Discontinuance of Collections and Rejection of Payments after the Effective Date. a. Within five business days after the Effective Date, the Servicer (i) will cease issuing monthly account statements to the Affected Consumers, whether by mail or by electronic means; (ii) will deactivate all active recurring and scheduled payments, and cancel all automatic payment arrangements, relating to the Affected Loans (whether through ACH or payment cards, via the IVR or the Payment Portal, or otherwise); and (iii) will initiate additional commercially reasonable efforts not to accept any payment received after the Effective Date on any Affected Loan, including by arranging for blocking or automatic reversal of ACH payments and bank transfers. b. Upon the Effective Date, the Servicer will cease remitting payments received for Affected Loans to PEAKS, the Secured Party or any assignee of the Affected Loans. In the event the Servicer remits any payments received for Affected Loans to PEAKS and/or the Secured Party on or after the Effective Date, then PEAKS and/or the Secured Party will return such payments to the Servicer within 10 (ten) business days of knowledge of receipt. c. Within 30 days of the Effective Date, PEAKS, the Lender Trustee, the Secured Party, and the Servicer will discharge all Affected Loans and will cancel all outstanding balances of all Affected Loans, including principal, interest, fees and any other amount due and owing. d. In the event that a check has been received by the Servicer’s automated lockbox, or that a payment otherwise has been made for which a refund check is necessary (for example, payment by cash or an electronic payment sent through a bill pay service from the Payor’s banking institution), the Servicer, within 30 days after receipt of the payment and identification of the correct PEAKS account, will mail a refund check, by first class U.S. mail, to the most recently available postal address contained in the Servicer’s system of record for the Payor, together with a Letter to Payor with Return of Post-Effective Date Payment, in the form of Exhibit E hereto. e. If any refund check and Letter to Payor with Return of Post-Effective Date Payment sent pursuant to Section IV.d above is returned as undeliverable, the Servicer, within 30 days after receiving the returned check and Letter to Payor, will use commercially reasonable efforts to obtain the Payor’s updated mailing address and, if successful, then will re-send the check and the Letter to the Payor. The commercially reasonable efforts will include: (i) using a commercial skip tracing service to obtain an updated address for the Payor; (ii) sending an email to the Payor’s email address on file and requesting an updated mailing address; and (iii) calling the Payor using his/her telephone number(s) on file, verifying his/her identity, and requesting an updated mailing address. Assuming the foregoing yields new mailing address information, the Servicer will make up to three attempted deliveries of the returned check and the Letter to Payor with Return of Post-Effective Date Payment to each Payor. f. If any refund check sent pursuant to Section IV.e above, and not returned as undeliverable, is not deposited or cashed within 30 days, the Servicer will use commercially reasonable efforts over the ensuing 30 days to contact the Payor, at least two additional times, by email or by telephone, in order to advise the Payor to deposit or to cash the check. g. The Servicer will prepare a list of all Affected Loan payments received after the Effective Date that were not able to be returned, reversed or otherwise effectively rejected. h. Any payment on an Affected Loan that should be refunded but, notwithstanding the efforts made pursuant to Sections IV.e and IV.f above, remains undeliverable, undeposited or uncashed, or that is received more than 150 days after the Effective Date, (i) will be paid to the State of the Payor’s last known residence, if that State has so required in a Settlement agreement between that State and the PEAKS Parties, in accordance with the terms specified in that agreement, or, (ii) if the payment qualifies as Unreturnable Funds, will be paid by wire transfer to the Bureau or to the Bureau’s agent, in accordance with the Consent Order. Prior to any transfer of funds pursuant to this paragraph, the Servicer will stop payment on any outstanding refund check representing those same funds. Under no circumstances will the Servicer be required to make more than one payment on account of any Affected Loan payment received after the Effective Date.
