COLLECTION DEPARTMENT PROCEDURES

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

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