We have 3 parts to our credit management
Every person in Australia has a credit history report. Various agencies can add info (both bad and good). The customer can order a report of this from Equifax if they wish. Most companies that want to provide the customer with some sort of credit (EG: Post-paid service, Credit card, loan, etc.) will do a check with Equifax first to see if the customer is a risk. All checks are noted on the file.
When we send a bad debt notification (default) to Equifax, this is the absolute last resort as we have tried all ways to get the funds back. Once listed, the customer can’t be ‘unlisted’. If the customer pays back the debt after being listed with Equifax, we can just advise Equifax that the debt was paid back. This will not remove their Default listing (just mark it as paid). This is a super important note as we need to make sure the expectation is set to our customer.
In station, note the account status, also note that the balance is $0:
Go to invoice and you will see the last amount in credit this means that we have already submitted the amount to Equifax (formerly known as Veda Advantage) as we have written off the debt
Once the debt is written off and the customer has been defaulted, reps must give the customer SpinTel’s bank details. Customers must pay through this method so that the payment is properly accounted for/applied by the credit department.
The very reason why reps will not process the payment is because if they do, it will put unnecessary credit to the account since the balance is zero (as it has been written off).
On the other hand, if customer pays to the SpinTel’s bank account, credit team will note the account as paid. If customer wants to make a partial payment, the customer can deposit it to the same bank account, credit team will make a note as to how much is the remainder that the customer needs to pay.
At no point reps will refer the customer to Equifax since it does not process any payments on behalf of a company. When the account is defaulted the 10% Milton Graham (formerly knwon as D&B) commission may or may not apply. Debts usually stays active with Milton Graham for year, if already closed with Milton Graham, commission is no longer charged. Carmen can check in Milton Graham’s site to confirm if the commission is still going to be charged.
When the customer pays a debt that has already been defaulted, Credit team can request Equifax to mark the account as paid instantly for as long as the Equifax reference number is available in the default. If this reference number not available, it normally takes 5-7 working days after the payment.
Generally, defaults stays with Equifax between 5 to 7 years (although a company can default a customer for the duration of up to 12 years). SpinTel defaults stays in Veda’s system for 5 years.
Defaults will not be removed as soon as the customer pays, it will just be marked down as ‘Paid’ in Equifax’s system.
The account balance is $0, does the customer really have to pay us?
The customer can obtain a copy of their credit file for free.
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