Simulate Delinquency

The Delinquency Simulator lets you view a Financial Account's current delinquency status and receivables by simulating past purchase and payment scenarios. In the Test Environment, this helps understand delinquency information and notification events.

The Delinquency Simulator allows you to test the following:

• Viewing the Financial Account's delinquency status and balances by billing cycle for agent servicing, portfolio analysis, and collections strategies
• Adding the DELINQUENT and DELINQUENT_SUSPENDED Financial Account Attributes when the Account becomes delinquent and receiving the associated notification events
• Removing the DELINQUENT and DELINQUENT_SUSPENDED Financial Account Attributes when the Account becomes current and receiving the associated notification events

To begin simulating delinquencies, you must issue a new Financial Account on your Credit Card Product. The Financial Account cannot have a closed billing cycle.

Use the following steps to simulate delinquency in your Test Environment:

1. Issue a new Financial Account on an existing approved Application and set the Financial Account’s credit limit.
2. Issue a Payment Card to the Financial Account.
3. To create receivables, you must simulate and clear the desired authorizations, resulting in a simulated billing statement. The simulated billing statement will not include any pending authorizations.
4. Use the Account Aging Simulation to generate a statement and age the Financial Account you simulated in Step 2.
5. Optional - To clear the Financial Account's delinquency, make a payment for the past due amount.

You can repeat steps 3 and 4 to generate additional past billing statements. You must generate simulated billing statements from oldest to newest. For example, you must start by generating the oldest of the three to generate three billing statements.

To simulate multiple billing statements, you must generate simulated billing statements from oldest to newest. You cannot simulate the same past billing cycle more than once.

You can use the Account Aging Simulation once you have simulated receivables and payments on a Financial Account. To ensure your simulation results in a delinquent Financial Account, ensure the OUTSTANDING_BALANCE_PAYABLE ledger on the Financial Account is greater than $0.

You must provide the number of past billing cycles you want the simulated billing statement to generate. The simulator will consider the unique calendar days of the Financial Account’s due date, billing period start date, and billing period end date for a past billing cycle’s statement:

• To add the DELINQUENT Attribute to the Financial Account, shift the current billing cycle with a positive OUTSTANDING_BALANCE_PAYABLE back 2 or more cycles
• To add the DELINQUENT_SUSPENDED Attribute to the Financial Account, shift the current billing cycle with a positive OUTSTANDING_BALANCE_PAYABLE back 5 or more cycles.
• To remove the DELINQUENT and DELINQUENT_SUSPENDED Financial Account Attributes and make the account current, post a payment greater than or equal to the OUTSTANDING_BALANCE_PAYABLE.

The Financial Account you are performing the simulation for must be in its first billing cycle and cannot have a closed billing statement. We recommend issuing a new Financial Account at the time of the simulation.

Use the following mutation to simulate account aging:

Repayments may take up to 5 minutes to reflect on a Financial Account’s delinquency status.

You can simulate a repayment if your simulation results in a delinquent financial account. See Scheduled Repayments for more information.

In the Live Environment, the Highnote team will close an account with a SUSPENDED status due to a charge-off event.

You can use the Delinquency Simulator in the Test Environment to simulate charging off a Financial Account. Use the steps outlined in How to Simulate Delinquency and in Step 4, shift an unpaid statement balance due back at least seven billing cycles to make the Financial Account's totalDaysDelinquent >= 180 days.

At this time, the Financial Account Attribute of CHARGE_OFF will be added and the Financial Account status will be set to SUSPENDED.