Appears in 5 contracts
Samples: Assurance of Voluntary Compliance, Assurance of Voluntary Compliance, Assurance of Voluntary Compliance
Discontinuance of Collections and Rejection of Payments after the Effective Date. a. Within five business days after the Effective Date, the Servicer (i) will cease issuing monthly account statements to the Affected Consumers, whether by mail or by electronic means; (ii) will deactivate all active recurring and scheduled payments, and cancel all automatic payment arrangements, relating to the Affected Loans (whether through ACH or payment cards, via the IVR or the Payment Portal, or otherwise); and (iii) will initiate additional commercially reasonable efforts not to accept any payment received after the Effective Date on any Affected Loan, including by arranging for blocking or automatic reversal of ACH payments and bank transfers.
b. Upon the Effective Date, the Servicer will cease remitting payments received for Affected Loans to PEAKS, the Secured Party or any assignee of the Affected Loans. In the event the Servicer remits any payments received for Affected Loans to PEAKS and/or the Secured Party on or after the Effective Date, then PEAKS and/or the Secured Party will return such payments to the Servicer within 10 (ten) business days of knowledge of receipt.
c. Within 30 days of the Effective Date, PEAKS, the Lender Trustee, the Secured Party, and the Servicer will discharge all Affected Loans and will cancel all outstanding balances of all Affected Loans, including principal, interest, fees and any other amount due and owing.
d. In the event that a check has been received by the Servicer’s automated lockbox, or that a payment otherwise has been made for which a refund check is necessary (for example, payment by cash or an electronic payment sent through a bill pay service from the Payor’s banking institution), the Servicer, within 30 days after receipt of the payment and identification of the correct PEAKS account, will mail a refund check, by first class U.S. mail, to the most recently available postal address contained in the Servicer’s system of record for the Payor, together with a Letter to Payor with Return of Post-Effective Date Payment, in the form of Exhibit E hereto.
e. If any refund check and Letter to Payor with Return of Post-Effective Date Payment sent pursuant to Section IV.d above is returned as undeliverable, the Servicer, within 30 days after receiving the returned check and Letter to Payor, will use commercially reasonable efforts to obtain the Payor’s updated mailing address and, if successful, then will re-send the check and the Letter to the Payor. The commercially reasonable efforts will include: (i) using a commercial skip tracing service to obtain an updated address for the Payor; (ii) sending an email to the Payor’s email address on file and requesting an updated mailing address; and (iii) calling the Payor using his/her telephone number(s) on file, verifying his/her identity, and requesting an updated mailing address. Assuming the foregoing yields new mailing address information, the Servicer will make up to three attempted deliveries of the returned check and the Letter to Payor with Return of Post-Effective Date Payment to each Payor.
f. If any refund check sent pursuant to Section IV.e above, and not returned as undeliverable, is not deposited or cashed within 30 days, the Servicer will use commercially reasonable efforts over the ensuing 30 days to contact the Payor, at least two additional times, by email or by telephone, in order to advise the Payor to deposit or to cash the check.
g. The Servicer will prepare a list of all Affected Loan payments received after the Effective Date that were not able to be returned, reversed or otherwise effectively rejected.
h. Any payment on an Affected Loan that should be refunded but, notwithstanding the efforts made pursuant to Sections IV.e and IV.f above, remains undeliverable, undeposited or uncashed, or that is received more than 150 days after the Effective Date, (i) will be paid to the State of the Payor’s last known residence, if that State has so required in a Settlement agreement between that State and the PEAKS Parties, in accordance with the terms specified in that agreement, or, (ii) if the payment qualifies as Unreturnable Funds, will be paid by wire transfer to the Bureau or to the Bureau’s agent, in accordance with the Consent Order. Prior to any transfer of funds pursuant to this paragraph, the Servicer will stop payment on any outstanding refund check representing those same funds. Under no circumstances will the Servicer be required to make more than one payment on account of any Affected Loan payment received after the Effective Date.,
Appears in 1 contract
Samples: Assurance of Voluntary Compliance
Discontinuance of Collections and Rejection of Payments after the Effective Date. a. Within five business days after the Effective Date, the Servicer (i) will cease issuing monthly account statements to the Affected Consumers, whether by mail or by electronic means; (ii) will deactivate all active recurring and scheduled payments, and cancel all automatic payment arrangements, relating to the Affected Loans (whether through ACH or payment cards, via the IVR or the Payment Portal, or otherwise); and (iii) will initiate additional commercially reasonable efforts not to accept any payment received after the Effective Date on any Affected Loan, including by arranging for blocking or automatic reversal of ACH payments and bank transfers.
