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Debt recovery

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Debt recovery

  1. 1.  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.
  2. 2.  When collection is outsourced, debts are categorized according to "buckets."
  3. 3.    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.
  4. 4.  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.
  5. 5.   Who do not pay their installments in time. When the customer crosses 90 days delinquency, legal action is initiated.
  6. 6. 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
  7. 7. Skip cases where there is no record of the customers. Original documents are retrieved from the data house.
  8. 8. 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.
  9. 9.   Order Cheques Bearer Cheques
  10. 10. Crossing of a cheque means "Drawing Two Parallel Lines" across the face of the cheque.
  11. 11. 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.
  12. 12. 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.
  13. 13.      Sign Incomplete Date Amount in figures and words mismatch 3 months expiry period Insufficient funds

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