CUSTOMER MANAGEMENT - Legend

ICON MEANING

This
This symbol
symbol signifies
signifies aa specific
specific role
role that
that performs
performs the
the task
task in
in the
the process.
process. The
The
assignation
assignation of
of each
each group
group isis described
described by
by this
this symbol.
symbol. See
See separate
separate list
list on
on level
level 11
for
for the
the actors
actors involved
involved inin the
the process
process

This
This symbol
symbol isis used
used to
to signify
signify aa function
function or
or activity
activity performed
performed in
in the
the process
process to
to
support
support or
or achieve
achieve business
business objectives
objectives

This
This symbol
symbol represents
represents anan event
event that
that isis the
the resultant
resultant state/activity
state/activity that
that isis produced
produced
by
by aa process
process and
and signifies
signifies the
the system
system activity
activity

This symbol is used to signify a link to or from the level 2 process.

This
This circle
circle isis used
used to
to signify
signify an
an operator
operator that
that aa function
function can
can initiate
initiate OR
OR and
and AND
AND for
for
XOR
an
an event
event (follows
(follows only
only one
one path)
path)

V This
This circle
circle isis used
used to
to signify
signify an
an operator
operator that
that aa function
function can
can initiate
initiate AND
AND for
for an
an
event
event
(follows
(follows all
all paths)
paths)

This
This circle
circle isis used
used to
to signify
signify an
an operator
operator that
that aa function
function can
can initiate
initiate OR
OR for
for an
an event
event
V (follows
(follows one
one or or many
many paths)
paths)

This
This symbol
symbol signifies
signifies off
off page
page reference
reference where
where the
the diagram
diagram flows
flows on
on to
to aa new
new page.
page.
The
The shape directs the flow to the new page and is labelled with the relevant page
shape directs the flow to the new page and is labelled with the relevant page
numbers
numbers being
being directed
directed navigated
navigated to
to on
on the
the document.
document.

The
The two
two links
links signify
signify sub-process.
sub-process. The
The first
first link
link navigates
navigates to
to review
review the
the sub-process
sub-process
B on
on aa new
new page.
page. The
The second
second link
link represents
represents return
return to
to the
the original
original process
process and
and
returns
returns toto the
the previous
previous position
position onon the
the page.
page. These
These links
links are
are labelled
labelled in
in
alphabetical
alphabetical order.
order.

Home icon will return you to the Main Workflow tab (hold ‘Ctrl’ key and left click)

A coloured box displayed in the comments section of

Process Note:
A Reference Name is a
limited amount of
information entered as a
placeholder for identifying a
proposal
the flow signifies comments associated with the
process. The colour represents the below -
Grey box signifies - Process note
Green box signifies – Status
Orange box signifies – Cycle time
Blue box signifies– SOX controls
Yellow box signifies – Performance Metrics
Red box signifies – System
CUSTOMER MANAGEMENT - LEVEL 1 & 2 DEF.
PROCESS

Market Customer Credit Customer

Development Acquistion Delivery Management

This process is designed to stimulate payment from customers/dealers/merchants/insureds in a number of ways

ranging from neutral to aggressive, resulting in either payment receipt or a hand off to resolve the uncollectable item. Encourage
Activities include: creating and transmitting invoices, statements, coupon books, and past due notices; providing
billing information to outsource partners; making soft and hard collection calls; and restructuring payment plans such Payment
as deferrals, skip payments, and term revisions.

This process is stimulated by incoming requests from business partners, customers, and insured policyholders who
have a concern or interest in current or past account information. These requests can be via phone call, letter, fax, or
E-mail. Activities include: identifying the customer; understanding the request and it's purpose; retrieval of account or
Resolve
policy information from various sources; analyzing and investigating information to determine appropriate resolution; Enquiries
replying to the customer/partner; and documenting all communications and the resolution. These activities apply to
both individual customers as well as dealers and merchants.

This process uses input gained from the Encourage Payment and Resolve Inquiries activities as well as payment
receipt information (i.e. cash application/dealer settlements) to adjust receivable balances of JDF accounts. Activities
include; auditing and verification of cash/settlement application; JV processing for miscellaneous account Maintain
adjustments/updates prompted by internal reports (i.e. duplicate serial number reports, small balance reports); and
customer/partner contact and relationship updates (i.e. address changes, customer/merchant relationship changes or
Account
additions).

This process is kicked off by information received from the Adjust Receivables sub-process. Activities include: the
retrieval and release of documents held; filing of any required legal documents; update of liens; and notification of Close Acount
other involved parties as required.

The purpose of this process is to ensure the protection, and facilitate the sale of collateral pledged to JDF. This
process includes managing the inventory verification process/costs associated with dealer inventories floor planned
with JDF, as well as the sale of assets from lease maturities and voluntary repossessions. Activities related to collateral Collateral
from matured leases or voluntary repossessions include: proactive determination of customers intentions for
equipment at lease termination, recovery of the asset; inspection of the asset for final billing purposes; establishing Management
the price for resale; determining the channel for selling the assets (i.e. ERS, Bid List, Dealer, Auction, etc..); and
identifying and gathering of any financial instruments or other security pledged against the asset.

This process begins when an account is deemed to be uncollectable or a customer enters bankruptcy. The purpose of
this activity is to manage and facilitate all legal activities that may be required to protect our position or support our Litigation &
actions while minimizing JDF’s exposure and loss. Activities include: retaining and directing attorneys and/or
collection agencies in litigated matters requiring outside council; determining, retrieving and preparing all required Recovery
documents; responding to required legal activities (i.e. timely filing of claims and responding to customer counter
claims); and maintaining documentation and updating account statuses.
Management

This process includes all steps necessary to adjust and settle insurance claims including estimation of claims amounts, Claims
documentation of claims, and processing of claims payments.
Management
IGNORE - Process_Index

Main collector workflow overview;

· Pre-delinquency
· Score and risk rating
· Work assignment and Collector work queues
· Reason codes;

· Personal issues
· Natural disasters
· Customer income delay
· Theft / fire / insurance
· Bankruptcy / customer insolvent
· Machine quality / dealer dispute (incl. Collateral Substitution)
· Disputed invoice

Primary remedies / actions;

