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Bank Accounts and Assignment

Understanding how bank accounts work for payouts and how debt assignment affects the collection process.

Bank Accounts​

Overview​

Creditors must register bank accounts to receive payouts from successful collections. Debitura supports various bank account types across different jurisdictions.

Supported Account Types​

SEPA accounts (EU/EEA):

  • IBAN-based accounts
  • Euro currency
  • Free transfers
  • 1-3 business day processing

International accounts:

  • SWIFT/BIC-based transfers
  • Multiple currencies supported
  • Bank fees may apply
  • 3-5 business day processing

Multi-currency accounts:

  • Hold balances in different currencies
  • Reduce conversion fees
  • Faster payouts
  • Available for high-volume clients

Registering Bank Accounts​

Required Information​

To register a bank account for payouts:

For SEPA accounts:

  • Account holder name (must match creditor name)
  • IBAN
  • BIC/SWIFT code
  • Bank name
  • Bank address

For international accounts:

  • Account holder name
  • Account number
  • SWIFT/BIC code
  • Bank name
  • Bank address
  • Intermediary bank details (if applicable)

Verification Process​

  1. Account details submitted via portal or API
  2. Validation checks:
    • IBAN/account format validation
    • Account holder name matching
    • Bank existence verification
  3. Test deposit (micro-deposit verification)
    • Small amount sent to account (€0.01)
    • Creditor confirms receipt
    • Account marked as verified
  4. Account activated for payouts

Typical timeline: 2-5 business days

Managing Multiple Accounts​

Use Cases​

Multiple accounts for:

  • Different currencies (EUR, GBP, USD)
  • Different legal entities
  • Segregating case types
  • Cash flow management

Default Account​

  • Designated primary account for payouts
  • Can be changed anytime
  • Applies to all cases unless overridden

Per-Case Account Assignment​

Flexibility:

  • Specify different account per case
  • Route specific collections to specific accounts
  • Useful for complex organizational structures

API example:

POST /v1/cases
{
  "creditor": {...},
  "debtor": {...},
  "invoices": [...],
  "payout_bank_account_id": "ba_abc123"
}

Bank Account Security​

Verification Requirements​

Identity verification:

  • Account holder must match creditor registration
  • Business registration documents required
  • Beneficial ownership disclosure (for companies)

Security measures:

  • Account details encrypted at rest
  • Restricted access to account information
  • Audit logs for all account changes
  • Two-factor authentication for modifications

Compliance​

AML (Anti-Money Laundering):

  • Account ownership verification
  • Source of funds checks
  • Ongoing monitoring

KYC (Know Your Customer):

  • Identity verification
  • Business legitimacy checks
  • Ultimate beneficial owner identification

Debt Assignment​

What is Debt Assignment?​

Assignment is the legal transfer of the right to collect a debt from the creditor to another party (Debitura or a Collection Partner).

Types of assignment:

  1. Non-assignment (mandate model)

    • Creditor retains ownership of debt
    • Debitura acts as agent
    • Collections made on creditor's behalf
    • Debtor pays to creditor (via Debitura)

  2. Partial assignment

    • Right to collect assigned temporarily
    • Ownership remains with creditor
    • Common for Collection Partner escalations

  3. Full assignment (debt purchase)

    • Debitura purchases debt outright
    • Creditor receives immediate payment (discounted)
    • Debitura assumes full risk and reward
    • Less common, typically for large portfolios

Assignment Models​

Mandate Model (Default)​

How it works:

  1. Creditor submits case to Debitura
  2. Creditor retains legal ownership of debt
  3. Debitura authorized to collect on creditor's behalf
  4. Debtor obligated to pay original creditor
  5. Payment flows: Debtor → Debitura → Creditor

Advantages:

  • Creditor maintains control
  • Lower fees
  • Creditor retains direct debtor relationship

Disadvantages:

  • Creditor remains on legal documents
  • Creditor cooperation needed for escalation

Collection Assignment​

How it works:

  1. Debt assigned to Debitura or Collection Partner
  2. Assignment registered legally (where required)
  3. Debtor notified of assignment
  4. Collection rights transferred
  5. Payment flows: Debtor → Assignee → Creditor (minus fees)

Advantages:

  • Stronger legal position for collection
  • Faster escalation possible
  • Reduced creditor involvement

