EXCELLENT PEAK LENDING CORPORATION

EXCELLENT PEAK
LENDING CORPORATION

COLLECTION POLICIES AND PROCEDURES MANUAL

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EXCELLENT PEAK LENDING CORPORATION

I. INTRODUCTION

This Collection Manual is intended for the use of all collection officers, senior collection
officers and Collection Head providing services to Excellent Peak Lending Corporation (
“EPLC” ). “EPLC” strives to establish uniformity and quality in the procedures used in
collection of current, past due and remedial accounts.

After reading the manual, new applicants should complete competency quiz and collector’s
Agreement in order to be approved to perform collections. The agreement a copy of this
manual must be signed by the applicants for documentation purposes.

II. COMPANY OVERVIEW

Excellent Peak Lending Corporation (“EPLC”) was founded in 2020 engage in granting
personal, SME’s and corporate loans.

Our Traditional business is based on giving opportunities to small business entrepreneurs to

start or grow business by giving them financial support with a low interest rate in the
market.

In addition, Excellent Peak Lending Corporation also offers corporate and salary loan to all
qualified employees.

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TABLE OF CONTENTS

SECTION ONE ‐ FUNCTIONS OF COLLECTION DEPARTMENT

CHAPTER ONE: CREDIT WHERE CREDIT IS DUE ------------------------------------------ 4

CHAPTER TWO: RECOMMENDED COLLECTION TIMELINE ------------------------------- 6

CHAPTER THREE: COLLECTION CALLS ------------------------------------------------------ 7

CHAPTER FOUR: COLLECTION NOTICES ---------------------------------------------------- 13

CHAPTER FIVE: HANDLING DISPUTES AND CASH FLOW OBJECTIONS 17

CHAPTER SIX: SKIP TRACING 19

SECTION TWO ‐ COLLECTION AGENGIES AND INDUSTRY SOLUTIONS 21

CHAPTER SEVEN: COLLECTION AGENCIES ARE NOT A COMMODITY 22

CHAPTER EIGHT: THE IMPORTANCE OF LICENSING 24

CHAPTER NINE: STRATEGIC THOUGHTS FOR FINANCE AND COLLECTION FEES 25

CHAPTER TEN: MANAGING THE LITIGATION PROCESS 26

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EXCELLENT PEAK LENDING CORPORATION

FUNCTIONS OF THE COLLECTION DEPARTMENT

The Collection Department performs several functions primarily responsible for collections
functions such as;

 Locating the consumer’s whereabouts and businesses with delinquent accounts and
notifying them of delinquencies.
 Collecting the amount due based on contracts signed by the consumer.
 Filing of cases in court of the Philippines for proper courts of the land.
 Collecting the interest, late fees, Penalty and accrual interest from consumers who are
delinquent.
 Monitoring the consumer accounts and provides the payment rating for possible renewal
of loans.
 Preventing the accounts to be delinquent and minimize the delinquent portfolio.

This section of the manual provides the overall functional and positional chart of EPLC, A clear
and well planned table of organization which provides the scopes of work of the department.

TABLE OF ORGANIZATION

This part of the manual provides the overall functional organizational chart of EPLC Collection
Department.

COLLECTION HEAD

SENIOR COLLECTION OFFICER

COLLECTION OFFICER COLLECTION OFFICER

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COLLECTION DEPARTMENT DUTIES AND RESPONSIBILITIES

A. COLLECTION HEAD

 Monitoring of Accounts - Current, past due and under litigation handled by the
senior collection officer and collection officer.
 Approves statement of accounts
 Collection Head shall be the signatory of the demand letter and Notice of
dishonour
 Prepares final collection reports/efficiency
 Approves discounts regarding pre-term payment upon request of the senior
collection officer and borrower.
 Make sure all PDC’s do not become stale
 Approves endorsement of account for filing of cases.
 Safekeeping of PDC Checks

B. SENIOR COLLECTION OFFICER

 Prepares statement of accounts for client/s.

 Prepares collection letter such as reminder letter, demand letter and final
demand letter.
 Monitoring of accounts under his collection officer
 Scheduling of Field visits and serving of collection letter
 Making calls, text and emails for collection follow up under his/her accounts
 In charge to the accounts over 180 - days past due.
 Endorse accounts for litigation to Collection Head.
 Prepares SMALL CLAIMS and BP 22 Cases
 Field Visits if necessary.
 Submission of Final collection report ( account handled by SCO and CO)

C. COLLECTION OFFICER

 Performs collection follow up via call, text and email to the accounts over 30 – 90
days past due.
 Performs collection visitation to delinquent client
 Reminds the current client if their checks are funded 2 days before the due date.
 The collection officer shall visit the client within 48 hours to determine the reason
of default.
 Submission of Collection report ( Accounts Handled)

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COLLECTION PROCEDURE

I. CURRENT/UPDATED ACCOUNTS

a. Senior Collection and Collection officer shall remind the client’s 2 days
before the due dates.

b. If the client request for hold the officer will charge the client an additional
5% holding fee, Penalties and interest from the date of maturity to
promise dates.

c. If client confirmed the payment the collection officer will deposit the
checks for on due dates.

d. If client refuse to answer the calls and text the collection officer will
deposit the checks and schedule the field visit to serve the demand letter
or Notice of dishonour.

e. If client made promise payment the officer will ask for replacement
checks with interest and penalties and deposit the checks on promise
date.

f. If the checks are clear the Senior Collection officer will record the
payment to the client’s ledger to be submitted to collection head for
accounting confirmation.

II. PAST DUE ACCOUNTS (1-130 days past due )

a. Field Collection Visitation - With demand letter/Notice of dishonour and

Statement of account. If the client still willing to communicate and revive
their accounts to current ask them to pay the amount due plus penalties ,
interest and other charges.

b. IF client requesting for restructure of accounts the clients shall visit the
office for proper discussion and approval by the management.

c. Client who requesting restructuring of accounts shall pay 20% of amount

due to show his/her good faith.

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d. Collection follow up via phone calls or text, the officer shall make
payment arrangement if clients want to pay in partial or in terms
defending on our company’s policy before making decisions.

e. If client does not want to communicate with us and moved out the said
residence address, the officer will try to trace the whereabouts of the
client using SOCIAL MEDIA, CHARACTER REFERENCE, COMPANY
VERIFICATION AND OTHERS COLLECTION STRATEGIES to locate or
collect the client.

f. If the accounts still paying partial payment with over 131 days past due
the officer shall endorse the accounts to senior collection officer to
perform his function.

g. Endorse to senior collection officer for checking.

III. REMEDIAL ACCOUNTS ( 131- 180 days past due)

a. Field Collection Visitation - With final demand letter/Notice of dishonour

and Statement of account. The senior collection officer can offer a
compromise agreement or a partial discount on interest, penalties and
other charges.

b. If client is interested to compromise agreement senior collection officer

will advise the client to visit the office and make a request letter to the
management.

c. The Collection Head and Head of finance will approves the compromise
agreement.

d. If client choose to settle their account in full with a request of discount in

interest , penalties and other charges the collection head will approves
and verify the accounts if applicable.

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e. Client still not responding to our company representative the senior

collection officer will endorse the account for filing of cases with the
approval of the collection head.

f. Upon approval of the collection head the senior collection officer will
prepare the documents for drafting the complaint/affidavit.

g. The senior collection officer will submit the complaint /affidavit with
attachment to collection head for review; if the complaint /affidavit is
reviewed without correction or concern the officer will file a case to
MTC/RTC.

IV. ACCOUNT WITH CASES

a.

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