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Collection Department Procedures

The document outlines the procedures for collecting past due amounts from customers. It discusses 7 key elements of an effective collection policy: 1) combining credit, supplies and knowledge, 2) timing collections, 3) being selective with clients, 4) training collection technicians, 5) maintaining human relationships, 6) promoting the bank in the community, and 7) admitting when a collection problem exists. It also notes the principles of collection include collecting money owed, systematic follow up, discussing delinquent accounts, and preserving goodwill. Ethics in collection include communicating honestly, respecting people and beliefs, and showing compassion.

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camacho rosario
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103 views1 page

Collection Department Procedures

The document outlines the procedures for collecting past due amounts from customers. It discusses 7 key elements of an effective collection policy: 1) combining credit, supplies and knowledge, 2) timing collections, 3) being selective with clients, 4) training collection technicians, 5) maintaining human relationships, 6) promoting the bank in the community, and 7) admitting when a collection problem exists. It also notes the principles of collection include collecting money owed, systematic follow up, discussing delinquent accounts, and preserving goodwill. Ethics in collection include communicating honestly, respecting people and beliefs, and showing compassion.

Uploaded by

camacho rosario
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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COLLECTION DEPARTMENT PROCEDURES

Collection - is an action of collecting something 7 Elements of Collection Policy


to someone.
1. Collection is made easier, when the credit
Collection Procedure - Detailed list of steps extend is a package of three things: credit,
for ordered execution leading to when and how to supplies, and knowledge,
collect past-due amounts.
2. Timing
Principles of Collection
3. Be selective in your client.
• collect the money-
4. Enjoy well trained credit technicians.
The primary job of the person
5. Human-relationship
responsible for collections is to collect the
money as close to the terms of the 6. The story of your bank to your community at
obligation as possible. every opportunity.
• maintain a systematic follow-up- 7. The final element of a sound collection
policy, if the six have failed, is to admit you have a
After the initial contact with the
collection problem in your hand.
delinquent customer, it is important to keep
additional contacts on a strict schedule. Ethics of Collection Policy
• get the customer to discuss the account- • Communicate with honesty,
Once the collector gets the trustworthiness, and integrity.
customer to talk about the delinquent
account, the collector is well on the way to • Respect for the dignity of a person
receiving payment
• Respect for cultural and religious/spiritual
• and, preserve goodwill- beliefs.

Even though the customer may be • Respect for the physical and emotional
experiencing some difficulty in meeting environment in which we work.
payments, it does not preclude them from
• Compassion
becoming a good customer in the future.
• Commitment to continuous improvement
Collection Policy
The final element of credit policy. Collection
policy involves monitory receivables to spot
trouble and obtaining payment on past due
accounts

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