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 as

possible

Federal Agencies

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Managing Delinquency

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Maximize Card Control

– Audit for unnecessary MCCs regularly–utilize the Block

MCC Report

– Minimize credit limits (cash and purchase) as

appropriate

– Close accounts when no longer employed

Utilize Citi Online Reporting Tools

– Monitor spending and payment history for accounts

– Empower AOPCs to take action against delinquent

cardholders

Federal Agencies

6. Delinquency Management Reports/Tools

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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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Federal Agencies

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Delinquency Report

The Delinquency Report provides account information at a specified hierarchy for

any account holder considered past due on their card.


®

Account

Name

Account

Status

SSN

Last Pmt.

Date

Qualifier

Current

Bal.

Pmt. Due

Date Past Due

Amt.

Pmt. Amt.

CTD

30 Days

Past Due

60 Days

Past Due

Federal Agencies

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Pre-Suspension Report

The Pre-Suspension Report lists accounts that are between 45 and 60 days past

billing cycle within a specified hierarchy.


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Hierarchy

Level s 6 & 7Account

Status

SSN

Account

Name

Pmt. Due

Date

Past Due

Amt.

Days Past

Due

Metrics

Last

Statement

Balance

Federal Agencies

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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.


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Account

Number

Account

Status

SSN

Account

Name

Days Past

Due

Date

Suspended

Last

Statement

Bal.

Number of Times

Suspended Past

Year Metrics

Past Due

Amt.

Federal Agencies

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Non-Travel-Related Activity Report

The Non-Travel-Related Activity Report provides information to identify account

holders with transaction activity (such as cash, fuel or food) occurring without other

associated travel activity (such as airline, car rental or lodging).


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Account

Name

Account

Number

Current

Balance

Transaction

Date

Merch.

City

Merchant Name

Merch.

State

MCC Metrics

Total Trans.

Amount

Federal Agencies

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Account Activity Report

The Account Activity Report provides detailed information regarding transactions for

each account within a specified hierarchy level.


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Account

Name 1 Account

Name 2

Account

Type

Account

Type

Transaction

Date

Trans.

Post Date

Merchant

Name

Merch.

City

MCC

Merch.

State

Federal Agencies

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Declined Authorization Report

The Declined Authorizations Report lists all attempted transactions and details

reasons for decline and type of purchase within a specified hierarchy.


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Account

Name 1

Decline

Date

Decline

Time

Primary Dec.

Reason

Decline

Reason 1

Decline

Reason 2

Merch.

City

Account

Number

Federal Agencies

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Blocked MCC Report


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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).

Federal Agencies

7. Current GSA Results

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Current Component Salary Offset Results

Data as of 07/13/12

Salary Offset

# $

Labor 3 $5,442

SSA 1 $1,583

State 1 $202

IRS 5 $12,911

HUD 1 $2035

Total 11 $22,173


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Federal Agencies

8. Summary

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• 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…

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Federal Agencies


Contact Information

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DepartmentContact Numbers

Hours of OperationToll-Free Collect

Client

Account

Service

(866) 836-5011 (904) 954-7580Monday–Friday

7:00 am to 9:00 pm EST

Collections (800) 473-1393 (904) 954-7580Monday–Friday

8:00 am to 9:00 pm EST

Cardholder

Customer

Service

(800) 790-7206 (904) 954-758024 hours a day;

7 days a week

Federal Agencies

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Sabrina Dyer

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Department o

DefenseFederal Agencies

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Survey

®

Department o

DefenseFederal Agencies)

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Please take the course survey online by visiting:

www.gsasmartpayconference.org/survey

or by using the link sent to you via email from Feedback Systems.

Surveys can be taken through any mobile device.

http://www.gsasmartpayconference.org/survey

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