SaFi Bank Space : Collections Phases

Accounts in the portfolio are to be classified to the different phases according to DPD, Termination Flags or other factors (Potential fraud, Legal, Agency)

1. Pre-Collections are accounts with DPD less than 0

2. Early Collections are accounts not yet terminated

3. Late Collections are account that are terminated but are not part of Litigation

4. Legal/Litigation account are terminated contract that are already filed for litigation (Technically also part of Late Collections)

Pre-Collections

Is a phase of the process when a client is not yet due buts closed to the due date. Although the account is yet to be in collections the process is used to avoid future delinquencies for the account that will be covered by the process.

Proces Tools

1. Calls and the position is reminder calling and avoidance of penalties.

2. Notification by message (SMS,Viber, Push)

Early Collections (1-90)

Phase where the accounts is already past due. DPD ranges from 1 till before Termination.

At this stage accruals on the account happens and late penalty fees are assessed.

The objective of this process is account normalization, resolved the customers issue and reduce credit losses.

Process Tools

1. Calling

2. IVMR

3. SMS/Viber/Push

4. Email

5. Penalty

6. Skip Tracing

7. Field Visit

8. Programs

*Penalty waiver-Discount on penalty in for payments.

*Re-age (Client willing to pay past missed amortization to get the account o current-Fees will be waived)

9. Pre-Termination (Pre-Paid off/NPL)

• Frequency and intensity is based on delinquency level of the client

• Call spiel handling is based on delinquency level. Call/message script intensity increases based on DPD to stress the need to get the account current and avoid negative consequences (Fees, Negative rating, Termination).

• Based on Loan amount collections will use escalations handling (field visit, skip tracing(3rd pty calling in parallel with the usual calling and messaging logic)

Late Collections (91+)

Phase where the accounts in collections are already terminated (Greater than 90dpd) but before the start of litigation.

At this stage paid off happens where the account is accelerated and all of what are due (Fees, Penalties, Interest )are accrued together and is due and demandable.

The objective is account recovery and avoidance of escalation to legal proceedings.

Process Tools

• Field Visit

• External Agency Assignment.

• Restructuring/Programs

-Settlement (Discount of the total amount due for a payment arrangement based on total outstanding balance.)

• Termination stage where all the amount due in an account is demandable (Acceleration-Past and Future interest, penalties and interest are accrued as one amount which is due)

  • Shall happen when ;

    • The account reaches 91DPD

    • If the account violates the established Terms and Conditions of the loan. (Events of default)

Litigation/Legal (91+)

Phase where the account is initiated for legal proceedings. Debtor are issued a claim through the courts.

The objective is recovery thru the use of litigation.

Process tools

• Out of Court settlement (Extra judicial)

• Small Case filing

• Court Settlement Execution

  • Execution

  • Garnishment

Collections account Journey (Highlevel)

Early to Termination