September 14, 2023 - Settlements module

Securely automate negotiations with debt settlement firms.

Network Members can now build rules engines that turbo-drive how they field, negotiate and document settlement agreements with traditional debt settlement firms.

Centralize fragmented negotiation channels, automate decisions with negotiation rulesets while reviewing proposals in bulk which rulesets can't auto-approve. eSign generated settlement agreements in-platform.

Dictate how consumer consents are gathered, ensure organizations follow consent guidelines and support counterparties with embedded tools to satisfy consent requirements.

Work with a broad ecosystem of debt settlement firms and accept or decline to work with existing firms. Invite new counterparties to quickly onboard to the Kredit network.

Recognize, understand and react to trends, analyze negotiation data to drive wholistic strategy and compare liquidation across portfolios and counterparties. Focus resources on investing in high value activities.

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HIGHLIGHTED IN TODAY'S RELEASE:

Consumers

How to manage consumer profiles

Proposals

How to manage proposals from counterparties

Rules

How to define rules that programmatically approve and reject proposals

Network

How to manage authorized parties you elect to engage

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HOW TO NAVIGATE THE CONSUMER DASHBOARD

As Advisors (debt settlement firms, credit counseling agencies and law firms) upload enrolled consumers to Kredit's application and initiate the negotiation process, consumer profiles will become available for Network Members to view and respond.

Navigate to the Consumers tab under the Settlements module.

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HOW TO SEARCH FOR CONSUMERS

Network Members can quickly locate specific consumer profiles without the need to navigate manually through an extensive list. Type consumer names or account number into the Search consumers field to find a specific consumer.

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HOW TO NAVIGATE CONSUMER PROFILES

Consumer profiles provide a comprehensive overview of consumer's information and account(s), highlighting key information relevant to the relationship.

VIEW CONSUMER PROFILES

Step 1: Click Details next to the respective consumer. Profiles that require action display a red dot.

CONSUMER PROFILE COMPONENTS

Network Members can use consumer profiles to find consumer details, negotiate, review settlement details, and see required consumer payments.

Personal details

Displayed at the top of the page is the consumer's personal details.

Accounts

Displayed under consumer's personal details are their settlement account(s). Account(s) that require action will display a red dot.

Click on the arrow to expand or collapse the account card. The expanded view shows the settlement progress tracker for each individual account.

Payments

The Payments section shows a ledger of required consumer payments specific to that consumer.

Documents

The Documents ledger lists collateral relevant to consumer's account(s). Click Add to upload a document or download documents generated during the negotiation process.

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HOW TO NAVIGATE THE SETTLEMENT PROGRESS TRACKER

The Settlement progress tracker illustrates the status of each account negotiation through the pipeline to a completed settlement agreement.

VIEW SETTLEMENT PROGRESS TRACKER

Every account negotiation goes through a structured flow which allows Network Members to track consumer consents and have a document trail for compliance tracking purposes.

PROPOSAL STATUSES

Status	Description
Open	Negotiations are ongoing
Active	A settlement has been agreed to but payments are not yet completed
Completed	The settlement agreement has been satisfied
Declined	The settlement has been declined

COMPLETE TASKS WITHIN THE SETTLEMENT PROGRESS TRACKER

Click the aligned button (see below) to complete a task. Once a task is completed, a download button will become available to save associated documentation.

Step 1: Authorization to communicate documents consumer consent for Advisors to communicate on behalf of the consumer.

Step 2: Account validation notice requests verification of the account balance.

Step 3: Settlement terms are the pre-approved offers a Network Member sets or which are proposed by an Advisor.

Step 4: Settlement documentation refers to the documents that outline and formalize the terms of the settlement agreement for records.

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HOW TO NAVIGATE ACCOUNT VIEW

The account view provides a comprehensive overview of a consumer account, highlighting key information relevant to the relationship. Network Members can use the account view to find account details, negotiate, review settlement agreement details, and see required consumer payments for this account.

ACCOUNT VIEW COMPONENTS

Within a consumer's profile, click Details to pull up an account profile.

Settlement progress tracker

Displayed at the top of the account view is the settlement progress tracker for that specific account. Network members can download files for their records when tasks are completed.

Account details

Displayed at the top of the account view is the Account details. Click Refresh to update account details.

Settlement details

Review the conditions of the agreement in the Settlement details section.

Payments

The Payments section show a ledger of required consumer payments specific to this account.

Documents

The Documents ledger lists collateral relevant to the account.

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HOW TO NAVIGATE THE PROPOSALS DASHBOARD

Network Members can manage the settlement plans submitted by Advisors in the Proposals section.

Navigate to the Proposals tab under the Settlements module.

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HOW TO REVIEW THE PROPOSALS DASHBOARD

The Proposals dashboard provides an at-a-glance view of proposal details in one central location. This transparency allows Network Members to easily track the progress of each proposal and understand its current status.

