Loan Management: What does the "Attention" note on Active Loans page indicate?

What Triggers the Attention Note?

When a loan's automatic ACH processing is experiencing severe issues, you will see one or more of the following notes in the Attention column.  Otherwise, this column is usually blank.  

• Transfer Failed
  Two consecutive ACH payment transfers have returned a R01 ACH fail code.  Or the most recent ACH payment transfer has returned one of the following ACH fail codes: R02, R03, R04, R05, R07, R10, R11, R13, R15, R17, R29, R38, R51 

• Insufficient Balance
  A scheduled automatic payment failed the Smart ACH inspection due to insufficient account balance of the payment source twice in a roll. 
• Funding Source Removed
  This loan's linked payment source has been either deactivated by Dwolla or removed by the borrower.  Dwolla automatically deactivate a payment source when one of the following ACH fails has occurred: R02, R03, R04, R05, R07, R10, R11, R13, R15, R17, R29, R38, R51 . This is why "Transfer Failed" is often listed together with "Funding Source Removed". 

The appearance of a note in this column also indicates that this loan's automatic ACH processing has been put on hold. 

Why Pause Automatic ACH?

When consecutive payments have failed due to insufficient funds or there is a problem with the payment source, it is either certain or highly likely that the next automatic ACH payment will fail. To avoid unnecessary failed ACH transfers and the punitive charges associated with such fails, we temporarily pause the automatic ACH payments for these loans to give the borrowers and lenders time to take remediating measures to ensure the success of future payment transfers.  

 

How to turn off the "Attention" flag?

The purpose of the "Attention" flag is to alert loan portfolio managers to take immediate action on these loans so as to minimize their risk of defaulting. The "Attention" flag will disappear automatically when one of the following events has taken place:

1. Borrower has successfully linked a new functioning payment source on Happy Mango
2. Borrower has successfully made an ACH payment on Happy Mango
   Read this article: Paying Off A Loan: How do I make payments on my loan?
3. Loan status has been updated to Paid-Off or Charged-Off
   Read this article:  Loan Management: How does a loan get paid off?
   Read this article:  Loan Management: How does a loan get charged off?
4. Loan payment schedule has been modified
   Read this article: How do I change the payment schedule of an active loan?
5. An offline payment has been recorded on this loan
   Read this article: How do I record an offline payment on Happy Mango?

The automatic ACH processing will be turned on concurrently when the "Attention" flag disappears.