This final lesson examines the management of delinquent accounts, collection strategies, and recovery processes for non-performing loans.

8.1 Identifying Problem Credits

Problem credits require early detection and structured management. The credit process includes investigation methods, decision-making techniques, and line of credit management . Classification of accounts and marginal analysis are critical skills .

8.2 Collection Strategies and Techniques

Collection management involves :

  • Structured collection procedures 

  • Handling delinquent accounts 

  • Utilising customer communication channels 

  • Insurance and risk transfer solutions 

  • Legal remedies and recovery options

8.3 Provisioning and Write-Off Procedures

Managing non-performing assets requires :

  • Regulatory provisioning requirements

  • Debt Recovery Tribunal procedures 

  • Writing off bad debts 

  • Recovery strategies and loss mitigation

8.4 Legal and Regulatory Framework for Recovery

The recovery process must comply with legal and regulatory frameworks, including :

  • Consumer rights and obligations 

  • Fair practice codes 

  • Regulatory compliance in collection activities

  • Debit Recovery Tribunal and legal remedies

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