W36 Delinquency Management for your Travel Card …€¢ Turn cell phones and pagers to vibrate ... yCards are Individual Liability ... 4/16/09 131 Salary Offset Inbound File from

Delinquency Management for your Travel Card Program –

DoD Travel

Deanne BurbeeVice President, Citi

GSA SmartPay Conference

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11th Annual GSA SmartPay Conference

Phoenix, ArizonaJuly 28th - July 30th, 2009

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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• Must be scanned to receive CLP credits

− For each course• Unanswered Questions

− Q-Cards & Ballot Boxes− Answer to be emailed after the

conference - within 45 days

House Rules

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Delinquency Management


This 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 Program.

Goals & Objectives

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Agenda

Q&A/Contact Info9.Summary8.Current DoD Results7.

Best Practices/AOPC Controls

6.

Delinquency Management reports/tools

5. Citi Collection Efforts4.

Common Causes of Delinquency/Myths

3.

Delinquency Timeline/Critical Dates

2. Delinquency Overview1.

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1. Delinquency Overview

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Cards are Individual Liability– Individual cardholders are responsible for the

timely payment of balance upon receipt of billing statement

GSA Contract requires use of Card for all Government Travel– Cardholder is only reimbursed for “official”

Government Travel; personal use of card IS NOT allowed

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Cardholder payment options– Split disbursement (mandatory for military)– Alternative payment options

– Additional payment information is available online at www.citimanager.com/dodhomeunder Resources; APC Guides; Payment Options Guide

Reimbursement questions/issues contact DFAS Travel Assistance Center at 1-888-HELP1GO

Delinquency Management (continued)

Cardholder can make an online payment using their personal DDA account – free of charge

Cardholder Statements & Payments (CSP)

Cardholder can call 1-866-670-6461 to Pay-by-Phone through their personal DDA account - free of chargeACH

If made by 1:00 PM EST, should post same business dayWire

Citibank Govt Card Services, P.O Box 6575, The Lakes, NV 88901-6575Checks

Method to Submit PaymentPayment Type

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2. Delinquency Timeline Overview

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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$29.00

– 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 ®


Delinquency Management – Critical Timelines / Events (continued)

Critical Timelines / Events (continued)– Reinstatement is not guaranteed, must meet

eligibility criteriaAOPC submits Reinstatement form. If…

Approved: $29 reinstatement fee applied to first statementDenied: Must wait 60 days to reapply (only a restricted card will be issued)

One reinstatement permitted in life of account

– 210 Days Past Billing (charge off) = Reported to Cardholder’s Personal Credit Bureau

Accounts Cancellation:2 NSF checks within 12-month period, or3 payments returned (non-NSF)

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Delinquency Management –Activity Matrix (example)

®Account Charges Off / Reports to

Personal Credit Bureau2117/5/09

Salary Offset Inbound File from DFAS1314/16/09

Salary Offset File to DFAS1274/14/09

Account Cancels / ClosesCancellation Letter1264/12/09

Pre-Cancellation Letter1214/6/09

Due Process / RPP Letter 100 (balance >$500)913/8/09

Account SuspendsSuspend Letter612/6/09

Pre-Suspend Letter551/31/09

Past Due Letter451/21/09

2nd Cycle301/6/09

Original Payment Due Date2512/31/08

Original Cycle Date012/6/08

EventsSystem Generated LetterActivityDays Past

BillingCycle Date

3. Common Causes of Delinquency / Myths

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Causes vs. Myths

Late or non-submission of travel vouchers– During travel/TDY

Slow / manual reimbursements by agency

Unclear on policy and/or procedures – DoD 101 – Travel Card Training is available on the GSA-SmartPay website

NSF returned checks

Employee misuse– Spending reimbursement

– Excessive personal card use

– Overspending per diem

Improper handling of a dispute

Causes

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Causes vs. Myths (continued)

Myths

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Account management– Belief that they don’t have to pay until after the statement is received– Belief that vouchers do not have to be filed until a statement is received– Belief that the account will not report to personal Credit Bureaus– Belief that they can use Card for personal use - Card is not a Personal credit card it is a

Government Travel Card

Military Discharged or Government Service Cardholders no longer employed– Belief that collection efforts cease– Belief that agency is unable to assist

4. Citi Collection Efforts

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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 charges privileges have been

suspended due to non-payment. States they will automatically be reinstated when payment for past due amount has been received ®


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. 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

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Collection Calls

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 Programs

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Collection Calls (continued)

Once account charges off; it may be referred to a 3rd party collection agency and/or legal network to pursue more stringent collection efforts

Upon charge off (210 days past billing) the account reports as a R9 charge off on cardholders personal bureau

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Statement Messages

“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 home.cards.citidirect.com to make an online payment.”

