Debt is repaid
When a client's debt is about to be repaid, SWIFTT automatically:
- calculates the amount of the final deduction (if different from regular offset)
- stops the deduction from benefit and
- issues a letter to the client advising of this action
Client has other debts
Where a client is repaying more than one debt, a weekly report called Debts Being Cleared Potential Adjustment is available for you in CM Reports. The report identifies when a debt is about to be repaid. You can access the Debts Being Cleared Potential Adjustment report weekly through CM Reports in Briefcase.
You can increase the recovery rate of the client's other debts by the amount of the deduction for the debt that is about to be repaid. There is no requirement to contact the client about this change. To avoid confusion for the client you will also need to suppress the SWIFTT generated letter.
Example
The client has a $30 per week offset which is being split to repay two debts at $15 per week each. One of the debts is about to be repaid and has a balance of $2.50, the other debt still has a balance of $350. To retain the offset at $30 per week over the next two pay periods, adjustments will need to be made to the offset rates of the debts as follows:
Week 1 Adjustments:
increase offset of the $350 debt to $27.50
decrease offset of the $2.50 debt to $2.50
Week 2 Adjustments:
increase offset of the $350 debt to $30
the other debt has been fully repaid
The client's debt recovery is maintained at the same rate without affecting the client's weekly benefit rate.
Note all clients with offsets greater than $40 per week have been excluded from this report.
For more information see:
