When a customer fails to pay at least the minimum amount due on their credit account by the due date, the account's collection status changes to OVERDUE. Depending on a country's regulations, you might be required to close the account for nonpayment if it remains in OVERDUE status for a certain number of days. An account that is due to be closed for nonpayment (or has already been closed for that reason) is called a delinquent account.

CRELI (CREdit LIquidation) is a Pismo API that enables you to manage the closure of delinquent accounts. CRELI enables you to:

• Manually close an overdue account after a configured number of days.
• Set up the Pismo platform to automatically close overdue accounts after a configured number of days.
• Monitor overdue accounts that might need to be closed for nonpayment.

Close delinquent accounts

To close a delinquent account, the Pismo platform follows these steps:

1. Post accrued interest. The delinquent account should have accrued some interest that is in a pending state. This interest is posted to the statement before the account is closed.
2. Advance future installments. If the account has installments in future statements, these are moved to the current statement. This allows the Pismo platform to sum all the debts in the current statement.
3. Zero out the balance. Now that all the debts are in the current statement, a credit transaction is posted that is equal to the current balance, so that the resulting balance is zero.
4. Change account status to CANCELLED. This prevents future operations on the account.
5. Block account cards. Any credit cards issued for the account must be blocked, so the customer can't keep using them.
6. Generate a delinquent_account-1 event.

📘

It's possible for a transaction to be authorized before a delinquent account is closed, but not posted until after it's closed. See Late transactions for information about how the Pismo platform handles this situation.

How to manually close a delinquent account

To manually close an account for nonpayment, use the Close delinquent account endpoint. This endpoint starts the delinquent account closure process for one account.

The following validations need to be made in order for the request be successful:

• The account must be a credit account.
• The account must not be in the delinquent account closure table.
• If processing_code is not in the body of the request, the endpoint uses the value configured in the program parameters. If processing_code is not configured in the program parameters either, then the endpoint throws an error.
• If reason is not in the body of the request, the endpoint uses the value configured in the program parameters. If reason is not configured in the program parameters either, then the endpoint throws an error.
• If the reason field is validated, its value is registered in the accounts API.

If Close delinquent account executes successfully, the account status is set to CANCELLED.

How to automate closing delinquent accounts

The Pismo platform runs a job once a day to automatically close delinquent accounts. To activate this job for your program, you need to use the Update program parameter values endpoint to configure the following parameters:

If you provide a non-empty array of integers for the DAYS_BEFORE_TO_WARNING_DELINQUENT_CLOSURE parameter, the job generates a Delinquent account warning event for each integer in the array. For example, if the first integer in the array is 5, the job generates a warning event 5 days before the account is due to be closed.

Get delinquent account closure information

If an account is going through the delinquent closure process, use the Get delinquent account closure process information endpoint to get the account closure information.

Late transactions

A late transaction is a transaction that was authorized for an account before the account was closed for delinquency, but wasn't posted until after the account was closed.

When an account is closed for delinquency, the Pismo platform monitors the account for the next 365 days. If a late transaction is posted to the account during this period, the platform posts a credit or debit adjustment to bring the account balance back to zero. The platform then issues a late_transaction-1 event.

📘

The count for the 365 day period begins the day after the account is closed. If a late transaction occurs on the day of closure, the Pismo platform processes it the following day.