How Creditor Account Changes Impact Your Draft Payments
When making adjustments to creditor accounts within the Client Success program—such as removing or adding accounts—your draft payment amount may change based on your updated financial arrangements. This article outlines how these changes are calculated, the typical processes involved, and what you can expect moving forward.
Draft Recalculations After Removing a Creditor
Impact on Biweekly or Monthly Drafts If you remove a creditor from the program, your draft amount is often recalculated to align with the remaining balances in your program. For example, after removing a creditor like Capital One, your biweekly payments may decrease significantly according to adjusted schedules.
Effective Changes The recalculated draft amount typically becomes effective by your next draft processing date. For example, a new monthly draft amount of $68 could take effect starting from a specific date, with potential changes to your repayment term as well.
Exception: Active Settlement Agreements If you have active settlement agreements in place, removing a creditor may not result in an immediate change to your draft payments. In this scenario, the prior draft schedule continues as-is until further changes are requested.
Adding a New Creditor to Your Program
When adding a new creditor, your draft amount will be recalculated to reflect the new account. For instance, adding a Lending Club account may result in an increase to a specific biweekly or monthly payment amount. Adjustments can be further modified upon request.
Keeping Your Draft Payments the Same
If you prefer to maintain your current draft amount despite removing a creditor, you can request no changes. The draft amount will then remain at the pre-existing level starting from the subsequent scheduled date.
Timing and Processing of Draft Amount Updates
Changes to your draft amount, whether due to creditor removal, addition, or settlement, typically require up to 24 hours to process. Once processed, you can review the updated draft information in your portal by the end of the day.
Additional Payments and Their Impact
If you’ve made one-time settlement payments, such as a $1,308 payment to secure a settlement, your regular monthly draft schedule will resume afterward. For instance, after a settlement payment, a prior amount like $354.44 might continue as your monthly draft moving forward. Additional draft payments unrelated to settlements, such as extra contributions of $171.50, typically remain separate and are not included in standard draft adjustments.
Steps to Confirm Draft Adjustments
To finalize any adjustments to your draft amount—including recalculations from creditor removals or additions—you'll need to confirm these changes in the program. Typically, this happens by agreeing to the new terms and confirming updates via your portal. Clear instructions will generally be provided alongside any requested changes that impact your draft.