Charge-off
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Charge-off

Business Processes

Charge-off

Credit Bureau Reporting symbol Credit Bureau Extract Metro 2 Format users.

When a lease or loan needs to be charged off.

LeasePak Updates/Processes

  • U0212 Miscellaneous Customizations
  • U0114 Change Lease Key/Batch Change Key
  • U0462 Credit Bureau Extract

Relevant LeasePak Interface Fields

  • U0212 Miscellaneous Customizations
    • "Deficiency portfolio (Y/N)"
Metro 2 Impacted Fields Relevant Code Values
Original Charge-off Amount – LP will calculate and store at time of charge-off N/A
Date of First Delinquency – LP will maintain the existing DOFD at time of charge-off until the lease is no longer reported N/A
Account Status – LP will report 97 or 64 97 – Unpaid balance reported as loss (charge-off)
64 – Account paid in full; was charge-off
Payment History Profile – LP will report L based on Account Status L – Charge-off
Scheduled Monthly Payment Amount – LP will report 0 N/A

Process Overview

When the User, either through interactive U0114 Change Lease Key or Batch Change Key, change keys a paid off or terminated lease into a portfolio that has been designated a deficiency portfolio, the lease is treated as a charge-off.

LP will determine whether or not a lease is charged off based on data from the new rld Table: Lease Deficiency:

  • Existence of RLD record AND rld.deficiency_c == 'Y' means that an NP/NC charge off was performed
  • Existence of RLD record AND rld.deficiency_c == 'N' means that NP/NC charge off was performed and now has been reversed
  • Non-existence of RLD record means that NP/NC charge off was never performed

LP will calculate and store Original Charge-off Amount and set the charge-off date, determine DOFD (if (blank) or (NULL)) and maintain this or the existing DOFD until the lease is no longer reported, set Account Status to 97 or 64 based on whether Original Charge-Off Amount is populated and whether there is open AR. Based on the Account Status, PHP will be set to L.

When Original Charge off Amount is populated, U0462 Credit Bureau Extract will use the appropriate Account Status and frozen stored DOFD and set Scheduled Monthly Payment Amount to 0.

LeasePak User Process

To designate a portfolio as a deficiency portfolio:

  • Use U0212 Miscellaneous Customizations to check "Deficiency portfolio (Y/N)" (set to 'Y')

To perform a charge-off:

  • Use interactive U0114 Change Lease Key or Batch Change Key to change key the lease into a designated deficiency portfolio

Note Level 1 This is the only charge-off method LeasePak will support at this time to comply with credit bureau reporting.

Note Level 1 This process will NOT report lease as a charge-off if the account is already in bankruptcy, unless the bankruptcy is dismissed or withdrawn.