121 - 150

“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.”

91 - 120

“Your account is past due and your charging privileges have recently been suspended. Please pay the past due balance immediately.”61 – 90

31 - 60

# Days Past Billing

“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.”

Statement Message

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Statement Messages (continued)

“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 home.cards.citidirect.com to make an online payment.”

Charge-Off

“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. Please call 1-866-670-6461 to pay by phone or visit home.cards.citidirect.com to make an online payment.”

181 - 210

151 – 180

# Days Past Billing

“Your past due account has been canceled and submitted for SalaryOffset. You are still responsible for ensuring your balance is paid in full. Please call 1-866-670-6461 to pay by phone or visit home.cards.citidirect.com to make an online payment.”

Statement Message

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There are 3 potential Salary Offset responses from DFAS that would determine eligibility of a member. They are as follows:

Citi Collection Efforts – Salary Offset

Account has been reviewed by DFAS and was declined. DFAS requirements for enrollment into Salary Offset were not met. This decision prevents the same account from being resubmitted for review in the future.

Not Eligible

Account has been reviewed, but currently cannot be enrolled into Salary Offset. The account may be eligible for enrollment in the future.

Future Eligible

Enrolled Account has been reviewed and approved by DFAS for enrollment into Salary Offset.

DFAS Salary Offset Responses

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5. Best Practices/AOPC Controls

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5. Best Practices

Managing Delinquency

Utilize Cardholder Statements & Payments Option– Easier access while traveling– Cardholders can access CS&P through self-

registration– Payments made via online post faster than

mailing and is free– Can view current statement – Can view statement history (prior statements)– Can view unbilled transactions to get a jump on

filing vouchers

Travel Policy and Compliance– Maintain a consistent card use policy – educate

cardholders frequently– Create, communicate and exercise penalties for

misuse and/or abuse of program– Educate cardholders to file travel vouchers as

soon possible

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5. Best Practices

Managing Delinquency (continued)

Maximize Card Control– Audit for unnecessary MCC’s regularly – utilize the

Block MCC Report– Minimize credit limits (cash and purchase) as

appropriate– Quickly update separated cardholders

Utilize Citi Online Reporting Tools– Monitor spending and payment history for

accounts– Empower AOPC’s to take action against

delinquent cardholders

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6. Delinquency Management Reports/Tools

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6. Delinquency Management Reports / Tools

Citibank® Custom Reporting System (CCRS)

Delinquency Report

Aging Analysis Report

Pre-Suspension Report

Non travel Related Activity Report

Account Activity Report

Declined Authorizations Report

Blocked MCC Report

CCRS provides access to detailed and easy-to-use reports to assist you with managing delinquencies within your hierarchy

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WHAT?– Dollars delinquent percentage rate calculation changed for SP2

Used to be based on outstanding dollars

Now based on average of net charge volume over rolling 4 months

WHY?– Prior, dollars from accounts that charged and paid within the same cycle were not

counted

– Seasonality of DoD travel caused spikes in delinquency

– Per OMB Circular A-123 Appendix B

HOW?– New calculation averages net charge volume from prior 2-5 months

Factored Net Charge Volume

– Total Delinquent Dollars / Factored Net Charge Volume total = Percent Delinquent Dollars


Program Metrics & Delinquency Aging Analysis Report

6. Delinquency Management Reports / ToolsProgram Metrics – Delinquency Aging Analysis Report – Delinquent Accounts Percentage

Delinquent Accounts total divided by Open Accounts total

All accounts with balances 60 – 209 days past billing

Total of open accounts

Includes active and deactiveaccounts

Accounts Delinquent Percentage

Delinquent AccountsOpen Accounts

6. Delinquency Management Reports / ToolsProgram Metrics – Delinquency Aging Analysis Report – Delinquent Dollars Percentage

Delinquent Dollars total divided by Factored Net Charge Volume total

All dollars 60 – 209 days past billing

Add Net Charge Volume totals from Feb, March, April, May

Divide by 4

Dollars Delinquent Percentage

Delinquent DollarsJuly 2009

Factored Net Charge VolumeJuly 2009

Delinquency Report

The Delinquency Report provides account information at a specified hierarchy for any accountholder considered past due on their card.


