Direct Pay Set Up - Firstsource Advantage

This document discusses the process that applies ONLY for Firstsource Advantage (FSA) settlements. 

The following provides an overview of the settlement negotiating process and describes the current procedures required to convert settlement payments from an existing payment type to Direct Pay (Click here to learn more about Direct Pay)

Overview:   

For normal ACH/Check by phone payment types, five (5) steps are involved in the negotiating process.   With Direct Pay, the last step, there is no longer a need to call creditors to set up scheduled payments.

🔺For all FSA settlements, please inform your team not to call in payments as they can cause duplicate payments with this creditor.

🔺 FSA is a multi-payee credit/collection firm. Selecting the correct payee account when completing the settlement setup is important. If you are unsure which account to select, please contact your FSA contact for confirmation.

Scheduling Settlements:

For Direct Pay payments, the information filled out in the Creditor Payee Details section is significantly changed. Once you have selected the payment method under the payment terms as direct pay, the CREDITOR PAYEE DETAILS section (left-hand side of the screen) updates with Direct Pay Details.

Please copy the Firstsource Advantage OUR ACCOUNT number exactly as listed on the settlement letter agreement to ensure the proper consumer’s account is credited when paid. Please note the purple arrow showing the specific info that should be copied to the creditor reference field. Do not include the consumer’s name in parenthesis, append the reference field with words like File # or Account#, or shorten the reference number field. Failure to adhere to this process may delay or cause the payment file to fail and require manual intervention.  Payments could be lost and shown as UNPAID.

Please double-check that the entries are correct before saving the settlement.

MULTIPLE PAYEES

Currently, FSA has six (6) dedicated payee accounts. Please note the original creditor to select the appropriate payee.

Payee Selection Guidelines

1. Typically, the original creditor should be the account you select, e.g., BOA; please select Bank of America/BOA as the payee.  
2. GEM is General Electric (GE) Money or Synchrony accounts.  e.g., TJ Maxx and other retail stores, excluding Walmart or Target.
3. Bank of America (BOA) begins with a 5 in the reference #.
4. Walmart is represented by Capital One.  
5. Target is represented by TD Bank
6. Note: Capital One (CAP) and 1st Party Digital Capital One (COF) are two separate trust accounts. If you are unsure which to choose, please contact your Firstsource Advantage representative to clarify.

Settlement Payment Decisions:

NOTE: FSA settlements set up as Direct Pay are no longer viewable on the Decisions Page.

Why? 

Forth will send funds to creditors based on the process date for FSA settlements, eliminating your daily task of approving each settlement payment. Furthermore, settlement payments will be paid only if the consumer has sufficient funds in their special purpose account. Any shortage in funds will result in the transaction remaining in Low Balance status until funds are available or advanced to the client.  

What about low-balance accounts?   How do I advance if the decisions page is gone?

To help you manage this, Forth has created reports that enable you to make advances to address these exceptions.

Forth Reports:

1. Uncollected Settlements - lists all uncollected/unpaid settlements in pending, shipped, or low balance status. (Click here to learn more)
   
   
2. Low Balance Forecast Report - list all potential low balance accounts up to 2 weeks out.  Features an advance button to facilitate on-the-fly account adjustments. (Click here to learn more)

At the beginning of each month,  FSA will send you its own Uncollected Debt Payments report. It will STILL be your responsibility to review these reports and manage these missing or late payments directly with Firstsource Advantage.  

Questions:

Should you have any questions about this process or need further information, feel free to contact us at settlements@setforth.com.

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