· Cash re-allocation
· Promise to pay
· Deferral
· Rewrite/Rebook/Revision
· Un-contactable customer
· Assumption (transfer contract to another customer)
· Surrender collateral
· Repossession
· Small balance write-off
· Contract write-off
· Litigation
Sub Processes;

· Close out quote(s)

· Remarketing
· Collateral Substitution

Not covered in workshop or processes not yet validated;

· Insurance Cover checking

· Final Loss Recovery (post write-off / termination / litigation)
· CHINA: Dlr pays Customer Past Dues
· CHINA: Fapiao [printed] management
· INDIA: Security Cheques
· CHINA: JDLink - asset disable
· Assignment (transfer contract to another party)
· Additional collateral
· Manual Non Accrual
· Provisional Loss Forecasting
· Dealer Reserve Administration
· INDIA: receipting / reconciliation statuses, bank reconciliation
· Task ownership definition
· Call Management
· Master data updating and approval path
CUSTOMER MANAGEMENT - MAIN_WORKFLOW CustMgmt-Processes v2.0.vsd
ACTOR PROCESS NOTES
#1
Encourage
Payment

#2 Pre-
EP.1 delinquency
Y
activities to
complete?
N
#3
Contract
becomes
delinquent

#4 System Note:
Identification at customer level, account, Bill-To,
of past due Delinquency (invoice). Not by individual
Contract
Accounts

#5
Question:
Score & Rating *Possible to standardize for all the attributes
assessed in scoring? Asset type, customer
type, geography, #days overdue, $$ overdue?

W/Shop Note:
#6 China: assign by dlr and product line and if
Pre-prioritized <30 goes to Jnr collector,
Work List India: by Geography/Dlr ‘span of control’,
defined Thai and Chile: is shared pool.

W/Shop Note:
#7 Search: search is limited to only few
#8 General Account attributes. Want more and to filter by
Task Reminder Broken Promise
#9 Customer assigned to Contract (e.g. when customer calls in).
prompt to user to Pay
#10 Search User / Group Question:
* need to consider reassignment (temporary
or permanent)

#11
Select & Review
Customer
Account
Legal
W/Shop Note:
Accntg Policy On account and cash receipting automation
would assist as it causes delay in all countries
#12
Cash_Re Cash on
MA4 System Note:
alloc Y account or
Can see on account cash at customer level.
Unallocated? But not un-identified, or partly applied /
unapplied.
N
Process Note:
#13 Cash received not yet allocated, or can be re-
Prior remedy or allocated to different invoices or customer
arrangement in Y contracts.
place?

N
#14
Has customer System Note:
Assess Coming due payments unless billed are avail in
#15 Y breached Lease Center, not collections. Depends on
exposure & risk
arrangement? billing horizon (how many days advanced the
Unit runs Billing for).

N
#16
System Note:
#17 Contact Add Follow Up Guarantor and asset info not avail in
N Collections module. Need to open Lease
Customer? task in system
Center.
For contact info to be visible in Header, the
contact info must be entered at Customer
Y Account level in OLFM.

#18
Cust.Loc Customer System Note:
EP1.5
ated Contact N User can document conversations in
successful? ‘Interactions’ in OLFM.

Pre.Delin
q.Fail
System Note:
Past Due Reason (Codes) Reason code option is at each delinquent
invoice, not at customer or contract level.

#19 Establish
Machine quality Customer W/Shop Note:
#20 EP.6 Reason for non EP.9
EP.9 Income Delay: Differentiation between
issues or Dlr income delays
#21 payment & payment source delay versus payment source
Dispute or issues loss. Original payment source loss may drive a
record
different remedy such as Rewrite instead of
PTP.

#22
Personal issues Establish Question:
#23 EP.7
EP.7 Theft, fire, CM.4 * ability to record / document conversations
(health, willingness to
#24 insurance with customer? (Oracle ‘interactions’)
divorce, etc) pay

#25
EP.8 Confirm Bankruptcy/
#26 Natural disaster LRM.2
Collateral customer
#27
location etc insolvent

#28
Demand
SB.W- Insur_Sh Nat_Disa Disp.Inv_ immediate Deferral Rewrite_ Mach_Q Sale_Sho Insur_Fai
payment Litig_Fail
off_Fail ortfall ster Fail _Fail Fail uality rtfall l

#29
Re-assign or
escalate?

Mediatio
Insolv_C Litig_Co Pers_Pro Cust_Loc Income_ Assign_F IN:Cheq
PTP_Fail n_shortf
#30 ompl mpl. b_Fail _Fail Delay ail ue. Lit
all
Action to be
pursued?
System Note:
Checklists can be added to system as
#31 attachments
#32 EP2 Surrender of CM1
Promise to Pay Process Note:
Collateral Deferral is the moving of due date of one or
more repayments without affecting the
remaining repayments. Typical where
#33 repayment source is delayed, not lost.
EP3 CM2 Disputed invoice is when Customer claims
#34
Deferral Repossession there is an error on the JDF invoice and it
should be corrected.
Surrender of Collateral is when customer
willingly returns the assets on the contract
#35 (but still has contract balance obligations).
EP4 EP5
EP5 Assumption is transferring the contract to
#36 Rewrite Assumption another primary borrower, but leaving
contract schedule in place.
Assignment is transferring the customers debt
obligation (Contract) from JDF to 3rd party
#37
such as dlr.
MA1 Disputed LRM1
#38 Litigation
Invoice

#39
MA2 Small Balance LRM3
#40 Assignment
Write-off

#41
#42 MA3 Contract Write- Additional CM6
Off Collateral

#43
China: =>60d;
CH1
Dlr pays past
dues
#44
Additional
actions to be
then
considered

#45 Account to be
#46 Authorize and placed on W/Shop Note:
Y Other customer’s contracts may need to go on
request action Manual Non non accrual depending circumstances
Accrual?
SOX Control:
Accntg SOXLSG/INS4010 – LSG405; accounts are
N placed on and off non accrual manually in
Non.Accr
accordance with policy
ual

SOX Control:
#47 Set specific loss SOXINS/LSG2030 – LND/LSG250; impaired
Calc & make receivables that are recorded at net realizable
#48 provision for
Y request to value are approved and accurate.
Customer SOXRVA1015 – RVAL015; impaired receivables
Accounting
Contract(s)? reviewed min. quarterly to ensure accurately
valued
N
#49 Set flag in
Turn off Auto
#50 System. Set
Y Dunning
Follow up
Notices?
reminder
N

#51 Disable
equipment CH.2
Y
function via
JDLink?
N
#52 Credit Bureau
Create report /
#53 notification of CH.2R
data file and Y
Customer past
send
dues?
N
#54
Check Insur.Co
CM.7
Insurance on Y mpl
Colleral?

