Evaluation of promises to pay
In Pega Collections, different customers can have different sets of business logic determine if their promise to pay is kept or broken. For example, you can specify that a customer who promises to pay $50 on Friday but then pays only $47 that day does not break their promise. By defining the kept promise business logic to allow some underpayment, you give your customers additional flexibility in meeting their contractual obligations.
Grace period
When assessing if a promise is kept or broken, two values are significant: the value of the payment and the due date.
Extending the due date with a grace period is a common practice.
Grace period is an additional number of days that the business adds to the promise date to extend the evaluation of the promise.
The evaluation process
When Pega Collections™ evaluates the customer's promise as kept or broken, business rules determine the next steps in the collections process.
The following diagram shows all the stages of the evaluation.
As outlined in the diagram, if the promise is part of a multi-part plan, then Pega Collections assesses if another promise is pending, in which case the system continues to monitor the case. If the arrears balance is paid in full (PIF) at the due date, then the system assesses the case against exit logic. If the customer paid what they promised but arrears still remain on the account, the business defines the follow up action. Some businesses only assess the case by its current days past due and cycle back the case into collections treatment. Alternatively, they may decide to create a specific treatment path for part-payment cases in which a commitment has been paid, but arrears remain.
These cases can also be training or policy opportunities that ensure that collectors do not set promises that do not clear all the arrears on an account.
Broken promise policies
Whenever a promise is broken, you can define a broken promise strategy, including the use of follow up letters, emails, and phone calls. You can also decide to route back these cases to the previous treatment strategy.
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