Automatic Assignment of Loans to Collection Agencies [] FS, ES [] MS

Automatic or manual placement of loans with a collection agency or agencies is up to you. With automatic placement, you can select the number of days past due that triggers placement and accelerate loans based on agency code or number of days past due.

• Automatic Placement - When loans become 120 days past due*, they are coded automatically for collection with the agency or agencies you select. These loans will appear on the weekly New Placements Report for each agency (with one copy going to the institution). If an institution is using more than one agency, loans placement is rotated in equal numbers to each agency.

• Manual Placement - When your loans become 120 days past due*, they are automatically coded as being eligible for collection and are reported as such in the appropriate section of the Past Due Loans Report sent to your institution. If your institution decides to place these loans with a collection agency, you should send us this list of loans using the Collection Processing Transaction Transmittal. They will be coded for release to your agency or agencies via the New Placements Report, which is generated weekly for each agency (with a copy going to the institution).

*The number of days past due a loan must be before it goes into collection (whether the institution uses Automatic Placement or Manual Placement) is your choice.