PDA Matters

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PDA Matters

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·As part of the Debt Counselling process, it is very important to manage the collection and distribution process.

·To do so effectively, the collection and distribution instructions (Debt Review repayment plans) need to be communicated to Hyphen PDA. This is done by uploading a debt review repayment plan to the PDA.

·Additionally, any action that Hyphen PDA takes with the plans (collecting and distributing) needs to be communicated back to Simplicity - this is done via the Hyphen PDA download function.

·The focus of these sections will be on how to upload a plan to Hyphen PDA, how to download information back from Hyphen PDA and how to use the client status column on Simplicity in order to keep the plans on Simplicity and Hyphen PDA exactly the same (in sync). Being out of sync could have some severe consequences since decisions could be taken by the Debt Counsellor based on faulty information.

Click on the following headings to expand:

 

Minus18Channels

·Hyphen PDA uses two primary channels to collect funds from Consumers in order to distribute these funds to creditors and to meet the obligations of the plan.

·These channels are:

 

Minus18Debit pull channel

oDebit pull is one of the channels that are used by Hyphen, Debit pull happens when Hyphen pulls the money from the consumers account to the PDA's Trust Account.

oDebit Pull has two primary products:

 

      Minus18Debit Orders

oDebit Orders are payment instructions by the Consumer to the PDA authorizing the withdrawal of funds from the Consumer's bank account in order to pay the debt review instalment.

oA debit order mandate is signed by the Consumer authorising  the PDA to collect money form account-holders bank account and this must be maintained by the Debt Counsellor at all times.

oShould the mandate not be available when called for, the Debt Counsellor could be liable for the full instalment should the Consumer decide to dispute or reverse the transaction.

oA debit order mandate authorizes a payment on the action date of the debt review plan.

oDebit orders can debited at any time during the course of the day from a Consumers account.

oCollections are permitted up to R 500 000.

oDebit orders can be reversed / disputed.

oCredit providers are paid within 5 business days after a successful collection and Debt Counsellors' fees are paid within 5 business days in respect of Debit Orders (1 business day in respect of Naedo collections).

       

      Minus18NAEDO

oNaedo is a non-authenticated early debit order and the primary differences from a Debit Order is that it is a priority payment (it has payment priority over an ordinary Debit Order) and secondly, it has the ability to track for funds over a number of days.

oCollections may be made up to a value of R 30 000.00 using Naedo.

oA Naedo mandate is signed by the Consumer authorising the PDA to collect the debt review instalment from the account-holders bank account.

oA Naedo debit order mandate authorizes the collection of money on the debt review action date.

oNaedo debit orders are collected shortly after midnight, following any batch salary runs at BankServe Africa.

oNaedo debit orders can be reversed / disputed.

oCredit Providers are paid within 5 business days after a successful collection and Debt Counsellors are paid within 1 business day once a successful collection notification is received by the PDA.

oNAEDO offers a tracking feature in that the debtor's account is tracked and the moment a deposit reflects, the collection is presented for payment.    

Minus18Credit Push Transactions

oCredit Push is another collection channel that is used by Hyphen PDA; Credit Push happens when the Consumer pushes the money into Hyphen PDA's Trust Account.

oThe following products fall within the Credit Push channel; Electronic Funds Transfers (EFT's), Stop Orders, Cash and Aedo/Paedo.

 

Minus18Eft's

oEFT's are the electronic funds transfer of money from the Consumer's bank account to the Trust Account of the PDA.

oThe Debt Counsellor and Credit Providers are paid within 24 hours of the PDA receiving the funds.

oUnlike Debit Orders and Naedo, EFT's can't be reversed.

 

Minus18Stop Orders

oConsumer signs an instruction with their bank requesting money to be automatically paid from the Consumer’s bank account to Hyphen PDA’s Trust Account.

 

Minus18Cash

oCash can be paid into the Trust Account of Hyphen PDA at any FNB branch. It is imperative that the Identity Number of the Consumer, which is used as a reference, exactly matches that of the debt review plan loaded at Hyphen PDA.

 

 

Minus18Suspensions

oSuspensions at Hyphen PDA happen when a Debt Counsellor uploads a debt review plan to Hyphen PDA and the Credit Provider reference did not validate successfully at Hyphen PDA according to the approved validation rules provided by the major banks.

oHyphen PDA will then suspend the money since payment cannot be made to a Credit Provider against an irregular reference number. The Debt Counsellor then has a period of 30 days to remedy the reference number, failing which the suspended item will be reallocated proportionally to the remaining Credit Providers in the plan.

oIf the Credit Provider reference subsequently validates successfully, the money will then be distributed by the PDA to the Credit Provider.

 

Minus18Exchanging data with Hyphen PDA - UPLOADS and DOWNLOADS

·Any changes and actions that happens at Hyphen must be communicated to Simplicity.

·The user can upload a client to Hyphen by using Simplicity.

 

Minus18Hyphen Download

oSince Simplicity is not an online program any changes that you make or any actions taken by Hyphen needs to be communicated, to keep track of these changes Simplicity has status that track if anything changes between the plan at Hyphen and the plan on Simplicity.

oThe Hyphen download allows the user to download the processes from Hyphen.

oThe user must download from Hyphen, to receive any changes that was made to any of the processes in Simplicity.

oIf the user gets an error on the Hyphen download the user must download again from Hyphen, if the error persists the user can call Bitech Systems.

