Create a Process Enforcement

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Create a Process Enforcement

You can create multiple process enforcements (PEs) and apply these to contacts and accounts as required. The PEs you create, revoke or expire are finally maintained in CL Common. If you are also using CL Lease, you can use the same PEs across CL Loan and CL Lease.  A PE may be created for a specific time period, or be defined as a non-expiring PE. Each PE defines a list os actions that are performed by the system when the PE is applied to the loan contracts of a contact or account, and a list of actions that must be performed when the PE is revoked or expires, in order to revert to the original terms of the contract.    

Prerequisites

The following are the prerequisites to creating a process enforcement:

Steps

Perform the following steps to create a process enforcement:

  1. Log in to your Salesforce account.

  2. Go to Servicing Configuration, Misc., Manage, Create Process Enforcement.

  3. In the Create Process Enforcement page, specify the Process Enforcement Name. For example, SCRA.

  4. Specify the Priority of the process enforcement. If multiple PEs are applied for a contact or account, the terms defined for the PE with higher priority take prdcedence. Here, 1 indicates the highest priority. 

  5. Select the Active checkbox to enable the PE for use.

  6. Select the Process Enforcement Actions, and specify whether these must be performed on application or expiry of the PE. For example, for SCRA, refer to the following table for the supported actions for each PE state. You can apply one or all these actions: 

    Action Applicable on Description
    Change Interest Rate - Change Payment Apply Interest rate is changed to 6% if original interest rate is higher. New payment schedule is generated, keeping the maturity date same, and changing the payment amount.
    Change Interest Rate - Change Tenure Apply

    Interest rate is changed to 6% if original interest rate is higher. New payment schedule is generated, keeping the current payment amount (Principal + Interest ) same. Maturity date is not modified in this case, therefore, interest is recovered only up to the maturity date.

    Note:

    You can select only one of the change interest rate actions - Change Payment or Change Tenure. If you select both, the latest selection is applied by the system.
    Revert Interest Rate - Change Payment Expiry Interest rate is reverted to the value prior to enforcing the PE and schedule is generated as per that rate. However, if any reschedule action has been performed on a contract after PE Application, no change of interest rate occurs for that contract.
    Revert Interest Rate - Change Tenure Expiry

    Interest rate is reverted to the value prior to enforcing the PE and schedule is generated as per that rate. However, if any reschedule action has been performed on a contract after PE Application, no change of interest rate occurs for that contract.

    Note:

    You can select only one of the revert interest rate actions - Change Payment or Change Tenure. If you select both, the latest selection is applied by the system.
    Suspend Charges Apply All charges on the contact or account's loan contracts are suspended from the PE start date till the PE expiry date. 
    Enable Charges Expiry All charges on the contact or account's loan contracts are re-enabled from the PE expiry date. 
    Suppress Credit Reporting Apply Reporting to credit bureaus for all the contracts of the contact or account is suspended.
    Resume Credit Reporting Expiry Reporting to credit bureaus for all the contracts of the contact or account is resumed.

  7. Specify the Process Enforcement Constraints. These constraints govern the actions on existing and new contracts for an active PE. For SCRA, for example, use the following table:

    Constraint Type Value
    Set Maximum Interest Rate Decimal 6.0
    Suspend Charges Boolean True
    Suppress Credit Reporting Boolean True

  8. Click Save.