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Overdue Payments

Arrears in Simfuni are triggered by failed payments and are independent of billing dates. Rather than waiting until the end of the billing cycle to see if a payment comes in, Simfuni will start the arrears process as soon as a payment fails. 

Once the Simfuni system receives confirmation that the payment failed (this may be overnight if the policy is paid by direct debit, or a few days later if paid by direct credit) then the arrears process is triggered, and:

  • The policy status is changed to overdue.
  • The number of days past due is set to 1.
  • The failed instalment amount is rescheduled according to the rules of payment reattempts/rescheduling set by your organization.
  • Any configured missed payment communications are generated.

Each day that goes by without a successful payment will increase the days past due counter by 1, until it reaches the number of days past due where an automatic cancellation is triggered.

 

For example, for a policy with the following details:

  • Policy billing date 28th November
  • Policy paid until date 27th December (the day before it next gets billed)
  • Policy payment date 4th December - by direct debit
  • Payment frequency – monthly

The arrears process would be triggered on the 5th December (when the direct debit file comes back from the bank with a dishonoured reason). The days past due would be 1 and the policy paid until date would remain as the 27th December.

 

If the policy is paid by internet banking (i.e. automatic payment or direct credit) instead of direct debit or credit card, then the arrears process is the same but triggered slightly later. In that case the system will wait a few extra days (typically 3 days, but the number is configurable as per your organization's requirements) with the expected payment set as 'pending', to allow a grace period in case there's a quarantined payment in the Match Payments screen that needs to be manually reconciled. If no payments are allocated within those grace days then the arrears process will be triggered and the policy will display as overdue.

 

For example, for a policy with the following details:

  • Policy billing date 28th November
  • Policy paid until date 27th December (the day before it next gets billed)
  • Policy payment date 4th December - by automatic payment
  • Payment Frequency – monthly
  • Number of 'grace' days allowed by organization - 3 

The arrears process would be triggered on the 8th December (if there was still no payment found and allocated). The days past due would be 4 and the policy paid until date would remain the 27th December.