How to Use Creditor Standardization

This article describes how to use FORTH’s Creditor Standardization feature. It is organized into the following sections:

• Overview
• How to Use
  • 1. Settlement Offer with ACH Debit / Check by Phone
  • 2. Settlement Offer with Direct Pay Payment
  • 3. Settlement Offer with Check Mailing
  • 4. Settlement Offer with Bank Wire Payment
  • 5. Modify Settlements Already Completed Scenario
    • Bulk Updates
    • Individual Updates
• Assistance

Overview

FORTH’s Creditor Standardization feature ensures your settlement payments are sent to verified, accurate locations. By integrating with trusted sources, like the United States Postal Service (USPS), the system validates creditor addresses automatically. This prevents payment delays caused by outdated or incorrect information.

How to Use

This feature adapts based on the payment method you choose. Below are common payment method scenarios for managing standardized creditor data.

1. Settlement Offer with ACH Debit / Check by Phone

Use this workflow when creating a new settlement offer for a client.

1. Navigate to the Debt: Go to Contacts Tab > Select a Client > Client Dashboard > Debts subtab. Click the Handshake icon as shown below.
   
2. Create the Offer: Click the Create One link to create a new offer. 
   
3. Enter Terms: On the Settlement Offer page, enter your terms (e.g., enter "40" in the Offer % field.
   
4. Set Date: Scroll down to the Payment Schedule section, and select a Start Date (see highlight on the left side of the image below). 
   
5. Choose Method: Check that the Method column is set to ACH Debit / Check by Phone.

NOTE: The settlement payment method determines which fields appear in the next steps. 

6. Select the Creditor: After the Settlement Terms are configured, click the Payment Information tab. Under Payee Check Information, select a name from the "Forth Pay Creditor" dropdown menu.
   

• Search Tip: You can type the name to filter the list.
• Missing Creditor? Click +Add New Creditor to manually enter their details, (i.e., Name and Type (see image below). After selecting the FORTH Pay Creditor, you can specify who it is payable to.
  

2. Settlement Offer with Direct Pay Payment

1. If you return to the Offer Terms tab and change the (Payment) Method to Direct Pay, the Payment Information tab will now allow you to choose from a list of approved Direct Pay Payees managed by FORTH Pay.
   

The Direct Pay Payee dropdown menu pulls the associated direct pay payee for that creditor. If multiple payees exist for that creditor, they are displayed separately: CREDITORNAME - LAST 4 ACCOUNT NUMBER.

3. Settlement Offer with Check Mailing

Standardization is most critical when mailing physical checks to ensure they reach the correct processing center. 

1. Change Method: Set the (Payment) Method dropdown option to Check on the Offer Terms tab.
   
2. Select Address: On the the Payment Information tab, select a FORTH Pay creditor from the dropdown menu shown below as Item #1, and then select the correct mailing address from the list (item #2 in the image below). Addresses will show one of following statuses:
   • Approved: Verified and ready for use.
   • In-Review: Currently being checked by a FORTH Pay agent.
     

REMINDER: When a creditor or address is not in the system, authorized users can enter custom information at the time of settlement.

3. Add New Address: If the required address is not listed, click +Add New Address shown in Item #2 above. Complete the information requested in the Add an Address popup.
   • Validation: The system uses USPS data to verify the address. If the address cannot be found or is incomplete, the system will prevent you from saving to ensure data accuracy.
   • Verification: New addresses are marked In-Review until a FORTH Pay team member confirms them. You can still use the address while it is in review.

NOTE: When adding or editing creditors, duplicate creditor names are not allowed. 
For information on adding creditors to the FORTH system, see our Help Center Article.

Additionally, the creditor management system will send email notifications to DRSPs as well as notifications to DRSP users in the Notification Center whenever creditor information is updated or added.

4. Settlement Offer with Bank Wire Payment

When sending a Bank Wire, the standardization feature focuses on the recipient's banking details and not a physical mailing address.

1. Select Method: Under the Method column, select Bank Wire from the dropdown menu.
   
2. Enter Details: Navigate to the Payment Information tab.
3. Manual Entry: You must manually type the routing and account information in the Wire Information section. Because wires are direct bank transfers, you are responsible for the accuracy of these fields.
   

5. Modify Settlements Already Completed Scenario

For our last scenario, you can update creditor information even after a settlement is finalized, either individually or in bulk.

Bulk Updates

1. Click the Enrollments Tab, and then select the Customer by clicking the right-facing arrow at the far right of the row (highlighted by a red arrow in the image below).
   

2. Select Adjust Payments from the navigation bar.
   

3. In the Settlement Payments tab (see image below), select the Creditor from the Creditor dropdown menu. If the method involves mailing, you can select or add a verified address here.
   

4. Click Save Changes in the navigation bar.
   

Individual Updates

Like on the Settlement Offer page, newly created creditors must have their address verified, and then will go through a FORTH Pay Approval process.

1. On the Enrollment Details page, scroll to the table at the bottom of the page to find a specific transaction.
   
2. Click the blue Edit (pencil) icon on the far right.
3. Update the Payment Method, Creditor or Address as needed.
   
4. If the payment method is DirectPay, a Direct Payee option appears, allowing for an associated payee of the creditor to be selected.
   
5. Select Save Changes from the Action dropdown menu, and then click Save when you are finished.

Assistance

If you have any questions about this feature, please contact us at support@setforth.com.

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