W36b Delinquency Management for your Civilian Trav&Purch ... · To ensure the best possible learning experience for participants, please adhere to the following house rules: • Turn

Delinquency Management for your Civilian Travel / Purchase Card Program

Deanne BurbeeVice President, Citi

GSA SmartPay Conference

®

11th Annual GSA SmartPay Conference

Phoenix, ArizonaJuly 28th - July 30th, 2009

®

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


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

®



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

®


– 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

®

2. 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”– 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


Delinquency Management (continued)

®

“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


Delinquency Management –Activity Matrix

®

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

®


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

®

Myths

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 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


Collection Letters

®

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


Collection Calls

®

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


Collection Calls

®

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


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

®


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

®


Citi Collection Efforts – Salary Offset

®

• 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

®

5. Best Practices / AOPC Controls

Managing Delinquency

®

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

®

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

®

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

®

Delinquency Report

The Delinquency Report provides account information at a specified hierarchy for any accountholder 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 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.


®

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.


®

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).


®

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.


®

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.


®

Account Name 1

DeclineDate

DeclineTime

Primary Dec. Reason

Decline Reason 1

DeclineReason 2

Merch. City

Account Number

Blocked MCC Report


®

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 GSA Results

®

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

®

Summary

®


• 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…

®


Contact Information

®

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

®

IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment. Nor are we acting in any other capacity as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.

We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents, or other forms of identification, to verify information provided.

Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any time without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof and are subject to change without any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a position in any such instrument at any time.

Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees from offering, directly or indirectly, a favorable or negative research opinion or offering to change an opinion as consideration or inducement for the receipt of business or for compensation and (ii) prohibits analysts from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.

© 2009 Citibank, N.A. All rights reserved. Citi, Citi Arc Design, CitiDirect, Citimanager, Citibank Custom Reporting System, Citibank Electronic Reporting System, are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions. Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.

©2009 Citibank, N.A. All rights reserved. Citi, Citi and Arc Design and CitiDirect are trademarks and service marks of Citigroup Inc., used and registered throughout the world.

®

Documents

W36b Delinquency Management for your Civilian Trav&Purch ... · To ensure the best possible learning experience for participants, please adhere to the following house rules: • Turn