General
TRUE or FALSE:
As long as a CAT populates on STRATA, the customer qualifies for that CAT.
FALSE - Manual checks must be performed to ensure ALL criteria is met
If offering an IRR on a delinquent account where a Re-Age of 2 months is required. What is the maximum IRR period that can be offered?
4 months.
Total Relief Period (Re-Age + IRR) cannot exceed 6 months
A ___________ is a last resort option (after exhausting all other CATS/negotiation) for customers who are experiencing long term hardship and cannot maintain regular payments but can do a lump sum payment.
Settlement
The ARP will defer up to 3 months of arrears and can help lower a customer's regular loan payments by:
a. extending the amortization period
b. offering an interest rate reduction
c. waiving a portion of the principal balance
d. all of the above
a. extending the amortization period
*Until further notice, DO NOT offer interest rate reduction with ARP (system limitations)
TRUE or FALSE: Settlements can be offered on SECURED accounts
FALSE - Settlements can only be offered on UNSECURED Revolving Credit and Loans
When offering a CAT within your authority limit, the account should be added/approved on STRATA and left in F90 EXCEPT which CAT?
SPA - needs to be routed to F21 (Retail) OR F20 (Louis Dakwar) (Business)
For an account that is 80 DPD, what is the Willingness to Pay criteria to offer a Re-Age to clear/reset the arrears to $0 to bring the account UTD?
A PTP must be taken for 1 full monthly payment within the next 30 days
_______ is the only CAT that will have a permanent impact on the customers Credit Bureau.
Settlement - reflects as "Settled in Full"
After a PEP is offered to defer the arrears to the end of the loan, the customers regular payments going forward will:
a) increase
b) remain the same
c) decrease
c) remain the same
(because the amortization period is extended by the number of payments deferred)
What resource/tool is required to be used to assist with checking manual qualifying criteria, provide disclosures and enter notes on CACS for any CAT offered?
ACW Notes Template
CATS can assist customers by:
a) Curing the Arrears amount
b) Curing the Overlimit amount
c) Reducing future payments
d) All of the above
e) a) and C
e) a) and C
CATS can only cure arrears and/or reduce future payments.
The customer must make payments to bring their account under the limit/close the account to eliminate over limit amounts
List all the available SHORT TERM CATS for Credit Cards/LOC's (3)
1. SPA
2. Re-Age
3. IRR
An account must be/will be closed/revoked when offering which 2 CATS?
1. URP
2. Settlement
The SPA, ST Auto Reduction and ARP can be offered on:
a) Direct Loans
b) Indirect Loans
c) Indirect Auto Loans (Security code 027/028)
d) All of the Above
e) b) & c)
c) Indirect Auto Loans (Security code 027/028)
A customer can maintain regular payments but unable to pay any of the arrears.
Which 2 CATS will bring the account up to date by resetting/deferring the arrears so that it is brought back to $0.
Re-Age & PEP
List all the MONTHLY EXPENSE items that must be obtained from the customer when completing the streamlined/modified TDS
1.Total Monthly Expenses:
•Primary Mortgage Payment
•Other Mortgage / Rental Payment
•Auto Loan 1
•Auto Loan 2
•Credit Card
•Unsecured Loans
Line of Credit
Based on advisor authority limits, what is the lowest IRR rate that can be offered to a customer for:
a) Fixed Rate Credit Card
b) Variable Rate Line of Credit
IRR must be >10%
a) FIXED: 12%
b) VARIABLE: PRIME + 5% for variable = 10.95%
PRIME 5.95% as of 12/05/2024
The ULOC Minimum Payment will reduce the minimum monthly payment of an account currently set at _% or _% of the outstanding balance to ________.
2%; 3%; Interest Only
If offering a SPA for a SPL account with an Arrears of $2050. The customer must make at least $_____ and Scotiabank will waive $_____ to bring the account up to date.
$1050; $1000
For SPL, customer must make at least 50% of arrears or $50, whichever is greater (Max SPA amount: lesser of 50% or $1000)
What are the authority limits (% of arrears that can be waived and $ amount) when offering a SPA for:
1. Revolving Credit
2. Indirect SPL (Auto loan)
1. KS Products: up to 75% of total arrears or $1000
2. Indirect SPLs: up to 50% of total arrears or $1000
Name all the 3 Resources/tools that an advisor should utilize when offering CATS before contacting the VDN Line for assistance.
1. STRATA
2. ACW Notes Template
3. The Cure (CAT Hub)
If offering a SPA for a Revolving Credit account with an Arrears of $2500. The customer must pay atleast $_____ and Scotiabank will waive $_____ to bring the account up to date.
$1500; $1000
For Credit Cards/LOC/Business Accounts, customer must make at least 25% of arrears or $50, whichever is greater (Max SPA amount: lesser of 75% or $1000)
If a URP is offered on an account that is 175 DPD with a total outstanding balance of $20,000. What is the minimum URP fixed payment amount?
$20,000 / 84 months = $238.10
URP repayment period:
CPD 0-3 (0-119 DPD) – 60 months (5 years)
CPD 3-6 (120-209 DPD) – 84 months (7 years)
If offering the ARP where the remaining amortization is 69 months, we can extend the amortization by ____ months to lower regular payments going forward.
26 months [95 – 69 = 26]) -
We use 95 as the current cycle may have started.
We can extend amortization by up to 36 months.
However, the remaining amortization including the amortization extension offered cannot exceed 96 months
After completion, which CAT would have a negative Credit Bureau impact on the Customer's Credit Bureau?
How would it be reported?
Settlement.
Customer must be advised that it will be reported on the Credit Bureau as “Settled in Full.”