N
#55 Make final
Question:
comments and
* Collector need to see comments from
notes to Customer Service team? Need to segregate or
Account allow both ways?

#56
Close
Customer's File

END

Sub processes

#57
India: Security
#58 CM3 MA5 IN.1
Remarketing Close out quote Cheque
#59
presenting

#60
#61 Loss Recovery LRM4 Collateral CM.5
CM.5 China: JDLink CH.2
#62 [not defined] substitution Disable asset

#63
Check
CM.7
Insurance
Coverage
ENCOURAGE PAYMENT - EP-1.Predelinquency
ACTOR PROCESS NOTES

EP.1
Encourage
Payment

Identify
W/Shop Note:
repayments Require rules where Reminders only get
requiring issued to selected customers (e.g. if customer
reminders is a good payer don’t remind). Avoids cost if
reminder is posted by mail

Process Note:
Refer to Past due amounts would have already been
Already in
Y Collector, if actioned by collector. But amounts may be
arrears? included in a new reminder.
required

Quantify total
due: past due
and coming due

W/Shop Note:
INDIA: Mode of payment: cash? Schedule visit.
Letters cost too much, sms preferred.
Penalties if wrong number with sms and
N complaint made.
Call Customer? CHINA: uses online sms tool with 3rd party.
Send one sms for multiple contracts. Diff for
STFP customers. Include email to dlr. SMS to
Customer. Wechat a future consideration.
Y THAI: now exploring using 3rd party, JDF Corp
require high volume to offer a soultion.
Customer Discuss remedy CHILE: not required.
FAIL: response and remedy.
confirms ability N options with FAIL: Letter; not at this address – then next
to pay? Customer action item for fail notice.

Create
INDIA: Field Customer can
reminder
N Exec Cash give valid
statement
Collection? Promise to Pay?
notice Y
Y

Legal Collate data Pre- Process Note:

Distribute and send to Delinq.P SMS may have legal implications such as
reminder notice Field Exec TP spamming laws, acceptable in court etc.
N

Record in Cash Collection

System Processes

Determine JDF
course of action

Notice failed? Y

Contact
Customer for
updated
contact info.
Pre.Delin
N q.Fail

Update System

END
ENCOURAGE PAYMENT - EP-1.5.Locate_Customer
ACTOR PROCESS NOTES
Encourage
EP1.5
Payment

Contact co-
borrower &
guarantors

Contact
referees from Process Note:
If dlr in possession, Dlr may be asked to retain
original credit asset.
assessment

Enquire with W/Shop Note:

India or Dlr for India & Thai: field visit before contacting Dlr.
Field visit Y N India has field people on the ground to visit.
Thailand? Customer &
Chile & China: contact dlr before a field visit.
asset location

Enquire with Enquire with Legal

Dlr for known
Field visit
Customer & employers of
asset location customer

W/Shop Note:
Not sure if able to speak with employers?
Issue formal Legal Look for associates or related persons.
Notices to last
known address

Record asset
location, if
known

Legal
Engage Skip
Tracing Agent
Status:
Skip Agent

W/Shop Note:
Thai: Court action via litigation to locate
Customer
N customer.
located? Other methods to locate: Credit Bureau
reports, Deere Warranty systems, social
media sites (Facebook, Wechat etc)
Y
Report to Credit
Agencies
Update
customer file,
add notes to
system
Determine JDF
course of action

Cust.Loc Cust_Loc
ated _Fail
ENCOURAGE PAYMENT - EP-2.Promise_to_Pay
ACTOR PROCESS NOTES
Pre-
Encourage Insolv_P W/Shop Note:
EP2 Delinq.P
Payment TP PTP can be done ahead with reminder calls.
TP Field visit info to come back to system.

Quantify W/Shop Note:

overdue, Accrued late interest is not currently visible in
Collections Module.
coming due & Need to view all charges to bring account
applic. charges current.

PTP_Pay Customer
PTP_Bal.
out Y wanting payout
value?

Negotiate W/Shop Note:

Late interest charges to be quantified as at a
payments & future date to allow customer’s payment and
date(s) clearing (e.g. 14 days post current date).

Can give PTP W/Shop Note:

India: Field visit
with valid Capture customer’s reasoning for ability to
N to investigate, if make the payment (identify payment source)
payment
required.
source?

Y
Process Note:
Promises can be for many invoices and
Define which multiple part payments thereof
invoices are to
be [part] paid W/Shop Note:
Cash application hierarchy may differ to how
the PTP payments are defined. Eg CHILE apply
to insurance first.

Within PTP Determine JDF W/Shop Note:

Y N Policy exception notification or report if
policy? course of action system cannot limit as per the policy

India: PTP>10 Create PTP’s in

W/Shop Note:
days requires System with PTP_Fail PTP does not stop dunning letters or other
field visit notes notifications.

Define
India: Schedule Cheque, or re-
Customer
physical Cash present same
payment
Collection Cheque
method

China: Confirm W/Shop Note:

Customer wire China Direct Debit gets re-attempted every
Continued DD arrangement day. Or can be Wire Transfer instead. When
transfer
draw with Customer invoice cleared with Wire Transfer, DD will
cancel automatically.

Define
Process Note:
additional daily Daily charge relates to additional late interest
late charges per day the customer is late from the agreed
post quote date payment date.

Add comments, W/Shop Note:

attachments, Customer can be asked to sign an agreement
and follow up in of the PTP, Upload this document to system
system

System Note:
PTP Cleared. Cash received Broken PTP Grace day can be applied to PTP to allow cash
Y N receipt and clearing, otherwise the broken
END and allocated? recorded
PTP’s will appear immediately in the
collector’s work queue.
ENCOURAGE PAYMENT - EP-3.Deferral
ACTOR PROCESS NOTES
Process Note:
Encourage Deferral: where the source of payment is the
EP3 same but delayed, or alternate source of
Payment
payment identified which is not expected to
impact other future payments.
Repayment(s) due date is moved to a future
date preventing it from going into arrears as
Quantify per original due date. Will not fall into arrears.
IRR will reduce unless income compensated
overdue, with a fee, but the remaining payments are
coming due & left as is.
charges If source of payment is lost, then this is
typically a rewrite.