ØHyphen Download

Minus18How to upload a client to Hyphen

oA Consumer's record, as well as the debt review plan, must be uploaded to Hyphen PDA.

oThis should also be done if any changes are made to the Consumer's record or plan. Hyphen PDA must receive the very latest information available, otherwise there could be a discrepancy between the data on Simplicity and Hyphen PDA, which could have serious consequences.

oA Consumer's record, as well as the debt review plan, must be uploaded to Hyphen PDA.

oThis should also be done if any changes are made to the Consumer's record or plan. Hyphen PDA must receive the very latest information available, otherwise there could be a discrepancy between the data on Simplicity and Hyphen PDA, which could have serious consequences.

oBefore uploading the Consumer and the Consumer's payment plan to the PDA, the User must examine the plan very carefully to ensure that the information and repayments per Credit Provider are accurate.

o If not correct, this could have some very negative consequences; for example, the action date might be incorrect, the incorrect Credit Providers might be paid etc.

oThis could lead to the termination of the Consumer by the Credit Provider and there could be a claim on the Debt Counsellor in this event.

oThe PDA will then execute the plan according to instruction.

ØHow to Upload

Minus18Hyphen PDA Download

oThe Hyphen PDA download process allows the User to download all the transactions executed by Hyphen PDA during the course of the previous day. In other words, this is the "answer-back" to instructions given by the Debt Counsellor to Hyphen PDA.

oTypically, the download of messages will contain extremely important information such as unpaid or failed transactions, error messages, suspended items, details of when distributions were made to Credit Providers and so on.

oThe process of downloading this information is extremely simple but it is nevertheless one that is often overlooked - the result is that the Debt Counsellor's information is not the same as that held at the PDA with some possible unintended consequences.

oIf the User receives an error on the Hyphen PDA download (the download was interrupted for any reason), the User must of course repeat the process - if the error persists the User should contact Bitech Systems soonest.

ØHyphen Payment Messages

Minus18Hyphen Messages

oThe Hyphen messages allows the user to view messages that has failed or that have errors on the messages.

oThe user will receive all the failed message to and can view the details of these failed messages.

oThe user must view these messages after an upload to see the errors that cause the upload to receive the errors.

ØHyphen Messages

 

 

Minus18Hyphen Terminology

·Action Date: The date that money is expected to be paid via either deposit/EFT or Debit Order/NAEDO.

·Activate: To make the consumer and the payment plan active.

·Allocate: Assigning money to a specific period in the payment plan.

·Block: The prevention of allocating a deposit/EFT to a specific period within the payment plan.

·Bordereaux Report: A report which provides information about payments made.

·Complete Consumer Statement: A complete history of distributions made on behalf of the consumer from first action date.

·Credit Push: Money paid via direct deposit at an FNB branch, Electronic Funds Transfer (EFT), Cell phone and App payment, ATM payment or Stop Order.

·Credit Push Payee: A consumer who will make payment via the Credit Push payment channel.

·De-Activate: A temporary status of a consumer whilst preparing a new payment plan or pending investigation.

·Debit Order Mandate: A legal form signed by the consumer giving Hyphen Technology Pty Ltd authority to deduct money from the consumer’s bank account in respect of the Debt Review process.

·Debit Order Payee: A consumer who will make payment via Debit Pull payment channel.

·Debit Pull: A means of collecting an expected amount from the consumer’s bank account. Debit Pull includes both NAEDO and Debit Order collections.

·Deposit: Money paid into Hyphen PDA’s Trust Account by the consumer using one of the Credit Push payment channels.

·Dispute: A consumer who has logged a dispute against a debit order with their bank, money is immediately refunded back to the consumer and Hyphen PDA subsequently debited.

·Electronic Payee: Please see Credit Push Payee.

·Freeze: A status placed on the consumer’s payment plan to prevent future debit orders from collection and will prevent any Credit Push payments from being distributed according to the payment plan      until the Debt Counsellor advises Hyphen PDA to lift the status from the consumer.

·Inactive: A status of a consumer as a result of a “De-Activate” received from the Debt Counsellor or as a result of three consecutive unpaid months. An inactive status will not prevent allocation if a Credit Push payment is received.

·Notification of Payment: Hyphen does host-to-host distributions to Credit Providers and cannot provide bank deposit or transfer documents. The Notification of Payment provides full payment details made on behalf of the consumer to the said Credit Provider.

·Payment Plan: A repayment plan that consists of payments received from the consumer as well as the distribution detail made to a Credit Provider on behalf of the consumer.

·PDA: Payment Distribution Agent – Must not be used to refer to a payment plan, period or consumer.

·Period: Various instalments to be paid on behalf of a consumer.

·Periodic Consumer Statement: A period specific history of distributions made on behalf of the consumer as well as the following months expected.

·Re-Activate: To change a consumer’s status from Terminated to Inactive.

·Re-Allocate: To re-distribute suspended money to active Credit Providers on the payment plan. The re-allocation options exist: 1) Pro-Rata 2) Equally 3) Credit Provider specific.

·Re-Strike: To resubmit an unpaid debit order and/or NAEDO collection

·Refund: Suspended money to be returned to a consumer.

·Stop Order: Consumer signs a mandate with their bank giving permission for money to be automatically paid from the consumer’s bank to Hyphen PDA’s Trust Account.

·Strike:To action a collection from the consumer using one of the Debit Pull methods.

·Terminate: To be used when a consumer is no longer registered with their current Debt Counsellor. The Terminate status has no impact on a consumer’s Debt Review status.

·Terminated by DC: The Debt Counsellor changed the consumer’s status to “Terminate”.

·Terminated by Hyphen: Hyphen PDA changed the consumer’s status to “Terminate” due to five consecutive unpaid months or the consumer has disputed a Debit Pull collection and Hyphen PDA has suffered a loss as a result.

·Transfer: Money allocated to a payment plan cannot be transferred to another payment plan without manual intervention from Hyphen.