Managing responsible persons

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A responsible person refers to one or more individuals and/or a companies who are partially responsible for the full amount of the same debt. For example, Sam and Joe take out a loan together to start a new construction business. After a year, their company goes out of business and the loan goes into a default status. Because the loan is in both Sam and Joe's names, they are both responsible for paying back the loan.

The Responsible Persons feature in The Collector System allows you to work and manage these accounts by entering each responsible person as a separate account and combining them into a Responsible Person (RP) packet. The individuals and/or companies in the packet are considered equally responsible for the full amount of the debt, but your collection efforts are directed toward each responsible person individually. The payments submitted by each responsible person are deducted from the principal and credited to the party who submitted the payment. When the balance is paid in full, the collection process ends, regardless of who made the payments to the account and how much each person paid.

Do not use the Responsible Persons feature for debts that are apportioned or divided among different payers.

A responsible person is not the same as an alternate payer. An alternate payer is not primarily responsible for the debt and is not entered as a separate account. The alternate payer is contacted for payment only if the customer does not pay.

To set up the Responsible Persons feature, contact a Finvi Support representative.