Confirm
payment source
and record
W/Shop Note:
Evidence of the payment source may be
required to be recorded
Review prior
arrangements,
if any

Negotiate
payments &
date(s)

Arrange Process Note:

Rewrite Within Deferral collateral Policy will limit Collector’s authority for
N Y number of deferrals, amount, duration, or if in
feasible? Policy? inspection, if
non accrual state.
required
N Policy
Y
Quantify
Determine JDF
exposure &
course of action
equity

Refer_W Deferral Credit Analyst W/Shop Note:

rewrite _Fail review, if Some cases a credit analyst may be needed to
required assess payment source etc.

China: Dlr tyo

Obtain relevant
agree to
JDF approvals
deferral

Apply Fees & Process Note:

Fees normally in lieu of past due interest that
Charges, if would be payable AND maybe lost income in
applicable the IRR due to later principal reduction.

Formalize Send W/Shop Note:

arrangement documents to Customer must sign deferral agreements. Add
and notify Customer(s), if steps to create and receive.
CHILE: Notary involved in executing docs.
parties required

System Note:
Execute in Receive signed Deferral will require a rebook / revision of
system documents existing contract

Add comments
and follow up in
system

Update Lien &

Insurance
Deferral END
duration, if
required
ENCOURAGE PAYMENT - EP-4.Rewrite
ACTOR PROCESS NOTES
CHINA: W/Shop Note:
Refer_W Coll_Sub Rewrite is a change in the structure of the
Encourage EP4 Request
rewrite st remaining contract because there is a change
Payment submitted by in repayment source or securities. Resulting in
Dlr customer’s inability to make payments as per
the original payment schedule and original
repayment sources / cash flow that were
assessed. Typically edits to multiple
Quantify repayments and the contract term. Retains
Term.Pa
Term.Pa Term.Pa
overdue, same contract number.
yout
yout yout
coming due &
charges

Process Note:
Rewrite. System records the number of times already
Within Rewrite
N Fail N re-written.
Policy?

Updated
Customer contract rate
Y
agrees? (pricing) and
fees?

Collate
W/Shop Note:
information incl Escalate to CHINA: current policy is if <3 month impact
Y
termination Credit Analysts the collector will have authority. Move of
balloon payment(s), except for last. Using
value
rewrite for deferral with same IRR.

Perform Cycle Time:

Notify parties N Approved? Metric: turn around time from request to
underwriting
decision and execution of.

Y Arrange
collateral
Determine JDF Notify parties of
inspection, if
course of action fees, new
required
repayments
and terms
Request fresh W/Shop Note:
Notify dealer also of the rewrite.
financials, if CHINA: ask dlr to agree to rewrite, unless
required rewrite request submitted originally by dlr.
Rewrite_ China: Confirm
Fail Dealer
agreement to
rewrite W/Shop Note:
Re-price, if Re-price; if subsidized, use JDF IRR, not
required customer IRR, to calc interest. No carry over of
unearned subsidy.
Re-price would occur outside of the system.

Send
Create new
Agreements to
Agreements
Parties

Add comments
on old contract Receive signed
with rebook Agreements
reason

Complete Process Note:

rebook in New contract has same contract number, old
System is archived. All history must be retained.
Notes held at account level, still visible for
rewrite.

Old contract is
closed
W/Shop Note:
THAI: need to raise fee for additional
insurance fee for any extension of term.
Update Lien &
Insurance Status:
END
duration, if Rewritten
required
ENCOURAGE PAYMENT - EP-5.Assumption
ACTOR PROCESS NOTES

Encourage EP5 W/Shop Note:

Payment CHILE: assumption not required, but maybe
for cross border. Debt automatically passes
down to next of kin (eg wife). But can appeal
to courts.
Obtain formal
China Dlr W/Shop Note:
request from China: requires assumption before dlr buyout
Assumption and
existing otherwise unnecessary VAT may be raised.
buyout
customer

Confirm asset W/Shop Note:

location and Request can be from new customer. They may
condition already be in possession of the asset.

Policy
Existing W/Shop Note:
Contract in customer to Policy: Would normally require the contract to
Y be up to date.
arrears? pay past due
Consider title to the asset: Loan, Lease, HP.
and interest? Tax considerations: may be a consideration if

N N Y asset is taken back to JDF then sold versus

assumption

Ensure new Process Note:

party is aware Receipt of past dues and fee payment may
of monies happen after the approval step.

payable

Confirm timing
required for
assignment of
contract

Send
assumption
application
pack to parties

Receive and
Assign to Credit
collate
Analyst
information

Notify parties, Credit W/Shop Note:

incl. Dealer, if Y Approved? assessment of CHINA: ask dlr to agree to assumption, unless
required new Parties submitted by dlr originally

Prepare, send &

Notify parties,
have
N incl. Dealer, if
agreements
required
signed

Receive
Determine JDF
payments (fees,
course of action
past dues)

Execute Assign_F System Note:

assumption in ail Assumption requires rebooking in system to
system update parties to the contract.

Update
Insurance,
registration,
lien, etc

China Dlr
N END
Buyout?

Dlr_buyo
ut
ENCOURAGE PAYMENT - EP-6.Machine_Quality-Dispute
ACTOR PROCESS NOTES

Encourage EP.6
Payment

Identify
Customer’s
concerns

Contact Dealer
Assess facts of to confirm Asset Quality
the dispute claims & status issue?
of resolution
W/Shop Note:
Dlr should represent JD as well. DTAC informs
JD of a Machine Quality Issue.
Establish if
Asset to be Asset to be
dispute with Dlr
repaired? replaced?
only

Establish
Review with JD
severity and
and obtain
repair
approvals
timeframe

Notate system
Set follow up in for asset
System substitution
requirement

Process Note:
CM.5 Collateral substitution workflow required once
CM.5 replacement information supplied. Lien
registrations and insurance will need to be
Obtain Customer still updated once confirmed.
statements liable for
N
from customer, payments &
Dealer and JD late charges? Policy
Legal
Y
W/Shop Note:
Stop payment Billing would never be paused or stopped. If
contract to be cancelled, special consideration
reminders? if in same month as booking but funds need to
be returned.

