Interest Pause in Collection-Master – What You Need to Know (Revised)
Since the initial presentation, Vertican has found an issue in the instructions in the Collection-Master Interest Pause Town Hall. It suggested that when building the [3-2] report to pull N46 (Interest Due). However, STORED_INT is meant to be the Total Interest Accrued on the claim. This value then subtracts payments made to interest giving you the Total Interest Due. If interest was paid prior to [2-S-5] Interest Swap program, then the CM EDI instructions to re-activate interest will cause the interest to go negative.
In the condition there were no payments to interest prior to the [2-S-5] Interest Swap program running, then the instructions will work as intended and you can ignore the rest of this email.
However, if the firm has payments to interest prior the [2-S-5] to CM EDI import, then it is recommended to build a report with the new instructions to successfully facilitate adding interest back to the claims as of a certain date. The new instructions do not include STORED_INT field. The value of STORED_INT will not change if the interest has been stopped.
Only in the event that your firm has had payments to interest prior to the [2-S-5] Interest Swap and has already followed the prior instructions and used CM EDI, will Vertican assist in reviewing the data and getting it corrected. Keep in mind, if there are payments made after the re-activation date, these may need to be reversed and reposted after fixing the interest. If this is the case, please reach out to Client Services at 1-800-435-7257 or send an email to firstname.lastname@example.org. Please provide the following pieces of information.
The date [2-S-5] Interest Swap was run and the effective date that was used.
The CM EDI file that was used to re-activate interest.
Please remove any claims from this file that have already been corrected manually.
The date that CM EDI was imported.
[4-1-3-3-2] FINAN export:
Starting Date = Date [2-S-5] Interest Swap was run
Ending Date = Today
This is the first time that Vertican had to create a solution for stopping interest and re-starting later. We apologize for any inconvenience this may cause.
Click here for a revised version of the Collection-Master Interest Pause Town Hall presentation.
We’ve been closely monitoring how the COVID-19 virus has been impacting our clients and community. Additionally, we have learned that some jurisdictions are requiring creditors and law firms to cease charging interest during this time. If this is one of the changes you must implement, we are here to help educate you on the interest pause in Collection-Master.
As a result, Vertican recently offered some relief to issues the pandemic may have caused to your business with the first of our Collection-Master Town Hall Meetings.
In this town hall, Vertican Business Systems Analyst, Julia O’Day, discussed how to create a report of the current interest using Global Interest Swap [2-S-5] to remove the interest rates and using CM EDI to restore them. Some questions were asked by attendees, and solutions provided by Julia. We received a lot of positive feedback and are in the process of developing additional town halls to bring you more of the most up-to-date information and solutions.
Vertican will also continue to carefully watch the situation as it affects our industry and support our clients whenever possible.
Finally, be sure to stay tuned or more information on a stimulus package Vertican will soon be offering. Vertican considers our clients to be partners and realizes that now, more than ever, we need to work together through this complicated time.
Did you attend our Collection-Master Town Hall? Let us know your thoughts in the comments section below.