There are two methods for distributing notices, one of which is preset notice levels, where a different notice is generated depending on how long the member has been delinquent.  (The other is recurring notices, where the same notice is sent again and again.)  Notice levels are the most common method used.

Valid delinquency levels 1-4 are configured via Tool #338 Delinquency Notice Configuration.  Define when and how the system should generate notices to warn both the member and credit union staff about a loan that has gone delinquent. You can configure up to four preset notice levels. You can configure just a few of the levels, too, if you like, but they must be sequential with no gap between them.  In addition to the printed notices generated for mailing to members, the system can also generate Trackers and account comments to notify credit union staff.

When an account reaches a certain number of days delinquent, the system generates the appropriate notice based on this configuration, then flags the account record with the notice level number that corresponds to the notice they received.  You can see this level when viewing the account via Account Inquiry, on the delinquency info window.

Once the member has been delinquent long enough to have passed through all of your configured levels, the level number on the account is set to 5. This is sometimes referred to as the "non-responsive list."  This isn't a true notice level, but instead means that the loan has been delinquent long enough that the system will no longer be producing any automated delinquency notices unless the loan gets brought current and goes delinquent again in the future.  (You can also flag a specific loan never to receive notices at all, but that's different from this.)  It's important that your notice configuration set this "fifth" level as no more than one day after the highest of the 4 notice levels you choose to set up.