Issue payment Legal Process Note:

Issue payment
demand to Not typical for John Deere equip division to
demands to take responsibility for late interest. Customer
party
Customer or Dealer.
responsible
W/Shop Note:
May not chase customer, but drive resolution.
Pursue person responsible. Flag to indicate
Contract the handling of customer in this matter. May
termination? become legal consideration.

W/Shop Note:
May consult with JD over warranty in effort
to resolve
Confirm
Obtain
payment
approvals
arrangements

Add notes to
System

Payment Determine JDF

N Process Note:
resolved? course of action Next action may be a PTP, or termination of
contract, assignment back to dlr etc

Mach_Q
END uality
ENCOURAGE PAYMENT - EP-7.Personal_Problem
ACTOR PROCESS NOTES

Encourage EP.7
EP.7
Payment

Credit Life W/Shop Note:

Deceased Notate Customer account that customer is
Y insurance deceased. Consider changing co-borrower to
Customer?
N coverage? main borrower for purposes of dunning etc

N
W/Shop Note:
Transfer / Other parties Speak with Dlr also as they may be liable for
N debt. May buy asset, or ID who transfer can
Assumption N on contract be made to. JDF May do credit analysis on
possible? who are liable? responsible or new parties.
CHILE: assumption not required. Debt passes
down to next of kin, wife. Family could appeal
Y Y to courts.

Identify source W/Shop Note:

Legal
of payment, Switch co-borrower to main borrower for
Y Agreement still purposes of dunning etc
including
valid?
probability

Add notes in
system

W/Shop Note:
Notify Dlr of China: Dlr buy CHINA:
Y -Short Term Factoring Product (STFP): Dlr
balance owing out? would buy out (assignment of Contract).
-Lease: look to customer family to buy out.

N
W/Shop Note:
Accelerate to repo or surrender if co-borrower
Determine JDF not liable
course of action

Decease
Pers_Pro
d_BuyOu
b_Fail
t
ENCOURAGE PAYMENT - EP-8.Disaster
ACTOR PROCESS NOTES

Encourage
Payment EP.8

Natural Disaster
event

Confirm
declaration
with Gov.
agencies

Identify if W/Shop Note:

Government Chile: Yes.
assistance India: Gov only issues guidelines.

available

Identify JDF
customers
impacted

Confirm any Process Note:

legal limitations May be limitations on JDF actions such as
of JDF action repo.

Accounting Legal
Define / W/Shop Note:
records May need to quantify specific provision for
approve JDF
allowance for loss if bulk loss can be quantified for the
response whole program.
credit loss

Contact all
customers?

Y N
Contact all Notify Cust.
customers to Service where
determine to escalate
status Determine enquiries
collateral
condition and
location

Determine
probability of
payment
default

Determine
customer
assistance
required

Add notes and

circumstances
to System

Determine JDF
course of action

Nat_Disa
ster
ENCOURAGE PAYMENT - EP-9.Income_Delay
ACTOR PROCESS NOTES

Encourage EP.9
EP.9
Payment

Identify
customer’s
source of
repayment

Can an
Is this the
alternative
original source N
source be
or payment?
identified?
Y
W/Shop Note:
Looking to establish if original source is
Establish delayed or an alternative source can be found
reason for with no impact expected with remaining
repayments on Contract
Source delay

Payment source
Verify source
for remaining
and timing of
payments at
payment source
risk?

Add comments
to system

Determine JDF
course of action

Income_
Delay
IGNORE - EP-10.JDLink
ACTOR PROCESS NOTES

Encourage CH.2 W/Shop Note:

THIS PROCESS WAS NOT COVERED IN
Payment WORKSHOP

Notify Legal Question:

Customer of * Assume this is in writing as part of the
action to be dunning letters for C&F
taken

Receive cash
Payment from
Y and clear past
Customer?
dues

N
Question:
* are there two levels of disable?
Make request (boom operation and them immobilize)
to JDLink with END
Asset ID

Formal Legal
notification to
Customer for
Payment

Contact
Customer

Receive cash
Payment from
Y and clear past
Customer?
dues

Make request
Determine JDF
to re-activate
course of action
Asset

CH.2R
Notify customer

END
MANTAIN ACCOUNT - MA-1.Disputed_Invoice
ACTOR PROCESS NOTES
Maintain
MA1
Account

Research System Note:

Disputed invoice function doesn’t work the
Accntg customer’s same for leasing and loans.
claims Creates a request, approval required to then
create a credit for the invoice.

Rebook
required to JDF Invoice Legitimate W/Shop Note:
Y N Accounting stream impact for adjusting just
Y correct Error? claim? one invoice. If principal, should rebook.
invoice(s)

N N Y
Reverse Process Note:
contract Notify customer Reversing contract may not be possible if
of their liability billing has run and / or spans over a fiscal
possible? month end.

N Y

Terminate Disp.Inv_
contract and Determine JDF
Fail
rebook course of action

Booking Determine W/Shop Note:

_error Some invoices may not be adjusted according
adjustments to policy. Define what type of invoice can be
required adjusted by collector? Rent, past due, etc

Obtain Invoice
Obtain reversal
Adjustment
approval
Approvals

Correct errors Accntg

in original pre- Create memos
booked etc
contract

Send invoice
Book same
and
contract again
adjustments

Accntg Apply Tax China: Fapiao W/Shop Note:

China: Fapiao is issued upon cash received. If
adjustments, if adjustment, if issued, will also need to have an adjustment
necessary required. issued. Normally only issued with cash
receipts.

Add notes to
system

Small balance Dispute_

write off Y Inv.
required?

END
MANTAIN ACCOUNT - MA-2.Small_Balance_WriteOff
ACTOR PROCESS NOTES
Dispute_
Maintain MA2
Inv.
Account

Identify
invoices
requiring S/B
write off

Within Small
N Balance Write
off Policy?