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Account Name

Account Status

SSN

Last Pmt Date

Qualifier

Current Bal.

Pmt Due Date

Past Due Amt

Pmt. Amt. CTD

30 DayPast Due

60 Day Past Due

Aging Analysis

The Aging Analysis Report provides a summary of delinquencies for a specified hierarchy.


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HierarchyLevel 4 & 5

Days Past Due

Account Type

Factored Net Charge Vol.

Net Charge Volume

Total Current Balance

Total Outstanding

Balance

Pre-Suspension Report

The Pre-Suspension Report lists accounts that are between 45 – 60 days past billing from the billing cycle date within a specified hierarchy.


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HierarchyLevel 5 & 7

Account Status

SSN

Account Name

Pmt. Due Date

Past Due Amt

Days Past Due

Metrics

Last Statement Balance

Suspension Detail Report

The Suspension Detail Report lists accounts that have been suspended and are eligible for cancellation. Accounts appear on this report at 61 – 125 days past the billing cycle date.


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Account Number

Account Status

SSN

Account Name

Pmt. Past Due

Date Suspended

Last Statement

Bal.

Number of Times Suspended Past

YearMetrics

Past DueAmt.

Non-Travel Related Activity Report

The Non-Travel Related Activity Report provides information to identify accountholders with transaction activity (such as cash, fuel, or food) occurring without other associated travel activity (such as airline, car rental, or lodging).


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Account Number

Account Name

Current Balance

Transaction Date

Merch.City

Merchant Name Merch.State

MCC

Metrics

Total Trans Amount

Account Activity Report

The Account Activity Report provides detailed information regarding transactions for each account within a specified hierarchy level.


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Account Name 1

Account Name 2

Account Type

Account Type

Transaction Date

TransPost Date

Merchant Name

Merch.City

MCC

Merch.State

Declined Authorization Report

The Declined Authorizations Report lists all attempted transactions and detailed reasons for decline and type of purchase within a specified hierarchy.


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Account Name 1

DeclineDate

DeclineTime

Primary Dec. Reason

Decline Reason 1

DeclineReason 2

Merch. City

Account Number

Blocked MCC Report

The Blocked MCC Report shows all attempted transactions against excluded or restricted Merchant Category Codes (MCC).


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Transaction Date

Transaction DB-CR Indicator

MCC

Merchant Name MCC

Description

Transaction Post Date

7. Current DoD Results

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7. Current DoD Results

DoD Delinquency Results

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$ 2.3B$75.6M

Spend $(Dec ’08- June ’09)

Delinquent $($ Delinquent as of 7/20/09)

Delinquency as a % of Total Spend $ = 3.3%

Delinquency is defined as accounts > 31 days past due or 61 days past billing

Current Component RPP/Salary Offset Results

*data as of 7/15/09

$767,522407TOTALS$34,74423TOTALS

$2,9172Independents$00Independents

$47,79928Marines$4,0732Marines

$127,23565Navy$5,0504Navy

$513,068276Army$19,61913Army

$76,50336Air Force$6,0024Air Force

$# of Accounts$# of Accounts

Salary OffsetReduced Payment Program

7. Current Component Results

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Summary

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• Delinquency management is everyone’s responsibility

• Implementing best practices is key to a successful program

• Improved delinquency management results in higher rebates and improved program integrity

• Citi is dedicated to making this process work for you!

Remember…

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Contact Information

Email: [email protected]

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24 hours a day; 7 days a week(757) 852-9076800-200-7056

Cardholder Customer Service

Monday – Friday8:00 am – 9:00 pm EST(757) 853-5708866-670-6461DoD

Collections

Monday – Saturday7:00 am to 9:00 pm EST(757) 853-2467866-670-6462Agency /

AOPC Service

CollectToll-FreeHours of Operation

Contact NumbersDepartment

Terms & Disclosures

Tuesday, July 28, 2009

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W36 Delinquency Management for your Travel Card …€¢ Turn cell phones and pagers to vibrate ... yCards are Individual Liability ... 4/16/09 131 Salary Offset Inbound File from

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