What Happens If a Payment Fails?

TABLE OF CONTENTS

• Common Reasons for Failed Payments
• What Happens After a Payment Fails

Occasionally, a scheduled payment into your escrow account may fail due to issues such as insufficient funds, a closed or frozen bank account, or a processing error. While this can happen from time to time, it's important to understand the implications and know how to resolve it quickly to keep your debt relief program on track.

Common Reasons for Failed Payments:

• Insufficient funds in your linked bank account

• Recent changes to your banking institution or account details

• Account closures or holds initiated by your bank

• Processor disruptions or transaction blocks

• Technical or administrative errors

What Happens After a Payment Fails:

1. Immediate Notification
   
   You’ll be notified by DCG (usually via email or phone) within 1–2 business days of the failed transaction. This allows you to take prompt corrective action.
   
   

2. Case Manager Follow-Up
   
   Your Case Manager will reach out to discuss the reason for the failure and help you identify the best solution. They may ask you to confirm your account information, provide updated banking details, or authorize a one-time recovery draft.
   
   

3. Temporary Hold on Negotiations
   
   If failed payments are not resolved promptly, your account may be placed on a temporary hold. This pause prevents further negotiations until your escrow account is current, as settlements depend on having sufficient funds available.
   
   

4. Potential Late or Missed Settlements
   
   In cases where a failed payment delays escrow growth, it may impact our ability to fund upcoming settlements on time. This could result in lost opportunities or the need to renegotiate terms—so timely resolution is important.
   
   

5. Corrective Action and Resumption
   
   Once the issue is resolved—such as by rescheduling the draft or updating your bank information—your program will resume as normal. Your Case Manager will confirm that your payment schedule is back on track and discuss any necessary adjustments to your timeline.

DCG understands that financial challenges happen, and our goal is to work with you—not penalize you—for unexpected setbacks. If you anticipate a payment issue or need to update your banking information, contact your Case Manager as soon as possible so we can assist you proactively.