delinquency management for your travel card program … · delinquency management for your travel...
TRANSCRIPT
Delinquency Management for
your Travel Card Program –
DoD Travel
Deanne Burbee
Senior Vice President, Citi
GSA SmartPay Conference
®
12th Annual GSA SmartPay Conference
Atlanta, GA
August 10 – 12, 2010
®
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
• Ensure your participant badge is scanned to receive CLP credits
− For each course
− Must leave room and re-enter
• Take advantage of opportunities to provide feedback
− Please select the “Ask Citi” icon on any Citi PC at the conference
− Answers to be emailed after the conference within 45 days
House Rules
Delinquency Management
DoD Travel
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
®
DoD Travel
Delinquency Management
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 DoD Results
8. Summary
9. Q&A/Contact Info
Goals & Objectives DoD Travel
1. Delinquency Overview
®
Delinquency Management
Delinquency Overview
Cards are Individual Liability
– The cardholder is solely responsible for the
timely payment of balance upon receipt of
billing statement
GSA Contract requires usage of the
Card for all Government Travel
– Cardholder is only reimbursed for “official”
Government Travel; personal use of card
IS NOT allowed
®
DoD Travel
Delinquency Management
Cardholder payment options
– Split disbursement (mandatory for military)
– Alternative payment options
– Additional payment information is available online at www.citimanager.com/dodhome
under Resources; APC Guides; Payment Options Guide
Reimbursement questions/issues contact DFAS Travel Assistance Center at
1-888-HELP1GO
Delinquency Overview (continued)
Payment Type Method to Submit Payment
ChecksCitibank Govt Card Services,
P.O Box 6575, The Lakes, NV 88901-6575
Wire If made before 1:00 PM EST, should post the same business day
ACHCardholder can call 1-866-670-6461 to Pay-by-Phone through
their personal DDA account - free of charge
Cardholder
Statements &
Payments (CSP)
Cardholder can make an online payment using their personal
checking (DDA) account – free of charge
®
DoD Travel
2. Delinquency Timeline Overview
®
Delinquency Management
Delinquency Timeline Overview
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®
DoD Travel
Delinquency Management
Delinquency Timeline Overview (continued)
– 127+ Days Past Billing – Account sent to DFAS for Salary Offset processing
– 211 Days Past Billing (charge off) = Reported to Cardholder’s Personal Credit Bureau; and may be referred to Collection Agency or Attorney for additional Collection efforts
Additional Account Cancellation Scenarios:
(2) NSF checks within (12) month period, or
(3) payments returned (non-NSF) within a (12) month period
Reinstatement : Reinstatement is not guaranteed, must meet eligibility criteria
– AOPC submits Reinstatement Application to (866) 951-8005. If application is…
– Approved: $29 reinstatement fee applied on first statement; Account will be re-opened as a restricted card ($4000 credit limit)
– Denied: Must wait 60 days to reapply
– One reinstatement permitted in life of account ®
DoD Travel
Delinquency Management
Delinquency Timeline Overview
®
Days Past
Billing
Activity
System Generated
LetterEvents
0 Original Cycle Date
25 Original Payment Due Date
30 2nd Cycle
45 Past Due Letter
55 Pre-Suspend Letter
61 Suspend Letter Account Suspends
91Due Process / RPP Letter
100 (balance >$500)
121 Pre-Cancellation Letter
126 Cancellation Letter Account Cancels / Closes
127+ Salary Offset File sent to DFAS
131 Salary Offset Inbound File from DFAS
211 Account Charges Off / Reports to Personal Credit Bureau
DoD Travel
Delinquency Management
Delinquency Fee Timeline
®
Days Past
Billing
Activity
Fee Type Fee Amount
0 Original Cycle Date
25 Original Payment Due Date
30 2nd Cycle
75 1st Late Fee $29
105 2nd Late Fee $29
127+ Salary Offset Fee $80
135 3rd Late Fee $29
165 4th Late Fee $29
195 5th Final Late Fee $29
DoD Travel
• Assuming the cardholder does not make a full past due payment, the total fees assessed on the
account prior to charge off total $225
• Without a full payment of the past due amount, fees will continue to be assessed each statement
cycle until the account charges off
• Payment of full past due amount prior to due date will prevent subsequent Late Fees
3. Common Causes of Delinquency / Myths
®
Delinquency Management
Common Causes of Delinquency - Causes vs. Myths
Late or non-submission of travel vouchers
– “Still on travel have not yet filed”
– Waiting on final levels of approval
– Change in Duty Station (PCS) or (TDY)
Slow / manual reimbursements by agency
– DTS “issues”
– DTS “kicking claim back without cardholder being notified”
– DTS/Cardholder errors with Split Disbursement option
Unclear on policy and/or procedures
– DoD 101 – Travel Card Training is available on the GSA-SmartPay website
Employee misuse
– Spending reimbursement vs. paying Travel Card
– Using card for personal use/Miscalculating Per Diem
