Navigation:  Loans > Loan Screens > Account Information Screen Group > Signature Loan Details Screen > CSO tab > Setting up CSO Payments

Loan payments for CSO-generated loans are usually made via a website by the customer. History records these payments with tran code 2600-25 (credit card payments). Part of each loan payment goes toward paying the principal and interest on the loan, and another part of the payment goes toward paying off the Original Loan Guarantee Amount that goes to the CSO.

 

Additionally, the CSO charges an Investor Service Fee, which is calculated as a percentage of the original balance of the loan. For more information about fee amortization, see the Amortizing Fees tab.

 

The system sends an ACH distribution to the CSO each time a payment is made. This transmission is not sent until five days after a payment is made, just in case the payment is rejected for any reason (non-sufficient funds, account closed, etc). If the payment is rejected, you can cancel the ACH distribution scheduled to be sent to the CSO. See Canceling CSO Distributions for more information.

 

Additionally, the system also sends an ACH distribution to the CSO for the servicing fee. This is done on a monthly basis, regardless of the payment Frequency.

 

In order to send and receive funds from CSOs, some setup is required. Your GOLDPoint Systems representative can help your institution with these steps:

 

1.The CSO must be set up on the Loans > Payee Information screen. You must include the CSO’s routing and account number where ACH funds will be distributed each month.

 

2.You must set up the ACH routing and account number where funds will be distributed in the event a loan is charged off. The ACH account numbers used by your institution are set up on the Account Identifiers tab of the GOLD Services > Office Information screen.

 

3.You must define the CSO servicing fee on the Loans > System Setup Screens > Amortization Descriptions screen. To change any information concerning the CSO servicing fee, such as the amortization method, use the Amortizing Fees tab.

 

Reading History

ACH distributions made to the CSO are recorded with transaction log 261 to record the movement of money to the appropriate General Ledger account. The Transaction Origination Code (TORC) for this transaction log is 15 (CSO payment distribution).

 

The service fee for the CSO is sent monthly using transaction log 251. The TORC for this is 17 (CSO Monthly Service Fee).

 

In the event of charge offs, all remaining loan guarantee money is sent to the CSO. The balance of the loan is paid back to your institution from the CSO via an ACH transmission. This will be displayed in history as a lender distribution.