How To Send The Validation Notice

This topic goes over how to send the Validation Notice. This functionality was built for the US's CFPB Regulation F, but it can be used in any region where sending an initial notice requires a delay in contacting the consumer.

Summary

1. Create the notice(s)
2. Setup the system
3. Add accounts
4. Print notice
5. Handling returned mail or alternative languages
6. Lettering Cosigners

Create Notices

In Collect!, create the base notification letter. In the Member Center, and the shipping default version of Collect!, you will find the CFPB Model Validation notices.

With CFPB, the consumer is required to be given a notice with a balance at a specified date supplied by the client. Below the balance, there needs to be an itemization of any charges that were added to the balance after the specified date.

Example 1: Last Statement Date - the balance would be the total amount from the last statement provided by the client. The detailed itemization would be any fees, interest, etc. added by the client or agency after the Last Statement Date.

Example 2: Transaction Date - the balance would be the total amount of the original invoice provided by the client. The detailed itemization would be any fees, interest, etc. added by the client or agency after the Invoice Date.

If you are required to supply a "Date of Dispute," you can use the @CCVALDATE command in the letter to populate a date variable based on the setup in the next section. This date will populate the "Validation" date on the Debtor form.

Ensure that the Report Definition Name is not similar to any other report/letter name in your system. Example: Model Validation Notice

If required by your region, create versions of the notice in all other applicable languages. Ensure that the Report Definition Name matches the main notice, with the language name appended to the end. Example: Model Validation Notice - Spanish

If required by your region, create versions of the notice for Cosigners in the applicable languages. Ensure that the Report Definition Name matches the main notice, with the cosigner descriptor and language name appended to the end. Example: Model Validation Notice - Cosigner or Example: Model Validation Notice - Cosigner Spanish

WARNING: The "alternative" versions for cosigner and language must start with the same text as the main notice. See next section.

Setup The System To Send The Notice

Company Detail: Fill in the Validation Report field with the MAIN NOTICE letter name. In the examples above, it is Model Validation Notice. It must be the one with the shortest text. This is because Collect! will use a partial match to determine if the alternatives have been sent.

If you are "retiring" and older version of the notice, do not add OLD to the end of the name, like "Model Validation Notice - OLD," as the system will still consider it a valid letter if printed. If you want to retire it and still keep a copy, then add text to the beginning of the name, like "OLD Model Validation Notice."

Once the primary letter is selected, fill in the Business Days and Calendar Days fields. Business Days will skip weekends and any Holidays that you have setup. If not applicable, leave as zero. The values are used when determining the Validation date on the Debtor form and with the @CCVALDATE report command.

Contact Controls: If you have different versions of the validation notice by region like State, the recommended practice is to use IF statements in the original letter to keep things simple. If you prefer to create multiple reports, then you can use Contact Controls with Type Letter to specify the Validation Report for that State.

Contact Plans: If applicable, setup any new business Contact Plans to queue up the Validation Notice letter contact.

Import Maps: Ensure that your new business contact plans are setup to properly populate the correct data points for the financial calculations. Your clients must provide you with the applicable information to send out an accurate notice.

Client Settings: On each Client, click the Advanced button to open Client Settings. Fill in the applicable Itemization Date. This is the date that the client will supply indicate the "Balance of" date.

Adding Accounts

When loading accounts via Import or manual entry, all you have to do is ensure that the correct data from the Client is being loaded and the correct Contact Plan is setup to run.

On the Debtor form, click the Advanced button or the Principal field.

At the bottom, there is a tab called Assignment.

On the Assignment tab, populate the applicable dates, as per the clients itemization. For security reasons, users cannot edit the Debtor's Itemization Date. This is due to the fact that it should never change during the life of the debt, unless the account becomes a Judgement.

If the client provides different Itemization Dates on an account-by-account basis, then you can use the Import module or a Utility Script to override the value.

WARNING: The Balance at Itemization is a balance override in the stock Validation Notice letter. Do not use this unless your letter is specifically setup to handle this scenario.

After the dates are populated, fill in the Original Principal and other Original fields, if applicable.

Collect! will sum them up and populate the Assigned Amount field.

Itemization Date Math In Stock Validation Notice

Transaction Date:
Balance at Itemization = Original Principal
Items added to Balance After Itemization = Total Principal - Original Principal + Total Interest + Total Fees + Total Legal + Total Misc + Total Other - (Total Paid - Total Adjustments)

Judgement:
Balance at Itemization = Judgement Principal + Judgement Interest + Judgement Fees (Attorney Fees) + Judgement Legal (Court Costs)
Items added to Balance After Itemization = Total Interest - Judgement Interest + Total Fees - Judgement Fees + Total Legal - Original Legal + Total Misc + Total Other - (Total Paid - Total Adjustments)

All Other:
Balance at Itemization = Assigned Amount (Sum of Original Charges - Original Paid)
Items added to Balance After Itemization = Total Interest - Original Interest + Total Fees - Original Fees + Total Legal - Original Legal + Total Misc - Original Misc + Total Other - Original Misc - (Total Paid - Total Adjustments - Original Paid)

Print The Notices

If your New Business Contact Plan has the notice as part if it, then the applicable letter contact will show up on the Contacts tab.

You can print the letter manually on the account, run your Scheduled Batch Letters, or run your Letter Service.

Once the Letter Contact is marked as completed, during the printing process, Collect! will check the Letter Contact Description and compare it to the settings looking for the partial match on the Validation Report field on the Company Detail or Contact Control forms. If there is a match, Collect! will update the Validation Date on the Debtor form.

Handling Returned Mail

Undeliverable:

If the letter comes back in the mail as undeliverable, you will need to go to the Debtor and uncheck the Address OK box. This will clear the Validation Date on the Debtor form.

Once you have obtained a new address, check the Address OK box then reprint the letter either manually or via batch, with a new Letter Contact with the applicable Description.

Alternative Language Requested:

If the form comes back in the mail with the box checked indicating the request for a notice in a different language, you will need to go to the Debtor and reprint the letter either manually or via batch, with a new Letter Contact with the applicable language Description.

WARNING: By default, if the current date is less then the Validation date, Collect! will automatically update the Validation date with the new date. If the current date is past the Validation date, you will need to use judgement on whether or not to reset the date. You can reset the date by unchecking and checking the Address OK box. Use this at your own discretion.

Lettering Cosigners

If you are batch printing letters to Debtors and have selected "Print to Cosigners" on the Batch Letter Options form, Collect! will update the Cosigners at this point. The Cosigner copies of the Letter will be part of the METAFILE on the Debtor's Letter Contact.

If a Cosigner's letter is returned or a new address has been supplied and they need a separate letter, then you can open the applicable Cosigner and print the applicable Cosigner version of the notice manually. You can also create a Cosigner Letter Contact with the applicable version of the notice in the Description field and when you run your batch letters, you can select Cosigner in the Process field on the Batch Letter Options form.

When the letter is printed from the Cosigner, then the Cosigner Contact will contain the METAFILE image of the letter that was sent.