Menu 13.1.5 - Legal Recommendation

To determine whether or not an account should be considered for legal action, you can configure The Collector System to score accounts based on certain criteria. Accounts that meet the minimum score are placed on the Legal Recommendation report. For more information, see Running the Legal Recommendation report.

The criteria for inclusion on the report include balance owing, employment rating, assets rating, and either the age of the account (if payments have not been received) or the last payment date. You can also score the balance, age, and last payment for low, middle, and high ranges.

One of the criteria used to determine whether to send an account for legal action is the account's ability to pay. This is determined from the customer's employment status and their number of assets.

When scoring the Employment Rating field, you need to evaluate the customer's ability to pay based on their income and determine whether it is worth it to send the account for legal action. The Employment Rating is stored in Fiscal line 35 of the account's Financial Profile screen and is rated from one to four. Four is the highest rating, which means the account has little or no ability to pay.

The following table displays the multiplies that corresponds to each rating that you enter in the Employment Rating field. The rate, multiplied by the multiplier, gives you the employment score.

Rating	Meaning	Multiplier
4	Unemployed	0
3	Low income	.33
2	Medium income	.67
1	High income	1.00

The Assets Rating field is similar to the Employment Rating field, but instead of evaluating income you evaluate the customer's assets that could potentially be used to pay the balance on the account. The Assets Rating is stored in Fiscal line 36 of the account's Financial Profile screen and is rated from one to four. Four is the highest rating, which means that the account has little to no assets.

Just like the Employment Rating field, the Assets Rating field uses a multiplier to calculate the asset score.

Rating	Meaning	Multiplies
4	No assets	0
3	Low value	.33
2	Medium value	.67
1	High value	1.00

For both fields, the higher the score, the better the ability for the customer to pay.

In the Legal Recommendation Criteria screen, you can advance to the field to update by pressing Enter. To move the cursor to the previous field, type a forward slash (/).