Payments and Remittances

Recovered funds sit in a trust account separate from JSD's operating account. That money is yours from the moment a debtor payment clears. It is not used for payroll or operating expenses, and JSD earns no interest on it while it is held.

Money collected in house is held at least two weeks so payments clear. A debtor's check can be returned unpaid well after it appears to have settled, and remitting against funds that have not cleared would require a correction on a later cycle.

Remittances are sent on Tuesdays. Each covers a defined collection period, and every period closes at month end, so a period stays inside a single calendar month. Most run about two weeks. A month ending partway through a period produces a shorter one with its own remittance.

Each remittance consolidates every payment that cleared during the period, across all of your placed accounts, into one transfer.

Funds are sent by check, ACH, or wire transfer, set to your preference.

Clients are set up on an offset basis, shown as ATC-OFFSET on your remittance advice. Offset means the money JSD collects for you and the contingent fees you owe on payments debtors sent you directly settle against each other in one transaction, across every account you have placed.

Every recovery carries a contingent fee at the rate in your service agreement, regardless of which party the debtor pays. How it settles depends on whether JSD is holding money for you when the period closes.

When JSD has collected payments, the contingent fee comes out of the recovery and the advice shows the calculation on each line.

When a debtor has paid you directly, there is nothing for JSD to remit, so the contingent fee on that payment is invoiced. This is common.

When both happen in the same period, they settle against each other across every account you have placed. Recoveries are totaled, contingent fees owed on direct payments are totaled, and the difference determines the check.

Debtors sometimes pay a creditor directly. Tell your account representative with the amount and the invoice it applied to.

Reporting it stops collection activity on money you already hold and lets the contingent fee owed settle on your next remittance.

Each remittance comes with an advice itemizing every payment in the period. A summary block carries the period totals and check number, and a detail table lists each payment as its own line.

Each line shows:

• Transaction number and payment date
• Check number, or the method where funds arrived by wire
• Debtor name, debtor ID, and state
• Your customer reference
• Gross amount received
• Contingent fee amount and rate, printed on the advice as Comm Amt and Comm Rate
• Attorney fees and costs where they apply
• Net amount remitted

Your customer reference appears on every line, carried through from placement as you supplied it, whether that is an invoice number or a record ID out of your CRM.

The advice is a PDF. A spreadsheet version is available on request.

An invoice covers the contingent fee owed on payments a debtor sent you directly. Where JSD is not holding funds for you, it is the only document involved.

Invoices go out weekly. Each payment generates its own invoice, so a week with several direct payments produces several invoices. Clients seeing that volume can be set up for batch invoicing, where a single invoice number covers multiple payments.

The invoice shows:

• Invoice number, invoice date, and your account number
• Agency client file number
• The debtor payment being billed, with your customer reference
• Contingent fee calculated against that payment
• Total due