Gap Payment Process

Gap Payment Process

Gap Payments are calculated when there is a cancellation, pending cancellation, reinstatement, or renewal. The payment is used to collect funds when payments are missed due to:
  1. Refinance
  2. Home Paid Off
  3. Service Transfer/Client Change
  4. Billing Mechanism Changed
  5. Upsell/Downsell
  6. CC/ACH/DDA Rejection
  7. Billing Date Change (Customer Request)
  8. Renewal
  9. Reinstatement
  10. Non-Payment Balance Due
  11. Billing Vehicle No Longer Available
  12. Unpaid Options/Additions

Guidelines

Gap Payments must be collected BEFORE renewing or reinstating a contract.
If there is a gap due and the customer wants to cancel their contract, customer service agents must transfer the customer to Retention or Cinch Real Estate.
Standard retention efforts are required when an opportunity is present.

Calculating A Gap Payment

  1. On the Enrollment Form screen, identify:
    1. The Effective Date (in the Eff Date field).
      1. The Effective Date is usually 30 days past the Enrollment Date.
    2. Whether the account is Current or Past Due (in the Billing Status field).

  2. Click Menu Options, then select Billing to open the Billing Details.
  3. Identify the Bill Date, Bill Amount, and Gap Amount.
  4. Click Exit to close screen.

  5. Back on the Enrollment screen, click Payment. The Make A Selection pop-up will display.
  6. Click the drop-down arrow and select View Payment Plan/Billing Mechanism or Update Payment Plan/Billing Mechanism, then click OK.

  7. The Payment View screen will display.
  8. Ask the customer to confirm the payment method that should be on file. Update as needed BEFORE collecting the Gap Payment, then click Payment History.

  9. The Payment Preview screen will display. Click Payment Preview to view the full history of the payments across the life of the contract.
    1. If the contract is older than 12 months, ensure all payments were made over that period. Look for any missing or partial payments.
    2. If the contract is billed through a Title Company, it could be delayed up to 90 days after the Effective Date.
    3. If the contract is billed through a Mortgage Company, it could be delayed between 90-120 days after the Effective Date.

  10. Identify if the contract is billed through ACH, DDA, Credit/Debit Card or if it’s billed through a Mortgage or Title Company.
    1. If ACH, DDA, or Credit/Debit Card:
      1. Calculate the time between the Effective Date and the Current Date.
        1. This is used to determine the Gap Payment owed.
      2. Confirm the total number of payments is equal to what would be 12 equal payments up to that point.
        1. This amount is usually displayed in the Gap Amt field on the Billing Detail screen.
      3. Example: Customers Effective Date is 7/1/2023 and we have payments up until 5/1/2024. There are 2 payments left to be made for the 12-month billing cycle (gap payment). We would need to collect those 2 payments before reinstating the contract.
    2. If Mortgage or Title Company:
      1. Calculate the time between the First Bill Date and the Current Date.
        1. This is used to determine the Gap Payment owed.
      2. Confirm the total number of payments is equal to what would be 12 equal payments up to that point.
      3. Example: Customers First Bill Date is 7/1/2023 and we have payments up until 5/1/2024. There are 2 payments left to be made for the 12-month billing cycle (gap payment). We would need to collect those 2 payments before reinstating the contract.

Noncash Request

Mortgage Payments are billed in arrears and may be delayed. This delay must also be factored into the calculation. Sometimes it may be necessary to submit a request to A/R to noncash the gap amount.

If the past due payments are beyond 12 months, in this case, the customers account status should reflect current, therefore a QuickBase Billing follow up should be submitted.
  1. Example: Customers Effective Date is 7/1/2023 and we have all payments current (12 months to current date) and the system shows a gap amount due. The gap amount is inaccurate.
  2. In the comments field of the QuickBase request enter: (12 payments received on the account. Please noncash <Amount>).
If a gap amount is identified, Process A One-Time Payment.

Use the Note Template to enter notes in the Communication History Log. Ensure the REASON DETAILS field specifies the one-time payment amount is being made for a gap payment.

Example

Caller:

Customers full first and last name

Reason for Call:

Billing

Reason Details:

Customer wants to <renew, reinstate, pay past due amount>

Action Taken:

Reviewed billing status, took payment, informed customer of next bill date and amount

Sales Details:

N/A

PYMT Details:

Include the amount of the payment, if it was a full or partial payment, and the authorization number

Sales Scripting Completed:

N/A

ROD:

Yes if there is a new payment method being saved, Down if the system is not working, No if no new payment information is being saved

CC/ACH Scripting Completed:

Read through script if new payment method is being saved, otherwise N/A

CTI:

Yes if CTI identified the caller, No if CTI did not identify the caller, Down if CTI is not working

Click Save on the toolbar, click Yes to confirm changes, and Exit in the pop-ups to close.

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