NSF returned checks
Causes
®
DoD Travel
Delinquency Management
Cardholders believe that:
They don’t have to pay until after they are reimbursed
They don’t have to pay/file voucher until after they return from travel
They are not responsible for late fees or salary offset fees
The account will not report to personal Credit Bureaus
They can use Card for personal use - Card is not a Personal credit card it is a Government Travel Card
Separated Military Cardholders believe that:
Balance is no longer their responsibility; especially if balance includes fees
Once discharged from the DoD that collections efforts will cease
APC/prior Command is unable to assist Citi with Cardholder information
Common Causes of Delinquency – Causes vs. Myths (cont)
Myths
DoD Travel
4. Citi Collection Efforts
®
Delinquency Management
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 charging privileges have been
suspended due to non-payment. States they
will automatically be restored when payment
for past due amount has been received®
DoD Travel
Delinquency Management
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
®
DoD Travel
Delinquency Management
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
Citi Collection Efforts - Collection Calls DoD Travel
Delinquency Management
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 (211 days past billing)
the account reports as a R9 charge off
on cardholders personal bureau
Citi Collection Efforts - Collection Calls (continued) DoD Travel
Delinquency Management
Statement Messages: 31-60 “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.” 61-90 “Your account is past due and your
charging privileges have recently been suspended. Please pay the past due
balance immediately.”91-120 “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.”121-150 “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.”
Citi Collection Efforts - Statement Messages DoD Travel
# Days Past
BillingStatement Message
31 - 60
“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.”
61 – 90“Your account is past due and your charging privileges have recently been
suspended. Please pay the past due balance immediately.”
91 - 120
“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.”
121 - 150
“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.”
Delinquency Management
Statement Messages: 151-180 “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 1-866-670-6461
to pay by phone or visit home.cards.citidirect.com to make an online payment.”181-210 “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.” Charge-Off “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.”
Citi Collection Efforts - Statement Messages (continued) DoD Travel
# Days Past
BillingStatement Message
151 – 180
“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
1-866-670-6461 to pay by phone or visit home.cards.citidirect.com to
make an online payment.”
181 - 210
“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.”
Charge-Off
“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.”
Delinquency Management
Varying RPP programs have been created to assist Cardholders with their individual
financial situations
Citi Collection Efforts – Reduced Payment Program
RPP Programs
(2) MonthCommitment from Cardholder is that they can resolve delinquency (past due amount within
two statement cycles); monthly late fees will be assessed while on this program; only
available prior to cancellation; account could remain open for use
(3) Month
Commitment from Cardholder is that they can resolve delinquency (past due amount within
three statement cycles); A one time enrollment fee of $45 is assessed; A monthly $10 RPP
fee; and monthly late fees ($29) are assessed while on this program; account may cancel
while on this program determinate upon delinquency stage at enrollment
(6) Month
Commitment from Cardholder is that they can resolve delinquency (past due amount within
six statement cycles); A one time enrollment fee of $45 is assessed; A monthly $10 RPP
fee; and monthly late fees ($29) are assessed while on this program; account may cancel
while on this program determinate upon delinquency stage at enrollment
(9) Month
Commitment from Cardholder is that they can resolve delinquency (past due amount within
nine statement cycles); A one time enrollment fee of $45 is assessed; A monthly $10 RPP
fee; and monthly late fees ($29) are assessed while on this program; account may cancel
while on this program determinate upon delinquency stage at enrollment
®
DoD Travel
Delinquency Management
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
DFAS Salary Offset Outcomes
Enrolled
Account has been reviewed and approved by DFAS for enrollment into
Salary Offset. Enrollment fee of $80 and up to (3) Late Fees ($29 each)
are assessed (Total of $167 in fees offset by DFAS)
Future
Eligible
Account has been reviewed, but currently cannot be enrolled into Salary
Offset. The account may be eligible for enrollment in the future.
