Loan Status Monitoring

This is how we automatically update the status of loans in the Geek Pay system. GeekPay loans can have a number of payment statuses based on payments made. 

All of those statuses are outlined in our loan documentation. 

This document outlines how loans end up in each of their respective states in detail and how our automated system changes those statuses.

Types of Status Changes

There are six types of status changes for loans:

• Good Standing --> Grace Period - A few times a day our system checks for loans that have a current billing statement with an overdue balance. As soon as it finds any for which the loans are in good standing, those loans will immediately be transitioned to a grace period. During this phase, we will send an email notification to the borrower to let them know that their loan is now overdue and they will incur charges if they don't pay before the allotted grace period duration expires. At this point, we also consider the loan past due (this will show up as "Past Due Since" on the loan overview page.
• Grace Period --> Late - Once a day we check for loans that have been late beyond their grace period duration. At this point we do three things: (1) Update the status of the loan to late, (2) Generate a late fee as originally specified when you first created the loan, and (3) Send an email to the borrower notifying them that the loan is now late and they have been charged a fee.
• Late --> Default - We will continue generating billing statements and attempting to charge each month on the due date for loans with payment accounts until the loan is in default. However, no more late fees will be generated (as the loan is technically late at this point). When you first create a loan you define the number of days you'd like to wait before the loan defaults. Once a day we check late loans to see if they have gone beyond the number of days for defaulting. If they have we do two things: (1) Change the status to default, and (2) Send the borrower a notice that the loan is in default.
• Grace Period, Late, Default --> Good standing - Every day we check the current billing statements to see if there is no longer a past due amount. If the current balance is less than or equal to the regularly scheduled payment amount, we'll transition the loan to good standing. When this occurs, we do two things: (1) Update the loan status to good_standing, and (2) Send the borrower a notice thanking them for the payment.
• Good Standing --> Paid Off - Every day we check for loans for which there is no longer a balance. We then do two things: (1) Update the loan status to paid_off, and (2) Send the borrower a thank you letter for paying off their loan.
• Any Status --> Paused - Lenders can choose to pause loans. The term pause is somewhat of a misnomer because you can't un-pause a loan. Stop may be a better word. In this circumstance, we don't do anything aside from switch the status to paused and we no longer.