Define reason
Determine JDF
for S/B Write
next action
off

SB.W- Obtain relevant Process Note:

Collector would have some level of approval
off_Fail JDF Approvals level, as would Collections Manager etc.

Apply write off Accntg

to outstanding
invoices

Update system
with comments

END
MANTAIN ACCOUNT - MA-3.WriteOff
ACTOR PROCESS NOTES
Decision to be
Maintain MA3 uncollectable or
Account Repo sale W/Shop Note:
reach thresh
INDIA: RBI define a write off to be at 360 days
hold

WriteOff
WriteOff Writeoff.
Determine
_Value
_Value Value
close out value

Determine
INDIA: W/Shop Note:
Dealer Reserve amount to be CHILE: Chile only, no reserve for cross border
Unrecoverable N Y
applicable? deducted from
asset?
reserve

N
Y
N

Serve demand Notify Dealer of

on dlr Reserve debits
Dealer Loss
sharing
Y
arrangement in
Quantify and place?
send Dealer N
demand notice Process Note:
Funds to be Money from customer, Insurance, guarantors,
Other monies applied to Dealer etc. Some funds may not be applied to
Y N customer account but only to the write off
incoming? Customer total, otherwise customer obligation post
account? write off may be reduced.

N Y

Cash Receipt Apply funds to

and application separate GL

Define net
Write off value

Define reason
for Write off

SOX Control:
Approve / SOXINS/LSG2040 – LND/LSG 260; write offs
Escalate are properly approved prior to removal of
receivable

W/Shop Note:
Write off XOR Charge off Estimated loss provision was done prior. Will
result in adjustment to original loss provision.

Move to non Status:

Apply write offs = Write off
performing
in system
status

Update system W/Shop Note:

with comments Next actions may be Loss recovery or litigation

Determine JDF rest

next action
MANTAIN ACCOUNT - MA-4.Cash_(Re)allocation
ACTOR PROCESS NOTES

Maintain MA4
Account

W/Shop Note:
Scenarios:
Cash sitting on -Surplus cash, can apply to other.
account or in Y -Wrong payment made.
suspense? -modify equity position in customer’s other
contract.
Request cash Accntg -cash application sequence alteration.
This may move to CSR actions, not collections,
N application to except for modify equity position: but this not
be completed likely to be done often.
Legal Can already
N applied cash be
re-applied to
different inv.?

Cash applied
Identify
only as per
invoices to be
customer’s
re-applied
instruction?

Obtain
necessary
approvals

Request cash Accntg

System Note:
application to Can allow collector directly to reverse, and
be completed apply to other.
Policy

Notify customer W/Shop Note:

Customer notification not required if fixing as
of re-allocation per customer instruction or as per our
discovery.

Add comments
and notes to
system

Over due Cash_Re W/Shop Note:

Doesn’t cover advance cash payment and any
balances still on Y alloc benefit thereof. Cash application hierarchy is
contract? standard for all.

END
MANTAIN ACCOUNT - MA-5.Close_Out_Quote
ACTOR PROCESS NOTES

Maintain Litigatio PTP_Pay Term.Pa Litig_Qu Insuranc

MA5
Account n out yout ote e

Dlr_Purc Booking WriteOff Partial or Full Dlr_Assi Insolvent Dlr_buyo

h _error _Value Termination? gn _Debt ut

Identify asset(s)
on contract

Asset(s) Process Note:

Obtain
security for Assets may be cross collateralized to other
approval / Y contracts. Means title or lien may not be able
other
direction to be released without affecting security on
Contracts? Customer’s other contract(s).
N
· End of Term – Paid as Agreed
· End of Term – Not Paid in Full
Select reason · Customer / Dealer Early Payoff
· Customer Returns < 30 days
for Termination · Repossessed Equipment Sold – Excess
· Repossessed Equipment Sold – Deficiency
· Collateral Substitution
· Pay one Asset of Multiple Asset Contract - Partial Payout
· Charge off – Proceed with further action
· Write Off
Quantify all · Trade In
billed invoices · Insurance Claim to Pay off Contract System Note:
‘Reason’ selection will drive formula used to
(rent, fees) calculate payout amount. Variables such as
outstanding interest, past due interest etc.

W/Shop Note:
Quantify Reason is also important for tracking why
early termination requests are made.
accrued late
interest charges Process Note:
*Calc may also differ from Loan/ Lease/ Hire
Purchase/ Factoring

Quantify all
Unbilled
invoices

Waiver of Approval for

interest (past Y waiver of
due or other)? charges

Update quote
variables, if
required
Insolvent Writeoff. Insuranc
PTP_Bal.
_Debt Value e

Process Note:
Save Close Out Close out quote values returned to the
quote relevant processes.

Term.Pa Dlr_Assi Litig.Quo System Note:

yout gn te Each quote is saved in the system. Multiple
quotes can be done for the same contract.

Close out to
N
proceed?

Accept the END quote

correct quote in process
system

System Note:
Quote User accepts the specific quote that they wish
Termination to proceed with from the list of prior quotes
acceptance
processes then created. System then generates required
creates billing and adjustments as per quote.
required
transactions
MANTAIN ACCOUNT - MA-6.Manual_Non.Accrual
ACTOR PROCESS NOTES
Non.Accr
Maintain ual
Account

YET TO BE DEFINED
Review in Accounting Workshops
COLLATERAL MANAGEMENT - CM-1.Surrender_Collateral
ACTOR PROCESS NOTES
Bankrupt
Collateral CM1
_Surr.
Management

Establish return W/Shop Note:

Legal Letter / docs customer signs for us to accept
location and surrender.
time with May want a closure quote incl likely fees
Customer

JDF Approval
for surrender, if
required

Notify dealer re
surrender, if
required

Perform close Dealer to W/Shop Note:

out quote for purchase asset Not a surrender if Dlr chooses to buy asset
Y from Customer directly. Price is determined by
Customer and from
Customer and Dealer, but JDF must be paid
Dealer Customer? out.

Dlr_Purc Confirm storage Status:

h location and Repossessed
costs

Receive and Accntg W/Shop Note:

Cash receipt Receive asset to JDF inventory
secure asset
and application
into storage

JDF Field exec

Contract Schedule
to inspect Y
Termination inspection
asset?

