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Debt recovery
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Debt recovery

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    Debt recovery Debt recovery Presentation Transcript

    •  In debt collection, businesses often hire a third party to collect this, because the cost of collecting the debt themselves can be more than the debt itself.
    •  When collection is outsourced, debts are categorized according to "buckets."
    •    Collection methods are based upon the type of debt and the debtor's past payment history. Debts are divided into "soft" and "hard" buckets. Soft bucket items include most unsecured debts.
    •  Many debt collection companies categorize their clients by past payment history. Category 1 includes people who get occasionally behind on payments. Category 2 includes people who are often behind on monthly obligations. Category 3 includes people who are consistently behind on payments and have defaulted on some of their loans or credit cards.
    •   Who do not pay their installments in time. When the customer crosses 90 days delinquency, legal action is initiated.
    • Delinquency Total No. of cases POS Current Bucket 30 days delinquency Bucket 1 60 days delinquency Bucket 2 90 days delinquency Bucket 3 120 days delinquency Bucket 4 150 days delinquency Bucket 5 180 days delinquency Bucket 6 POS realised %POS realised
    • Skip cases where there is no record of the customers. Original documents are retrieved from the data house.
    • A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signature of payee may be done by some other person for endorsing it. Under these circumstances the cheque may go into wrong hands.
    •   Order Cheques Bearer Cheques
    • Crossing of a cheque means "Drawing Two Parallel Lines" across the face of the cheque.
    • General Crossing  Generally, cheques are crossed when  There are two transverse parallel lines, marked across its face or  The cheque bears an abbreviation "& Co. "between the two parallel lines or  The cheque bears the words "Not Negotiable" between the two parallel lines or  The cheque bears the words "A/c. Payee" between the two parallel lines.
    • Special or Restrictive Crossing When a particular bank's name is written in between the two parallel lines the cheque is said to be specially crossed.
    •      Sign Incomplete Date Amount in figures and words mismatch 3 months expiry period Insufficient funds