Detailed process of account assignment to the agencies.
Covered accounts
Assignment Process
Assignment Prolongation
Covered accounts
Generally accounts reaching 60+ DPD that have been identified and endorsed for external agency assignment.
Accounts less than 60 DPD may also be handed over to external agency. Typically, such accounts will be;
Suspected fraud accounts
Uncontactable accounts as endorsed by the internal skip/field team
Accounts as part of a champion challenger scheme
Account assignment process
All agency assigned accounts shall have 28 days assignment period.
All accounts in the external agency pool shall be provided to each agency weekly (Monday).
Accounts with positive collections results shall be qualified for reassignment to the same agency subject to assignment prolongation rules.
The agency will be instructed to immediately stop all collection activity for accounts with complaints under regulatory policy (BSP,NPC,SEC) and will be investigated.
After investigation, if found valid, the concerned accounts will be withdrawn from the Agency and will not be reassigned to the same Agency.
Criteria | Parameters |
|---|---|
Selection | Account status is >60DPD |
Account is selected due to accelerated conditions (Potential fraud, uncountactability) | |
Champion challenger candidate | |
Frequency and date of endorsements | Weekly. Mondays |
#contract per Agency/Load per week | Based on FTE count, Based on past performance. *Idea is to provide the optimum endorsements to the agency with the most headcount allocated to the bank and who provided better performance in collections. But not to over-endorse accounts to agencies. |
Length | 30days (1 calendar month) *Best practice is to do 4 weeks for easy monitoring. |
Assignment Prolongation
Rules apply to external agency assignments prolongation:
There will be setup rule to prolong the existing assignment beyond the end date based on payments paid by the client. The minimum partial payment requirement shall be based on the minimum due that a client has to pay which is the original monthly installment for the loan. (1 month amortization).
An assignment prolongation can be by either 28 days or more, maximum length of prolongation cannot exceed the maximum length of the original assignment.
Prolongation of an assignment can be applied repeatedly provided that during each prolongation client fulfilled minimum partial payment requirement.
Account subject for prolongation is greater than 90DPD.
Prolongation on accounts less than 60DPD accounts shall be allowed only if;
there is only 1 month left from the original amortization schedule.
there were records of the last payment has kept due to Agency efforts. (Operational report)
Account reassignment (Rotation)
Collections shall rotate assigned accounts from each agency based on its assignment period.
This is to insure that all accounts that are EXA qualified are serviced and all efforts towards its recovery are exhausted.
Reassignment can rotate between Internal collections and external collections team subject to conditions;
Agency to Internal collections and vice versa.
Agency to Agency.
All reassigned account shall form part of the normal assignment of the assigned group.