Delinquency Management for your Travel Card Program …

1 Delinquency Management for your Travel Card Program DoD TravelDeanne BurbeeSenior Vice President, CitiGSA SmartPay Conference 12thAnnual GSA SmartPay ConferenceAtlanta, GAAugust 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 daysHouse RulesDelinquency Management DoD TravelDelinquency ManagementThis 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 & Objectives DoD TravelDelinquency Management1.

2 Delinquency Overview2. Delinquency Timeline/Critical Dates3. Common Causes of Delinquency /Myths4. Citi Collection Efforts5. Delinquency Management reports/tools6. Best Practices/AOPC Controls7. Current DoD Results8. Summary9. Q&A/Contact InfoGoals & ObjectivesDoD Travel1. Delinquency Overview Delinquency ManagementDelinquency 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 NOTallowed DoD TravelDelinquency Management Cardholder payment options Split disbursement (mandatory for military) Alternative payment options Additional payment information is available online at Resources; APC Guides; Payment Options Guide Reimbursement questions/issues contact DFAS Travel Assistance Center at 1-888-HELP1 GODelinquency Overview (continued)Payment TypeMethod to Submit PaymentChecksCitibank Govt Card Services, Box 6575, The Lakes, NV 88901-6575 WireIf made before 1:00 PM EST, should post the same business dayACHC ardholder can call 1-866-670-6461 to Pay-by-Phone through their personal DDA account -free of chargeCardholder Statements & Payments (CSP)Cardholder can make an online payment using their personal checking (DDA) account free of charge DoD Travel2.

3 Delinquency Timeline Overview Delinquency ManagementDelinquency 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 $ 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 TravelDelinquency ManagementDelinquency 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 effortsAdditional Account Cancellation Scenarios: (2) NSF checks within (12) month period, or (3) payments returned (non-NSF) within a (12) month periodReinstatement :Reinstatement is not guaranteed, must meet eligibility criteria AOPC submits Reinstatement Application to (866) 951-8005.

4 If application 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 reinstatementpermitted in life of account DoD TravelDelinquency ManagementDelinquency Timeline Overview Days Past BillingActivitySystem Generated LetterEvents0 Original Cycle Date25 Original Payment Due Date302ndCycle45 Past Due Letter55 Pre-Suspend Letter61 Suspend LetterAccount Suspends91 Due Process / RPP Letter 100 (balance >$500)121 Pre-Cancellation Letter126 Cancellation LetterAccount Cancels / Closes127+Salary Offset File sent to DFAS131 Salary Offset Inbound File from DFAS211 Account Charges Off / Reports to Personal Credit BureauDoD TravelDelinquency ManagementDelinquency Fee Timeline Days Past BillingActivityFee TypeFee Amount0 Original Cycle Date25 Original Payment Due Date302ndCycle751stLate Fee$291052ndLate Fee$29127+Salary Offset Fee$801353rdLate Fee$291654thLate Fee$291955thFinal 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 Fees3.

5 Common Causes of Delinquency / Myths Delinquency ManagementCommon 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 checksCauses DoD TravelDelinquency 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 informationCommon Causes of Delinquency Causes vs.

6 Myths (cont)MythsDoD Travel4. Citi Collection Efforts Delinquency ManagementCiti 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 TravelDelinquency ManagementCiti 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.

7 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 TravelDelinquency 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 ProgramsCiti Collection Efforts -Collection CallsDoD TravelDelinquency Management Once account charges off; it may be referred to a 3rdparty 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 bureauCiti Collection Efforts -Collection Calls (continued)DoD TravelDelinquency ManagementStatement Messages: 31-60 We did not receive your payment last month.

8 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 to make an online payment. Citi Collection Efforts -Statement MessagesDoD Travel # Days Past BillingStatement Message31 -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.

9 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 to make an online payment. Delinquency ManagementStatement 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 to make an online payment. 181-210 The past due balance on your canceled account has not been paid in full.

10 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 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 make an online payment. Citi Collection Efforts -Statement Messages (continued)DoD Travel # Days Past BillingStatement Message151 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 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.