How will I know when an account becomes delinquent?
We provide you with all the tools to stay informed.
What happens when a payment is missed?
Our servicing activity is based on the payment method and length of delinquency.
Credit Card: Contact is initiated within one day of the first failed payment attempt. If the payment is declined, we will attempt to process it three additional times. Please note that if the payment declines on the fourth attempt, we assess a $15.00 processing fee to the member.
Bank Draft (EFT): Contact is initiated immediately upon notification from the bank that the payment was returned. This is normally within 3-5 business days of the initial payment. We impose a $25 return payment fee to your member when a payment is returned by their bank.
Coupon/Billing Statement: Contact is initiated three days after the payment due date. Once an account reaches 61 days past due, no additional billing statements will be sent, however attempts to collect the payment will continue until the account is current or goes into Default.
NOTE: For repeated declines/returns, chargebacks, and for returns for reasons of "Stop Payment", "Invalid Information" and "Authorization Revoked", we stop drafting accounts until an alternative payment method is secured.
How are fees assessed to my members?
Fees are charged only in cases where an account becomes delinquent, a payment fails or a payment is returned. These fees are broken down into 3 categories: Late Fees, Processing Fees and Returned Fees.
Late Fee: If a payment is not received within the grace period (default is 5 days) a late fee (default is $10.00) is assessed to the member's account. The late fee is designed to offset the additional costs of servicing delinquent accounts and to encourage members to pay on time.
Processing Fee: This fee of $15.00 is assessed to the member's account after four consecutive credit card declines within 5 business days.
Returned Fee: This fee of $25 is assessed to the member's account when a check or EFT payment is returned by the member's bank.
*If you use a membership agreement other than the one provided by Member Solutions, please provide a copy of your agreement for our records. Late fees cannot exceed $25 and grace periods cannot exceed 15 days. Please note that all fees collected are retained by Member Solutions.
Can I offer a settlement when an account becomes delinquent?
Yes. We recommend offering a settlement of 50% of the account balance at 90 days past due. If you would like us to automatically settle accounts, please complete and submit the Settlement Authorization section on the Servicing Options Form.
Questions? Contact Client Services at 888.277.4407 or email client@membersolutions.com
What happens when an account goes into default?
Default occurs when a debtor is unable to make the required payments or is unwilling to honor the debt.
After a period of 90 plus days the responsible party has either:
Refused payment
Initiated a "do not call" or "cease and desist". We've received explicit instructions from a member or legal representative to "cease and desist" all attempts to collect a debt. When this occurs, we are legally prohibited from contacting the member or face a stiff penalty. This does not forgive the debt, but it does tie our hands since we are legally obligated to cease contact.
Been unresponsive to our attempts to make payment arrangements
When an account reaches this stage and you have opted not to enroll in the Collection Agency Program, Member Solutions will change the status of the account to "Default” and no longer service the account. To identify which accounts are defaulted by our system, we suggest reviewing the Account Comparison report on a monthly basis. At this point, you are free to pursue the balance on your own.
Does Member Solutions use an outside collection agency when an account goes into Default?
YES. Member Solutions has partnered with a national collection agency, First Credit Services (FCS), to collect on defaulted accounts. The collection agency uses all of the resources allowed by the law to find the debtor and collect your funds. You must enroll in this program to participate. Once you sign up with FCS, Member Solutions will automatically place all accounts that are 90 days past-due with FCS. On or around the 15th and 30th of each month, FCS will provide you with a list of any new accounts submitted. You have seven (7) days to review the list for accuracy and remove any accounts that you do not wish FCS to pursue.
How much does this service cost? First Credit Services charges a flat 40% contingency fee. If FCS is not successful in collecting a payment, you pay nothing.
How do I enroll in this program? You will need to sign an agreement with First Credit Services and complete an authorization form, allowing Member Solutions to send accounts directly to them. CLICK HERE to review the terms and sign up. 1-800-606-7066,.
Does the collection agency report to the credit bureaus?
During the sign-up process, you can choose whether your collection accounts will be reported to the national credit bureaus.