Legal Complete a
Process Note:
Inspection and photos assists with any future
condition dispute by customer on condition of asset at
report & photos when initially surrendered.

Attach docs and

photos to
system

Issue formal W/Shop Note:

notification to May issue a notice with cure information.
parties on INDIA has a presale notice.

Contract

Prepare for
remarketing

Surrende
r
COLLATERAL MANAGEMENT - CM-2.Repossession
ACTOR PROCESS NOTES
Bankrupt
Collateral CM2
_Repo
Management

Issue Process Note:

May be times we choose not to issue a repo
Repossession notice to warn customers in advance of our
Notices arrival

W/Shop Note:
IND:Loan recall notice (breach of terms of
Agreement). And repo notice.
Collate lien and Repo notice sent to all parties, could be
title info included in dunning.
Letter template approved by legal.

Approve Repo W/Shop Note:

CH: require legal to approve.
action to
commence Status:
= Repossessing Assets

SOX Control:
SOXREP1005 / REP100: accounts reviewed for
Locate every effort, and all legal req. have been met
Customer and
W/Shop Note:
Asset(s) India: Local police pre-notice, and post notice.
Avoid theft claims.

Inform local System Note:

Create repo request in system with approval
police, if process
required

W/Shop Note:
Assign to Dealer THAI: one time power of attorney to act on
or Agent JDF behalf.
CH & IND: Authority letter to agent / dlr.
CH: termination notice to leave with customer

Confirm storage
location and
costs

Litigatio Receive and

Asset recovery
n N Y secure asset
successful?
into storage

JDF Field exec

Schedule
Y to inspect
inspection
asset?

Complete a
condition
report & photos

Attach docs and

photos to
system

Add fee charges

to system by
type
W/Shop Note:
No requirement to give a condition report
copy to customer.
Issue formal Repo.Re CH&CHILE cross border: Dlr buyout option.
notification to Prepare for marketin
parties on remarketing g
Contract
COLLATERAL MANAGEMENT - CM-3.Remarketing
ACTOR PROCESS NOTES
Repo.Re
Collateral Surrende Insolv_R
marketin CM3
Management r emktg
g

Store Asset for Legal Process Note:

May be required to hold asset for a period to
mandatory allow customer to redeem by paying all
period arrears or payout

India: RTO reg. W/Shop Note:

certificate re- India: prefer not to bring to JDF name prior to
issue, if remarketing as I devalues asset – usually only
litigation would require bring to JDF name.
required

Establish asset
value, as is

Obtain quote W/Shop Note:

IND: approved valuer
for repairs, if CHILE: DLR will value
applicable THAI CHINA: dlr, JD equip div, or depreciation
methods used.
Limited secondary market info available.

Notify parties
to contract if
repair required

W/Shop Note:
Approve Thailand: would sell asset as is, not considered
repairs. Internal for any repairs.

W/Shop Note:
IND: 3 quotes from interested buyers to
Determine establish value
resale value
Legal

Accntg
Determine loss
expected

Legal Notify parties SOX Control:

SOXREP1005 / REP105: all legal docs
to contract of completed prior to sale
loss estimates

Notify Accounts
to update loss
provision

Determine
marketing
Legal channel

SOX Control:
SOXREP2020 / REP220: sale approved by
Market asset as appropriate personnel.
Sale Approved? SOXREP2020 / 225: repo asset sale recorded
required timely

N
Accntg Sell Asset and
receive Y
payment

Apply all
incurred fees to
contract

Establish final W/Shop Note:

loss, including China: has Dlr rsik risk sharing on the loss, in
all fees / some instances

charges

Establish
Surplus funds? Y payments to
relevant parties

Remaining
Notify parties Approve funds
Y balances
to the contract disbursement
owing?

Request
Determine JDF Notify parties
Payments to be
course of action to the contract
made Accntg

Sale_Sho Add comments

rtfall to System

END
COLLATERAL MANAGEMENT - CM-4.Insurance
ACTOR PROCESS NOTES
CM.4
Collateral
Management

Confirm
Insurance
details

Contact W/Shop Note:

Theft: delay of 6 months likely before claim
Fire / Damage Customer for Theft can be processed.
background

Contact Insurer. Obtain copies

Asset to be Confirm of police
repaired? coverage and reports, if
insured amount required

Insurer will Pay

N
asset loss?

W/Shop Note:
Contract Customer to make claim directly to insurance
N JDF as interested party on policy.
payout?
Any payment is to be made directly to JDF.
Chile: insurance co. will require invoice from
JDF to pay out where asset is lost totally.
Y Otherwise customer can deal directly with
insurer for general damage.

Insuranc Define contract Insuranc

e balances e
payable

Customer
Add notes to
N Shortfall? Y making shortfall
system
payment?

Y N

Payment Determine JDF

Cash Receipt
arrangements course of action

Insur_Sh
Contract to be ortfall
N Y
terminated?

Asset identifiers
changed? Set Contract
follow up to Termination
update info

Update INDIA: lien

Registration, if release letter
applicable for insurer

END
COLLATERAL MANAGEMENT - CM-5.Collateral_Subst.
ACTOR PROCESS NOTES

Collateral CM.5
Management

Confirm if
model is same
as prior

Define cash
adjustment, if
required

Original
Agreement to N W/Shop Note:
be amended? India: addendum to contract to update asset
identifiers.
Y

New contract or
W/Shop Note:
Confirm fees payment Specific fee for this type of modification. Also
N
and charges schedule incurred fees such as updating insurance
required? certificates.

Y
Prepare
Coll_Sub W/Shop Note:
relevant Not necessarily a rewrite. Terminate and new
st
Agreements contract.
and distribute May require an approval path or ID of this
scenario for visibility to JD etc.

New Asset
delivered,
Agreements
signed

Signed
Agreements
received

Fees and
Charges
payment
received

Update
Insurance Policy

Update Lien Release Liens

registrations for on previous W/Shop Note:
new asset asset Chile: Notary involved in registration changes.

Update
Registration
certificate, if
required

Update system
with new Asset
information
and notes

Notify parties END

IGNORE - CM-6.Add.Collateral
ACTOR PROCESS NOTES

Collateral CM6
Management

YET TO BE DEFINED
Considerations:
Additional assets or security are offered in exchange for tolerance of past
dues, deferrals, etc
IGNORE - CM-7.Insurance_Cover
ACTOR PROCESS NOTES

CM.7

Retrieve
insurance
details on
system

Contact
Contact Insurer
customer.
to confirm. N
Customer will
Policy in place?
Insure?