DASHBOARD COMPONENTS

Proposals header	Description
Advisor	Shows the associated Advisor
Status	Provides the status of the negotiation in the settlement progress tracker
Starting balance	Displays the original balance
Payments	Displays the count of total payments in the agreement Active proposals will show the count of completed payments over the count of total payments Open proposals will show the proposed total count of payments
Amount	Displays the recurring payment amount
Total	Displays the total balance to be paid by the consumer
Discount	Provides the discount rate (i.e the percent difference between the Starting balance and Total columns)
Auto-approved	Indicates that the rules engine approved the proposal that came in

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HOW TO FILTER PROPOSALS BY STATUS

Filtering proposals by status help Network Members prioritize actions based on which proposals are in need of immediate attention and manage workflow effectively, ensuring that proposals move smoothly through each stage.

TOGGLE PROPOSAL STATUS

Step 1: Toggle between various statuses to filter the list of proposals accordingly.

• All - All proposals regardless of the status.

• Open - Negotiations are ongoing.

• Active - The consumer is actively paying on the settlement.

• Completed - The consumer resolved the account.

• Declined - Network member did not accept the proposal.

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HOW TO REVIEW INDIVIDUAL PROPOSALS

Network Members can see a proposal view for more details on a proposal.

PROPOSALS WITH ACTIVE, COMPLETED OR DECLINED STATUS

Step 1: Click Details to see proposal information.

Step 2: Click View account to see details about the account. Click here to learn how to navigate account view. Or Click Close to return to the proposals dashboard.

PROPOSALS WITH OPEN STATUS

Step 1: Click Review on the proposal dashboard to take action on proposals with an open status.

Network Members can review the proposal details and chose to accept, reject or counter a proposal.

Step 2: Accept a proposal.

Click Accept to accept the proposal as it stands.

Step 3: Reject a proposal.

Click Reject to reject the proposal. The Advisor will be notified upon clicking Done, or Network Members can Propose a new settlement. See Step 4 to learn more on countering a proposal.

Step 4: Counter a proposal.

Step 5: Click Counter and Get started to edit proposal details.

Step 6: The proposed terms are displayed to easily enter updated parameters. Click Continue to progress with countered proposal.

Step 7: Review the counter proposal details before selecting Confirm.

Step 8: Successfully submitted proposals are delivered to Advisors. Unsuccessful submissions will prompt network members re-start the counter process.

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HOW TO MANAGE RULESETS

Network Members can define rules to programmatically approve and reject proposals.

Navigate to the Rules tab under the Settlements module.

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HOW TO CREATE RULESETS

Network Members can apply rules to portfolios that automate decision making, allowing team members to address proposals that rulesets cannot approve.

Step 1: Click Create ruleset to establish a new ruleset (collection of rules).

Step 2: Type in a name for the ruleset and select Continue to establish this ruleset.

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HOW TO CREATE RULES

Network Members can tailor settlement strategies by creating multiple rules within a ruleset. Rules provide flexible control over settlement rates, initial balances, and plan types (including one-time, regular installments, or custom series).

Step 1: Under My Rulesets, click View rules to create a rule.

Step 2: Click Create new rule to establish a new rule.

Step 3: Under Create a new Rule, Network Members can enter rule parameters. Click Activate rule to make a rule active.

• Rule Name - Title the rule to clearly communicate the focus or intent

• Minimum and maximum starting balance - Define the range of starting balances to which the rule will be applicable. Minimum and maximum ranges must be equal to $0.01 or more.

• Discount (%) - Define the discount applied to the range of starting balances

• Plan type - Select the rule plan type:

  • One-time payment is a lump sum.

  • Regular installments are recurring payments.

  • Custom series are tailored recurring payments with variable payment amounts, frequency, and duration. Advisors can propose custom installment plans with variable number of installments and payment amounts, as long as they follow set guardrails.

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HOW TO MANAGE RULES

Network Members can update, pause or delete rules at anytime.

Step 1: Select View rules to view the rules within the ruleset.

My Settlement rules displays a rule cards for each rule that has been defined within a ruleset. Rule cards provide a snapshot of rule variables:

• Minimum and maximum starting balance range

• Number of payments or time interval (i.e. number of weeks or months)

• Discount percent

• Minimum payment amount

• Plan type

Step 2: Click Details to review or edit the paraments of the rule.

Step 3: Select the three dots to change the status of a rule.

• Delete - Permanently delete rule

• Pause - Archive rule to re-activate later

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HOW TO MANAGE NETWORKS

Network Members can manage counterparties to engage with, and see the state where both parties have mutually accepted the connection request and are currently connected.

Navigate to the Settings tab under the Settlements module.

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HOW TO SUGGEST AN ADVISOR

Network Members can invite counterparties to join the Kredit network and manage settlement negotiations.

Step 1: If you have an existing relationship with Advisors, type in their contact information under Suggest an advisor.

Step 2: Click Send invite.

A notification will be sent for them to claim their Kredit profile.

Step 3: Click View sent invitations to monitor previous invitations.

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HOW TO MANAGE RELATIONSHIPS WITH ADVISORS

Network Members can choose Advisors to interact with. Interacting with an Advisor allows the organization to search account data in the Network Member's system of record.

Step 1: Toggle on the relationship with Advisors.

Step 2: Toggle on Blanket Authorization to Communicate for Advisors.

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