b. Upon the Effective Date, the Servicer will cease remitting payments received for Affected Loans to PEAKS, the Secured Party or any assignee of the Affected Loans. In the event the Servicer remits any payments received for Affected Loans to PEAKS and/or the Secured Party on or after the Effective Date, then PEAKS and/or the Secured Party will return such payments to the Servicer within 10 (ten) business days of knowledge of receipt.
c. Within 30 days of the Effective Date, PEAKS, the Lender Trustee, the Secured Party, and the Servicer will discharge all Affected Loans and will cancel all outstanding balances of all Affected Loans, including principal, interest, fees and any other amount due and owing.
d. In the event that a check has been received by the Servicer’s automated lockbox, or that a payment otherwise has been made for which a refund check is necessary (for example, payment by cash or an electronic payment sent through a bill xxxx pay service from the Payor’s banking institution), the Servicer, within 30 days after receipt of the payment and identification of the correct PEAKS account, will mail a refund check, by first class U.S. mail, to the most recently available postal address contained in the Servicer’s system of record for the Payor, together with a Letter to Payor with Return of Post-Effective Date Payment, in the form of Exhibit E hereto.
e. If any refund check and Letter to Payor with Return of Post-Effective Date Payment sent pursuant to Section IV.d above is returned as undeliverable, the Servicer, within 30 days after receiving the returned check and Letter to Payor, will use commercially reasonable efforts to obtain the Payor’s updated mailing address and, if successful, then will re-send the check and the Letter to the Payor. The commercially reasonable efforts will include: (i) using a commercial skip tracing service to obtain an updated address for the Payor; (ii) sending an email to the Payor’s email address on file and requesting an updated mailing address; and (iii) calling the Payor using his/her telephone number(s) on file, verifying his/her identity, and requesting an updated mailing address. Assuming the foregoing yields new mailing address information, the Servicer will make up to three attempted deliveries of the returned check and the Letter to Payor with Return of Post-Effective Date Payment to each Payor.
f. If any refund check sent pursuant to Section IV.e above, and not returned as undeliverable, is not deposited or cashed within 30 days, the Servicer will use commercially reasonable efforts over the ensuing 30 days to contact the Payor, at least two additional times, by email or by telephone, in order to advise the Payor to deposit or to cash the check.
g. The Servicer will prepare a list of all Affected Loan payments received after the Effective Date that were not able to be returned, reversed or otherwise effectively rejected.
h. Any payment on an Affected Loan that should be refunded but, notwithstanding the efforts made pursuant to Sections IV.e and IV.f above, remains undeliverable, undeposited or uncashed, or that is received more than 150 days after the Effective Date, (i) will be paid to the State of the Payor’s last known residence, if that State has so required in a Settlement agreement between that State and the PEAKS Parties, in accordance with the terms specified in that agreement, or, (ii) if the payment qualifies as Unreturnable Funds, will be paid by wire transfer to the Bureau or to the Bureau’s agent, in accordance with the Consent Order. Prior to any transfer of funds pursuant to this paragraph, the Servicer will stop payment on any outstanding refund check representing those same funds. Under no circumstances will the Servicer be required to make more than one payment on account of any Affected Loan payment received after the Effective Date.,
Appears in 1 contract
Samples: Assurance of Voluntary Compliance/Assurance of Voluntary Discontinuance
