How to Manage Earned Performance Fees

This article reviews the new Earned Performance Fee Control feature. This article includes the following topics:

• Introduction
• Scenario 1
• Scenario 2
• Scenario 3
• Video

Introduction

The Earned Performance Fee Control feature calculates the total earned performance fees (EPFs) collected for an individual debt, even if those fees were collected on a settlement that is now voided.

NOTE: Users may customize how their EPFs are scheduled and paid out. We introduced “custom settlement fee scheduling” where users can customize the date and amount of payment on those dates.

Scenario 1

In this scenario, begin by going to the Contacts tab in the Forth CRM and selecting a client to update. Then, go to the Client Dashboard and select the Debts nested tab (i.e., subtab). See the page below for an example:

You should see a listing of creditors in the Enrolled Debts table at the top of the screen. These creditors owned the debts listed. Using the example shown above, note that there is an amount listed ($0.00) for Discover in the “Settlement Fee Cleared” column on the right.

This column shows the dollar amount and earned performance fees collected for this specific debt. If you do not have this column, you may customize this table by clicking Customize in the top right (see below). 

If you click on the Settlement Offer icon (the handshake icon shown in the middle of the image above), a new dialog box opens, and you will see the previously settled but now voided offer (see below). Click New Offer in the top right corner of the dialog box.

NOTE
The “New Offer” page may appear a little different than what is shown below.

In the middle of the screen, you should see a listing for "Settlement Fee."

The Settlement Fee will always show $0 until an offer is entered in the “Offer Amount” field on the left of the screen. Once the offer amount list is entered, click the “Start Date” field, where you may enter the start date for this offer.

To the right of the Start Date field is a field where you can enter the number of payments to be made. Enter the number of payments in the “# of payments” field (see image above). After you select the number of payments, press the tab key, and you will notice that the “Settlement Fee” now has a dollar amount listed as $1,899.90, which is 20% of the original balance.

NOTE: in this example, 20% is this consumer's Earned Performance Fee percentage.

The dollar amount listed under "Settlement Fee" will be the same as that listed in the Earned "Performance Fee Schedule," which may be viewed by scrolling down the page (see bottom part of the image shown above).

You will also notice two radio buttons located under the Performance Fee Schedule portion of the page. These radio button options are for "Auto-schedule" and "Custom-schedule". This enables clients to more deeply customize how fees are paid back to them as well as help ensure that the full fee is paid back as soon as possible.

Back to top

Scenario 2

In this scenario, a customer has paid all earned performance fees for an individual debt. Return to the Contacts tab, then click on the Debts nested tab. In this example, the customer paid $60 in earned performance fees.

Click the “Settlement Offer” icon (looks like shaking hands), and then the “New Offer” button in the top right corner. The following information appears.

Enter the new offer amount in the “Offer Amount” field. Under the Payment Schedule section, enter the payment start date and the number of payments to be made. Once these are entered, the amounts shown in the “Settlement Fee Cleared” and the “Settlement Fee” fields will be the same, leaving $0 in settlement fees remaining. Therefore, there will be no transactions under the Performance Fee Schedule because no earned performance fees are left to be collected.

Back to top

Scenario 3

In this scenario, a customer has not paid any earned performance fees on an individual debt.

In this scenario, there is an ECMC account with $0 in earned performance fees paid. To create an offer, click the handshake “Settlement Offer” icon (see below left), and then click "Create One" if there are no existing offers for this settlement. Otherwise, click the “New Offer” button in the top right corner (see below right).

On the next page, go to the "Offer Terms" tab (see below).

Note that the row containing Settlement Fee Cleared, Settlement Fee Remaining, and Settlement Fee is no longer visible. This is because this customer has paid no earned performance fees for this debt. That row will only populate if earned performance fees have been paid.

Enter a new offer amount in the “Offer Amount” field. Under the Payment Schedule section (see the middle of the image below), enter the payment start date and the number of payments to be made. In addition, determine if you wish to customize the fee schedule or if the system is to automatically schedule them.

Once you add the Start Date and Number of Payments, if you scroll down to the Performance Fee Schedule (see below), the dollar amount listed will be the total earned performance fees for this individual account, which should total $1,899.90 of this $10,500 original balance.

To turn this new feature on and off, go to the Admin tab and click "Settings" in the Navigation Bar.

You will now see an EPF fee control toggle at the bottom of the "General" section of the Settings page.

By un-selecting this checkbox, the earned performance fee schedule will revert to how it was before this feature's rollout. That will allow you to collect the total earned performance fees for debt every time the debt is settled, even if it's been voided in the past.

Back to top

Article Version History: 

For more information, email us at Support@setforth.com.