Accounts: Deal - Credit Bureau
This is used to setup and track credit bureau reporting. Please refer to your credit bureau manual for detailed descriptions of the fields presented on this screen.
Layout / How to
To report a deal to the credit bureau, it must be for a personal loan or lease. You should make sure that the following criteria is present:
Name(s) and address(es).
Dates of birth.
Social security or social insurance numbers.
Mark Active? as Yes to turn on credit bureau reporting for this deal. Select the proper Account Type Code. Select the proper ECOA Codes (typically this is "1" for single person and "2" for joint).
This is all of the setup needed to start reporting this deal. There are more advanced settings, as explained below.
Exceptions and Overrides
Automatic History Profile Replace. Each month, the credit bureau process determines the history profile for the current and preceding 24 months. This history profile is a complete replacement for what has been reported to the credit bureau previously. This field is normally set to Yes until deal termination, when the credit bureau process will automatically change it to No. If you do not want to the credit bureau process to rebuild the payment history each month, then you can manually set this to No. Setting this to no means that you are going to manually assign the account status each month. Normally, you would leave this as Yes unless a repossession/charge-off is occurring.
Completion Override Date. This is the ultimate override date that will indicate that the deal is terminated as of the date entered, and that all payments have been made to-date, including a complete payoff to an asset balance of zero. The deal itself does not need to be terminated, and may still be active. This date overrides all credit bureau settings.
Terminated Deal Delinquency Override Date. This is used on terminated deals only in the situation where the borrower owes the remaining balance and has not paid it. This date is the start date for the number of days delinquent calculation. This overrides all delinquency calculations and uses the balance of the deal as the amount delinquent. (One example of when to use this would be if a lessee wrecked the vehicle and insurance did not cover the balance of the lease.)
Account Status Override. The account status code properly identifies the current condition of the account. Usually, the credit bureau process will automatically assign this code for you, based on the payment history. Should a special situation arise (such as a repossession, surrender, seriously past due, etc.), select one of the codes available via the corresponding button at the end of the field. By selecting a code, you are overriding the automatic account status assignment by the credit bureau process. The account status that you select will remain in effect until you either remove it or change it to another account status. (See additional information below for repossessions and voluntary surrenders.)
Special Comment Code. In conjunction with the Account Status Override field, use this to further define the account (e. g., closed accounts, accounts in dispute, or adjustments pending). The Special Comment Code must be reported as long as the condition applies.
Compliance Condition Code. Allows the reporting of a condition that is required for legal compliance; e.g., according to the Fair Credit Reporting Act (FCRA) or Fair Credit Billing Act (FCBA).
Terminated Deal Charge-off Amount. This is used for Account Status codes of 64 and 97, report the original amount charged to loss, regardless of the declining balance.
Force Zero Dollar Payoff. For terminated deals only, you may override the balance calculation and force the credit bureau to indicate that this deal is paid in full. Doing so will force the following conditions to exist:
Account Status code will be set to 13
Payment Rating will be set to 0
Date of First Delinquency will be set to 0
Special Comment code will be reported as blank
Current ending balance will be reported as 0
Amount past due will be reported as 0
Original charge-off will be reported as 0
Days late will be reported as zero
The Compliance Condition Code and the Last Paid Date will be reported and not overridden.
Last Reporting Results
This area reflects the results of the last credit bureau process for the deal. The fields that are presented are as follow:
Date Run. The PC date on which the credit bureau process was performed.
Through. The end reporting date that the credit bureau process was through.
Account status. The Account Status code assigned.
Payment Rating. A code that properly identifies whether the account is current or past due within the activity period being reported.
Last History Profile. Contains up to 24 months of consecutive payment activity for the previous 24 calendar months prior to the activity date (Through date) being reported. The most recent month is listed first.
The history tab conveys what the current credit bureau report looks like without any overrides or special conditions. It also tells you which payment paid for which billing (or term) in the deal. (Keep in mind that all service charges are removed from credit bureau reporting.)
Repossessions and Voluntary Surrenders
Please use these guidelines for charge-offs, repossessions, and voluntary surrenders.
Step 1: Overriding the Account Status Code for Credit Bureau month #1
In order to convey a special condition to the credit bureau, you must override the automatic account status code assignment. This is done by selecting the appropriate Account Status Override code. Select the code that matches your situation. Typically, it will be one of the following:
1. Voluntary Surrender: Code 95.
2. Repossession: Code 96.
3. Sent to collections (before the repo. or surrender occurs): Code 93
Set this code for the account and wait for the credit bureau to run for the month.
Step 2: Changes for Credit Bureau Month #2
After month #1 for this deal has processed for the credit bureau, set the Automatic History Profile Replace to No. This is important, as you do not want an automatic history rebuilt for the prior 24 months; you want the history built (going forward only) for the codes that you specify. Leaving this field as Yes will eliminate the override codes that you specified in prior months for this account.
If the account status has not changed from month #1, then there is nothing else to do for the deal.
Step 3: When the Account Status Changes, but is Not Charged Off Yet
When the account status changes, you will need to manually set the Account Status code to the next appropriate setting. In addition, you may wish to accompany the setting with a Special Comment or Compliance Condition Code.
Step 4: When the Charge-Off has been Completed
When the charge-off has been performed, set the Account Status Override to the appropriate code. For example:
1. Voluntary surrenders paid in full: Code 61.
2. Repossessions paid in full: Code 63.
3. Charge-offs paid in full: Code 64.
Code 97 may also fit your situation. Please review all of the codes.
If you choose to use codes 64 or 97, please fill in the amount of the charge-off in the Original Charge-off Amount field.
When to Stop Reporting the Charge-off
Please contact the credit bureau to determine how many months you should report a charge-off before marking the account as inactive for credit bureau reporting.
If the Borrower Makes Good...
If the borrower catches up with the outstanding payments owed and you wish to stop the special credit bureau reporting, you can simply reset (blank out) the Account Status Override, Special Comment, and Compliance Condition Code fields.
The Automatic History Profile Replace field should be left as No if you want to continue to show that the account went into default and then recovered. If you do NOT wish to show that the account went into default, then set this field to Yes and the prior 24 months will automatically be rebuilt, based solely on the number of days delinquent.