How Are Deposits Managed and Applied to Settlement Payments in Client Success?
Understanding how deposits are managed and applied to settlement payments is crucial for effectively navigating your Client Success program. This article explains the processes for single and multiple deposit options, as well as additional deposit requirements.
Understanding Single and Multiple Deposit Options
How Are Payments Handled When I Choose the Several Deposit Option?
When you select the several deposit option, payments will first use the funds already accumulated in your account. Once those funds are depleted, additional scheduled payments will be automatically drafted based on the settlement plan.
Where Are Payments Drafted From for Multiple Deposit Schedules?
For scheduled multiple deposit payments, after existing funds are used, payments will be drafted directly from your checking account according to the designated schedule. This draft is separate from your regular program draft.
How Do Multiple Deposits Relate to the Settlement Payment Schedule?
When your dedicated account balance is insufficient to cover upcoming settlement installments, a suggested deposit schedule is used to ensure enough funds are available by each installment due date. These deposits are timed to build the balance ahead of the creditor’s payment dates and do not alter the creditor’s installment amounts.
Does Selecting Multiple Deposits Change My Listed Monthly Settlement Payments?
No, selecting multiple deposits does not change the listed monthly settlement payments. The higher figure shown under "Make Several Deposits" reflects the total additional funds you need to deposit upfront to start those settlements; it does not replace or increase the listed monthly settlement payments.
How Are Deposit Amounts Determined When I Select Make Several Deposits?
When you click "Make Several Deposits," the system automatically divides the total additional draft needed into smaller deposits. You do not need to enter custom split amounts to create the installment plan.
How Are Additional Deposits Distributed Among My Outstanding Settlements?
Additional deposits are added to your global balance, which is then used to make payments according to each settlement agreement. If the funds are sufficient to pay a creditor in full, a payoff request can be submitted for that creditor.
What Happens If I Choose the ‘Several Deposits’ Option for Required Additional Funds?
Selecting several deposits sets up split payments over multiple months. You must ensure you can commit to each scheduled deposit without missing or changing them once accepted.
How Is the Additional Amount Paid When I Choose the Several Deposits Option?
When you choose the “Several Deposits” option, the additional amount is paid as separate deposits on a monthly schedule (e.g., $401 each month on or before the listed dates).
Do I Need to Keep Making Drafts Until the Entire Original Balance Is Paid Off?
No, the additional deposits are to support the settlement for that account. Once the settlement terms are funded and payments to the creditor are completed under the settlement, you don’t need to finish paying the original balance to receive the settlement.
Additional Deposit Requirements
Why Can’t a Specific Settled Account Be Paid Off Immediately?
Settlement payments must follow the agreed terms and your funding schedule across all accounts. To pay off a specific account sooner, you need to add additional funds on top of your regular drafts. Without extra funds, expediting one account risks leaving insufficient funds to continue scheduled payments for other settlements. You can add funds manually through your Client Portal under the My Draft tab by entering an amount and drafting date, then accepting the request.
Why Are Additional Deposits Sometimes Required for Settlement Offers?
Settlement offers must be fully supported by available funds in your program account to secure the agreement. If your current account balance is short of the settlement amount the creditor requires, the system may ask for an additional deposit to cover the difference. This doesn’t mean you’ve done anything wrong—it reflects the creditor’s requirement that sufficient funds be on hand to finalize the negotiated offer.
Conclusion
Understanding how deposits are managed and applied ensures you can effectively navigate your settlement payments. Whether you’re selecting single or multiple deposit options or addressing additional deposit requirements, the system is designed to help you meet your settlement goals efficiently.