B&B online Credit Management Procedures The following procedures are to be used for all B&B online customers who are overdue in paying their accounts. Account types Account No Description Comment 001 Premium Accounts High spend customers 002 Corporate Accounts Companies, Pty Ltd, etc. 003 Risk Accounts Continual bad payers 004 Priority Accounts Low spend customers NB: Anything under $30.00 is not pursued beyond the original invoice and is merely carried forward to the next billing run. Account status Status Description 201 Active 301 Bankrupt 401 Overdue bill 501 Not used 601 Account with collection agency 701 Suspected fraud Live account progression Account type Account types Account types 001, 002 003 & 004 Bill issued Day 1 Day 1 Bill received Day 6 Day 6 Due date Day 30 Day 14 Overdue Notice issued Day 35 Day 25 Courtesy call Day 60 Day 45 Cancellation of service Day 90 Day 65 Debt recovery progression Account types Arrears Cancellation Customer request cancellation Cancel all services Day 90 Day 90 Send Letter of Demand Day 106 Day 106 Contact legal representative Day 120 Day 120 Transfer to collection agency Day 140 Day 140 Default added with credit agency Day 141 Day 141 Initial Credit Contact It is imperative that all accounts highlighted for action are investigated on a daily basis. Accounts will continue to highlight to an operator until action is taken. When a customer’s account highlights for action, the customer will need to be contacted to arrange payment. When speaking to the customer advise them of the: Full amount of their arrears Amount of the administration fee that will apply if they are cancelled. The outcome from your telephone conversation will be one of the following: 1. You are unable to contact the customer 2. The customer will make a promise to pay 3. The customer will provide receipt details 4. The customer will make an extended payment arrangement The steps you follow will be dependent on the above outcome. The correct option should be followed as outlined in the following pages. If the customer has made a promise to pay Access the customer’s account and add notes indicating the arrangement made. Record detailed notes including the: amount to be paid date payment is to be made method of payment. Taking bookings for customers in default No customer who has an outstanding bill of more than $30 is allowed to use their line of credit for further bookings until all outstanding amounts have been paid in full. This is based on actual payment and not just a promise to pay. All CSO’s must refer booking requests above $1000 and/or for customers in arrears >60 days, to their Team Leaders for authorisation. All bookings for customers in default must have the following conditions: 1. Customers must pay 50% of their total accommodation and booking costs prior to their stay at the B&B. 2. This payment must be made by either cash or card 3. The customer is to be informed of this decision when they make any booking, until all arrears are paid in full. 4. CSOs must email their team leaders with details of any bookings outside of their discretion to approve. They should make a recommendation with this email. 5. Bookings may be denied to some customers in default. Team leaders alone make this decision within their discretion. 6. No booking can be made to any customer who is >90 days in arrears. Payment terms When an account is overdue, special payment terms may be required until the debt is cleared. These terms can be negotiated, but cannot exceed 30 days in length. Once an account is 90 days overdue then debt recovery action must be started (65 days for risk accounts). A payment plan cannot take payments beyond the time when debt recovery is to be started. Two types of payments can be accepted: One single payment Multiple payments (not to exceed five separate payments). There should never be longer than 30 days between payments and they should be spread as evenly as possible until cleared. Try to avoid: Customers making a single payment close to the debt recovery period. A multiple payment plan that has most of the amount owing being paid later in the plan. Try to ensure the payments are as even as possible. When any type of payment plan is agreed to, firm dates must be established for each (or the only) payment. These dates must be recorded on the system and tracked to ensure they are made. Note that in certain cases, a customer can be asked to clear an overdue amount within 14 days. This option can be used when: The overdue amount is under $1000 The account has been overdue for longer than 60 days. Factors to consider All operators are expected to take into account the volume of customer business and their net worth to B&B online when making a payment decision. If you are unsure about making a decision on any particular customer, you should refer the matter to the Senior Team Leader Credit. Other criteria to consider in this regard include: The length of time the customer has been with B&B online Previous payment history Whether any cheques have been dishonoured in the past. Cancellation of service Once a customer has reached 90 days in arrears then all services must be cancelled. There are no exceptions to this rule. A note is to be added to the account that no further bookings are to be taken. Any existing bookings taken prior to this date will be honoured. Debt recovery procedures Refer to the debt recovery progression chart for the days when appropriate action must be taken. Once an account reaches the debt recovery stage, they must follow the correct times for action. There is NO discretion to move from these timelines for any customer. Once a customer is in the debt recovery stage, they may make repayments to their debt, however action will only be stopped if the debt is paid in full. Action cannot be suspended for a part payment. If a customer does clear the amount during the debt recovery period then normal service is not to be resumed straight away. All such accounts must be referred to the Senior Team Leader Credit for special review. Remember to note action taken on an account during each stage of this process.
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