The debt collection process is a structured sequence of activities designed to manage and resolve outstanding claims efficiently. Riverty offers a streamlined and standardized approach to debt collection through our Collection API, enabling clients to manage their claims with ease, transparency, and consistency. This process involves various stages, from the initial claim handover to the final closure of a claim, ensuring that each claim is handled effectively and that all relevant actions and transactions are accurately recorded.
Understanding the collection process is essential for both technical and business users, as it provides insights into how claims are managed, the roles of different endpoints, and the actions that can be taken at each stage. We have outlined the key components of the collection process, focusing on the lifecycle of a claim and the various interactions available through our Collection API.
The claim lifecycle begins with the Claim Handover. This is the initial step where clients submit claims using using our Collection API. During this stage, essential claim details are transferred, including debtor information and claim specifics. The submission must meet minimum requirements, such as the customer information, claim amount, and any supporting documentation. Check our documentation on creating a claim to learn more.
Once a claim is handed over, it enters the Validation stage. Here, Riverty's system checks that all the requirements for creating a claim are met. This involves validating the data against predefined business rules and ensuring completeness. If the claim meets the validation criteria, it will be confirmed. Otherwise, it may be rejected.
Clients can actively monitor the status of their claim by calling the transactions endpoint. The response will indicate whether the claim has been confirmed or rejected, enabling clients to take corrective actions if necessary. Read our documentation on claim processing outcomes to learn more.
After successful validation, the claim moves to the Claim Generation stage. In this stage, confirmed claims are processed and officially registered in our system. The system generates the necessary documents, such as accounting documents, to record the claim.
Please Note: An accounting document is generated upon successful claim registration and provides a financial record of the transaction.
The next stage involves Communication. Once a claim is generated, Riverty takes proactive steps to communicate with the debtor. Dunning letters are sent to the debtor, informing them of their outstanding debt and providing payment instructions. These communications are essential to ensure that debtors are aware of their obligations and to facilitate timely payment.
The Payment stage is where payments towards outstanding claims are handled. There are two primary scenarios in this stage:
Read our documentation of creating a payment to learn more.
The final stage in the lifecycle is Settlements and Closure. If the debtor completes payment of their outstanding debt, the claim is considered settled. The system will then close the claim, indicating that no further action is required. A confirmation of closure will be sent to the client, and the status of the claim will be updated to reflect its settlement.
Please Note: Settlement of debt by customers is not the only reason to close a collection process. Claims can also be closed due to other reasons, such as liquidation, fraud, or other exceptional circumstances. For a detailed understanding of the various reasons a for closing a claim, clients can refer to our documentation on closing.
Between the generation of a claim and its closure, various other actions can be performed on the claim, such as recalls, cancellations, and credit waivers. These actions are essential for managing the claim’s status and adapting to changes in the debtor's payment situation. For a comprehensive list of all available endpoints, please refer to our API specification page.
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