The present invention is a system that includes a first financial management
system handling receivables and a second financial management system handling payables.
The receivables system sends debt offset information to an offset payment system
and the payables system sends payment information to the offset payments system.
The offset payment system either makes a payment or offsets the payment with the
debt. Both of the financial management systems receive offset information from
the offset payment system. The system designates, in the respective separate receivables
and payables systems, debt and payments that are suitable for offset using threshold
criteria such as age, amount, party, number of notices of delinquency, etc. The
system allows administrative fees and other charges, such as interest and penalties,
to be added to the debt as well as the limiting of the percentage applicable to
the offset at the time of the referral. During the referral of the debt to the
offset payments system, the debtor as well as other parties, such as credit bureaus,
are informed or notified of the delinquent debt and the referral information can
be stored in a data warehouse for later analysis.