Disadvantages:

  • Higher fees (risk transfer)
  • Less creditor control
  • May require debtor notification

Debt Purchase​

How it works:

  1. Debitura purchases debt portfolio
  2. Creditor receives upfront payment (50-80% of value)
  3. Debitura owns debt completely
  4. All collections belong to Debitura
  5. Creditor has no further involvement

Advantages for creditor:

  • Immediate cash flow
  • Risk transferred entirely
  • No further administrative burden

Disadvantages for creditor:

  • Lower upfront recovery (discounted)
  • No participation in upside
  • Loss of debtor relationship
info

Most Debitura cases use the mandate model for maximum flexibility and lowest fees.

Assignment Notifications​

Debtor Notification​

When debt is assigned, debtors must be notified:

Notification content:

  • Original creditor details
  • New collection party (Debitura or Partner)
  • Outstanding amount
  • New payment instructions
  • Debtor rights and protections

Timing:

  • Sent within 5 business days of assignment
  • Multiple contact methods (mail, email)
  • Proof of delivery maintained

Legal requirements:

  • Varies by jurisdiction
  • Some require registered mail
  • Acknowledgment may be necessary

Creditor Documentation​

Assignment agreement:

  • Defines scope of assignment
  • Specifies duration
  • Outlines fee structure
  • Details termination conditions

Registration:

  • May require registry filing (jurisdiction-dependent)
  • Public notification in some regions
  • Court registration for legal enforcement

Bank Account Changes​

Updating Account Details​

Process:

  1. Submit new account details via portal or API
  2. Verification initiated (micro-deposit)
  3. Confirm verification
  4. Account activated

During transition:

  • Old account remains active until new verified
  • No interruption to payouts
  • Scheduled payouts complete to old account

Revoking Account Access​

To deactivate an account:

  1. Ensure no pending payouts to that account
  2. Mark account as inactive
  3. Cannot be used for future payouts
  4. Historical data retained for audit

Cannot delete if:

  • Pending payouts exist
  • Recent payouts processed (less than 30 days ago)
  • Only registered account

Payout Routing​

Automatic Routing​

Default behavior:

  • Single account: All payouts to that account
  • Multiple accounts: Payouts to default account
  • Per-case override: Specified account for that case

Advanced Routing Rules​

For high-volume creditors:

  • Route by case type (B2B vs B2C)
  • Route by currency
  • Route by collection amount threshold
  • Route by geographical region

API configuration:

POST /v1/payout-routing-rules
{
  "condition": "case.debt_type == 'b2b'",
  "bank_account_id": "ba_b2b_account_123"
}

Compliance and Audit​

Transaction Records​

All bank account transactions logged:

  • Payout amounts and dates
  • Associated cases
  • Fee calculations
  • Bank transfer references

Retention:

  • Financial records: 7 years
  • Transaction logs: 10 years
  • Available via API and portal

Audit Support​

For creditor audits:

  • Detailed payout statements
  • Case-by-case breakdowns
  • Fee validation reports
  • Bank reconciliation files

Export formats:

  • PDF statements
  • CSV transaction exports
  • Excel financial summaries
  • API data feeds

Troubleshooting​

Common Issues​

Payout failed - incorrect account details:

  • Solution: Verify and update account information
  • Prevention: Use micro-deposit verification

Payout delayed - verification pending:

  • Solution: Confirm micro-deposit receipt
  • Prevention: Complete verification immediately after registration

Wrong account received payout:

  • Solution: Contact support to reverse/redirect
  • Timeline: 5-10 business days for correction

Multi-currency conversion unexpected:

  • Solution: Register account in debt currency
  • Prevention: Maintain accounts in all operating currencies

Best Practices​

Bank Account Management​

  1. Verify immediately - Don't delay micro-deposit confirmation
  2. Keep details updated - Prevent failed payouts
  3. Use matching currencies - Avoid conversion fees
  4. Maintain backup account - For redundancy
  5. Monitor account status - Regular checks in portal

Assignment Strategy​

  1. Start with mandate model - Lowest fees, most control
  2. Consider assignment for escalation - When legal action needed
  3. Evaluate debt purchase - For immediate cash flow needs
  4. Review assignment terms - Understand rights and obligations
  5. Maintain documentation - Keep assignment records organized

Next Steps​