Settlement Process

Users can set a settlement amount for each claim on an account.  CollectMax will maintain the balance remaining on the settlement and notify the users when the settlement is reached.  

Client Settings

Client specific settlement instructions can be entered on the client level and view from the debtor screen when making settlement arrangements with the debtor, when determining when the settlement is reached and automation for when a settlement is reached.

From the client's account, click the tab to display the client's settings.

Settlement Options

To set some automation options for determining when the settlement is reached and once a settlement is reached, see below.

• Set Status: To have the status changed if a payment has a Settlement type, check the box next to Set Status.  Select the button to select the new status code for the account.  
• Add Action: To have an action added if a payment has a Settlement type, check the box next to Add Action.  Select the   button to select the new action code to be added to the account.  Enter the Wait days.
• Tolerance: To set an allowable percentage or dollar amount of variation from the settlement, check the box next appropriate boxes.
  • Percentage: Enter the percentage of the settlement that this client will accept as being fully settled. If they require 100%, then do not check this box or enter a percentage. For example, your client may state that they only require 98% of the settlement to consider the account settled.
  • Dollar Amount: Enter the dollar amount under the settlement amount that this client will accept as a full settlement. For example, your client may state that if it is with in $10 of the settlement amount, consider it settled.
• Maximum Settlement Months: If this client only allows a certain amount of months to reach the settlement, enter the number of months in the Box. When users set a settlement, the will only be allowed to select up to the maximum amount of months. * This is a Version 8 Feature.

Settlement Authority

In the Authority section, enter the Settlement Instructions authorized by the Client.  

These will display in the settlement section of the debtor's claim and should reflect any instructions to allow collectors to take settlements.

Settlement Calculations

CollectMax allows you to set the acceptable percentages to auto-calculate a settlement amount on the debtor account. Enter the percentage of each balance segment that your client will allow you to take in each field. Check the box to having it figure new interest into the interest amount. This will allow you users to use the calculate button on the Settlement Screen of a debtor's account to quickly figure the settlement amount.

Click the button.

 Adding a Settlement to a Claim

From the debtor's account, click the tab to display the claim screen.

Click the button in the Settlement Section to display the Settlement Summary Screen.

Click the button to view the Client authority to insure that the agreed settlement meets the clients criteria.

Click the to go back to the Settlement Summary Screen.

To add a settlement,  

• Click the button and select the Settlement Status:
  • Active - Settlement is an Active Settlement
  • Void - Settlement has been voided and is no longer valid
  • Inactive - No longer an active settlement
  • Broken - Settlement terms where not kept
  • Revised - Settlement details where revised
• Enter the Settlement Type:
  • Stipulation
  • Other
• Enter the Inception Date as the agreed settlement date.
• Enter the agreed settlement amount.   
• Settlement Percentage: CollectMax will automatically calculate this for you.
• Enter the agreed number of months until the settlement will be resolved. * If the drop down does not have the number of payment required, the client may not allow that many payments for a settlement.
• If the settlement percentage must be approved, enter the date approval was received.
• If the settlement number of payments must be approved, enter the date approval was received.
• Payments since inception: CollectMax will automatically calculate this for you.
• Remaining Balance: CollectMax will automatically calculate this for you.
• Enter the stipulation filing date.
• Enter the stipulation total.
• Enter any Instructions or Comments regarding the settlement.
• Click the button to add a settlement to this claim.   

It is recommended that you enter a corresponding payment plan when setting up a settlement.

Click the to enter or view a payment plan to meet the settlement balance.   See  Payment Plans.

 Managing a Settlement

Once the settlement is added, the claim screen will display the remaining balance in the Settlement Section.

CollectMax will track payments made after the Inception Date.  

Click the button to display a list of all payments paid on this claim to date.  

The settlement can be modified to change the terms or make it inactive or void.  Click the button and make the changes.  An inactive or voided settlement will leave the settlement information but the payment tracking will be stopped.  To remove the settlement completely, click the button.

When a payment is posted that meets or exceeds the settlement amount, a notifying message will be displayed.

Click the button to code the payment as settlement.   Click the button to leave the payment as partial paid.