A Fresh Start Repayment Plan is a tool available to overdrawn customers that will allow them to repay the overdrawn balance in up to 4 payments and will also allow them to retain the use of their checking account. It also may help financial institutions recover and collect on accounts which may have otherwise charged off.
ODP Manager collection letters advise customers that have overdrawn balances of $100 or more that they may be able to pay back the overdraft balance in up to four installments rather than the entire balance at once. Interested customers are then assessed to determine the customer’s ability to qualify and repay the Fresh Start.
With each approved Fresh Start repayment plan, ODP Manager users can enter a repayment schedule for each account. The repayment schedule can be used to populate the Fresh Start Agreement or users can also populate the FS Agreement directly as an Ad Hoc Letter. The repayment schedule includes reminders that display when a FS payment is due. When the payment is due, ODP Manager users can check the core system to confirm if the payment has been made as agreed. Once verified, Fresh Start payments can also be tracked in ODP Manager.
If a customer’s Fresh Start payment is not paid as agreed (ten or more days past due), the Fresh Start is in default and the checking account should be closed and charged off. The Fresh Start Default letter in ODP Manager can be generated to notify the customer that the account has been closed, charged off, and reported to the appropriate agencies.
If any other Fresh Start letters are needed for accounts in a repayment status, an Ad Hoc letter template can be created. By entering the deposit account number, ODP Manager will pre-fill the account information. After the letter is generated, it will be tracked and retained in ODP Manager just like the other Collection and Custom letters.
ODP Manager includes two types of Fresh Start reporting. The Fresh Start Tracking report displays a list of all checking accounts currently under a Fresh Start repayment plan with a Fresh Start ODP Status code. If details are needed about current repayment schedules, a Repayment Schedule summary report can also be exported to PDF or Excel.
Please contact Strunk Support at email@example.com with any questions or to find out more details about ODP Manager’s Fresh Start Repayment Plan features.