Not Eligible
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.
Non enrollment fee of $85 is assessed upon return to Citi
®
DoD Travel
5. Best Practices/AOPC Controls
®
Delinquency Management
Best Practices/AOPC Controls
Utilize Cardholder Statements &
Payments Option
– Easier access while traveling
– Cardholders can access CS&P through self-
registration
– Payments made online are free and post faster
than mailing
– Can view current and 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 the card
– Educate cardholders to file travel vouchers as
soon possible®
DoD Travel
Delinquency Management
Best Practices/AOPC Controls (continued)
Maximize Card Control
– Audit for unnecessary MCC’s regularly – utilize the
Block MCC Report
– Minimize credit limits (cash and purchase) as
appropriate
– Immediately update separated cardholders
– Ensure updated contact information on
cardholders within hierarchy
Utilize Citi Online Reporting Tools
– Monitor spending and payment history for
accounts
– Frequently monitor suspension/cancellation
reports
– Empower AOPC’s at all levels to take action
against delinquent cardholders
®
DoD Travel
6. Delinquency Management Reports/Tools
®
Delinquency Management
Reports/Tools -Citibank® Custom Reporting System (CCRS)
Delinquency Report
Pre-Suspension Report
Salary Offset 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
®
DoD Travel
Once in Citimanager click on applications then click Citibank Custom Reporting System hierarchy
link. This will prompt a new window to open.
Delinquency Management
®
DoD TravelHow to get to CCRS DOD Standard Reports
Once the new CCRS window opens up click on Organizational Shared Folders
Delinquency Management
®
DoD TravelHow to get to the Delinquency Reports – step by step
Delinquency Management
Click on the folder Department of Defense Travel Shared Reports
DoD Travel
Delinquency Management
Once the window refreshes you will see all of the staple reports prepared for Department of Defense
DoD Travel
Reports/Tools - Delinquency Report
The Delinquency Report provides account information at a specified hierarchy for
any accountholder considered past due on their card.
Delinquency Management
®
Account
NameAccount
Status
SSN
Last Pmt
Date
Qualifier
Current
Bal.
Pmt Due
Date
Past
Due Amt
Pmt. Amt.
CTD
30 Day
Past Due
60 Day
Past Due
DoD Travel
Reports/Tools - 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.
Delinquency Management
®
Hierarchy
Level 5 & 7
Account
Status
SSN
Account
Name
Pmt. Due
Date
Past
Due Amt
Days Past
Due
Metrics
Last
Statement
Balance
DoD Travel
Reports/Tools – Salary Offset Report
The Salary Offset Detail Report lists accounts that have been enrolled in this
program within a specified hierarchy and the cardholders current balance.
Delinquency Management
®
DoD Travel
The Salary Offset Summary lists total amount of cards and current total balance of
cards within the hierarchy choice
Reports/Tools - 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.
Delinquency Management
®
Account
Number
Account
Status
SSN
Account
Name
Pmt. Past
Due
Date
Suspended
Last
Statement
Bal.
Number of Times
Suspended Past
YearMetrics
Past
Due
Amt.
DoD Travel
Reports/Tools - 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).
Delinquency Management
®
Account
Number
Account
Name
Current
Balance
Transaction
Date
Merch.
City
Merchant Name Merch.
State
MCC
Metrics
Total Trans
Amount
DoD Travel
Reports/Tools - Account Activity Report
The Account Activity Report provides detailed information regarding transactions for
each account within a specified hierarchy level.
Delinquency Management
®
Account
Name 1
Account
Name 2
Account
Type
Account
Type
Transaction
Date
Trans
Post Date
Merchant
Name
Merch.
City
MCC
Merch.
State
DoD Travel
Reports/Tools - Declined Authorization Report
The Declined Authorizations Report lists all attempted transactions and detailed
reasons for decline and type of purchase within a specified hierarchy.