Receive N
evidence &
Y
Policy
information
Can JDF take
insurance on
Y collateral?

Insure. Charge
Customer’s N
account.

Update Policy
information to Determine JDF
System, if course of action
required

Insur.Co Insur_Fai
mpl l
LITIGATION & RECOVERY MANAGEMENT - LRM-1.Litigation
ACTOR PROCESS NOTES
Litigation & Litigatio Insolvent
Recovery LRM1
n Litig.
Management

W/Shop Note:
Review original Litigation could be running in parallel with
Agreements other activities such as repossession.

Process Note:
Collate supporting If litigation on a customer’s contract would
info. and typically be litigation on all customer’s
contracts with JDF.
recommendations

Escalate to
Legal, if
required

Approval of Status:
= Litigation.
Litigation Include sub status such as submission,
proceedings? awaiting court, date / time to calc 3rd party
lawyer fees etc

W/Shop Note:
Sec_Chq India: Present IND:>50,000 outstanding to warrant
Cheque proceeding with Litigation.
_Litig cheques,
bounces? IND: if security cheque dishonors, it becomes
section 138? a criminal offence. Used to pressure
customers.

Establish
Mediation W/Shop Note:
Consider Y mediator, and Out of court mediation with 3rd party is not
Y required prior?
Criminal time. typical in China, Thailand, India or Chile
Charges W/Shop Note:
N Litigation would trigger non accrual on all
Mediation customer’s accounts, even if not at non
N accrual thresh hold yet.
Successful?

Engage
Litigator / Y
internal Lawyer
Determine JDF
course of action
Litig_Qu Formalize Litig.Quo
ote monies owed & te
objectives Mediatio
n_shortf
all
Serve demand
on customer(s)
and guarantors

Court
Proceedings /
N Y
Ruling in JDF
favour?

Determine JDF
Appeal Ruling? N
course of action

Litig_Co
Y mpl.
JDF to bankrupt
Commence
Customer Y
Appeal process
ourselves?

N Determine JDF Litig_Fail

course of action
LITIGATION & RECOVERY MANAGEMENT - LRM-2.Insolvent
ACTOR PROCESS NOTES
Litigation &
Recovery LRM.2
Management

Customer is Status:
= Bankruptcy
declared
insolvent

Set flag on Stop Dunning W/Shop Note:

Stop dunning, billing and calls.
Customer(s) in notices and
system. calls

Determine
additional loss
provisions.
Notify Accounts

Assign to legal
council, if
applicable

Trustee or Prepare details Insolvent W/Shop Note:

Customer If individual bankrupt, collateral may be
N Administrator Y of Debt owed _Debt
Bankrupt repossessed.
appointed? to JDF If company, company assets may be
controlled by liquidator

Accntg JDF collateral to Insolvent

Stop Billing, if be retained by _Debt
applicable Administrator?

Y N
Customer Arrange Insolv_R
surrender collection of emktg
Collateral? collateral

N Y

Bankrupt Bankrupt
_Repo _Surr. Administrator
Administrator
to continue
Y to clear all past Y
rental
due payments?
payments?

N N
Creditor
settlement Cash Receipt
offer available?

Offer Approved
by JDF?

Add comments
and notes to
system

Other Litigation
possible?

Insolvent Insolv_C
Determine JDF
Litig. Y N ompl
course of action
IGNORE - LRM-3.Assignment
ACTOR PROCESS NOTES
Litigation &
LRM3
Recovery
Management

YET TO BE DEFINED
Considerations:
Assigning debt to the dealer
LITIGATION & RECOVERY MANAGEMENT - LRM-4.Loss_Recovery
ACTOR PROCESS NOTES
Litigation & Litigatio
LRM4
Recovery n
Management

YET TO BE DEFINED
Considerations:
Asset recovered, sold and funds received.
Asset unrecoverable within a prescribed tolerance.
Process Note:
Other collateral has been recovered and liquidated. Loss recovery payments to Dlr if reserve
Dealer reserve has been debited. taken
Dealer or 3rd party recourse has been executed, and funds
applied.
Customer and or guarantors will not pay total amount
outstanding.
Debts have been crystalized on JDF books (write offs etc)
Court proceedings are to be undertaken to force debt
recovery from liable parties.
MANTAIN ACCOUNT - CH1-DlrPastDues
ACTOR PROCESS NOTES
Decease
CH1 d_BuyOu
t

Contract Contract
arrears 60~90 N arrears 90+
days? days?

Quantify all Dlr_Assi Dlr_Assi

Quantify close
past dues and gn gn
out value
late interest

Invoice Dealer Invoice Dealer

for arrears for payout of
payments contract

Dealer pays? N N Dealer pays?

W/Shop Note:
Gets added to an offset account, Cash received Cash received
does not get applied to contract. and stored in ?? and applied to
Only for C&F GL contract

Add comments Add comments

to system to system

System Note:
System still System unable to calculate past due
Contract stays
tracks contract interest if payment cleared or contract
in collections
payment paid out.
system
schedule?
LITIGATION & RECOVERY MANAGEMENT - IN1_Sec.Cheque
ACTOR PROCESS NOTES
Litigation & Sec_Chq
IN.1
Recovery _Litig
Management

Identify Eligible
Cases (>90d)

Assign to Legal
team

Action
approved by
Div Bus. Mgr

Present
Security
Cheques

Cheque
Dishonor notice
from Bank

Issue Demand
Notices <30d

Customer pays
N Y Closed
<15d?
Process Note:
Assemble Docs include:Bank return memo,
documents & returned cheque, Statement of
info required Account, outstanding invoices,
<30d: raise
Loan Agreement, all relevant
Complaint
comms
under section
138

Warrant issued
by Court
(3~6m)

Customer
N appears in
Court? Y

NBW issued

Customer
appears in Y Court hearing
Court?

Proclamation
Judgement
Order required?

Procure orders IN:Cheq

Determine JDF
for property ue. Lit
course of action
(>12m)
IGNORE - Template
ACTOR PROCESS NOTES