Delinquency Management
®
Account
Name 1
Decline
Date
Decline
Time
Primary Dec.
Reason
Decline
Reason 1
Decline
Reason 2
Merch.
CityAccount
Number
DoD Travel
Reports/Tools - Blocked MCC Report
The Blocked MCC Report shows all attempted transactions against excluded or
restricted Merchant Category Codes (MCC).
Delinquency Management
®
Transaction
Date
Transaction DB-
CR Indicator
MCC
Merchant
Name MCC
Description
Transaction
Post Date
DoD Travel
7. Current DoD Results
®
Delinquency Management
Current DoD Delinquency Results
Individually Billed Accounts
®
Delinquency as a % of Total Spend $ = 2.09%
Delinquent $
($ Delinquent as of June 2010)
Spend $
(Jan ’10- June ’10)
$49.9M $ 2.39B
Delinquency is defined as accounts > 31 days past due or 61 days past billing
DoD Travel
Delinquency Management
Current DoD Delinquency Results
Centrally Billed Accounts
®
Delinquency as a % of Total Spend $ = 1.21%
Delinquent $
($ Delinquent as of June 2010)
Spend $
(Jan ’10- June ’10)
$8.1M $ 673M
Delinquency is defined as accounts > 31 days past due or 61 days past billing
DoD Travel
Current Component RPP/Salary Offset Results
*Data thru: 7/23/10
Reduced Payment
ProgramSalary Offset
# of Accounts $ # of Accounts $
Air Force 38 $49,763 Air Force 536 $713,020
Army 150 $170,258 Army 2,342 $2,965MM
Navy 40 $52,342 Navy 683 $823,252
Marines 11 $18,450 Marines 119 $164,391
Independents 9 $15,497 Independents 22 $24,439
TOTALS 248 $306,310 TOTALS 3,702 $4,690MM
Delinquency Management
®
DoD Travel
Credit Losses by Component YTD 2010
Losses Year to Date 2010
# of Accounts ($)
Air Force 117 $184,119
Army 276 $416,406
Navy 214 $335,297
Marines 33 $74,589
Independents 10 $25,205
TOTALS 620 $1,035,616
Delinquency Management
®
DoD Travel
Data thru: July 2010
Summary
®
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!
Summary - Remember…
®
DoD Travel
Delinquency Management
Summary - Contact Information
Email: [email protected]
®
DepartmentContact Numbers
Hours of OperationToll-Free Collect
Agency /
AOPC Service866-670-6462 (757) 853-2467
Monday – Saturday
7:00 am to 9:00 pm EST
DoD
Collections866-670-6461 (757) 853-5708
Monday – Friday
8:00 am – 9:00 pm EST
Cardholder
Customer
Service
800-200-7056 (757) 852-907624 hours a day;
7 days a week
DoD Travel
Thank you for attending!
Visit the Citibank Welcome Center
– Across from Room#B212
– National Industries for the Blind will have a display of products
– Conference Slide Show – come see yourself shine!
Visit the Citibank One-on-One Lab - B210
Visit the Citibank Mini Sessions – B209
Ask Citi Link – Tell us your thoughts
®
RemindersDoD Travel
Delinquency Management
®
Interactive Training EventsDoD Travel
Citi offers onsite training at no cost for agencies meeting the required minimum participant level of 20 or
more as set forth in the GSA SmartPay2 Master Contract.
Regional Citi Training Locations
– Norfolk, VA
– Washington, DC
– Visit www.defensetravel.dod.mil/passport to register for these sessions
Upcoming Training
– San Diego, CA – September 21st – October 1st
– Grafenwoehr, Germany – October 18th – October 22nd
– Kaiserslautern, Germany – October 25th – October 29th
Visit www.defensetravel.dod.mil/passport to register for these sessions
On-Site at your office
– 20 participant minimum
Distance Learning - Video Conferences
Please email us at [email protected] and a Citi training coordinator will work with you
directly for On-site or Distance Learning sessions.
Delinquency Management
Q&A: Delinquency Management
Deanne Burbee
®
DoD Travel
Terms & Disclosures
Tuesday, July 28, 2009
®
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