Created by: FIBIYISOLA A. MUSTAFA
Document No.: 1220/2204 Vol. III
Document Category: Credits & Loans
Document Title: Stage II Recovery Procedure
Written By: Fibiyisola A. Mustafa
Date: May 2020
Overdue debts arise from non-liquidation of loan advances within the agreed time or for failure to settle unpaid accounts for goods & services supplied.
When a borrower defaults on an Aposhashamura loan, we make attempts to resolve the dispute by following some major steps. Here is Stage III of the Recovery Procedure.
Customer Expected Call to Action
If Borrower complies
If the Borrower fails to comply
Borrower’s Loan Details is pushed on ALL the Credit Registry Bureau.
Account Status will be set to ‘Delinquent’.
NB: A Delinquent account is a credit account on which a consumer has failed to make at least the minimum monthly payment by the due date. A delinquent account that is 30 days past due will spur the credit company to start contacting the consumer about bringing the account current. This kind of report takes a toll on a borrower’s credit rating & scores them below average to qualify for a loan on our platform, or any other platform
Pre-action notice for a debt recovery proceeding
The company will write the borrower a Letter of demand with warnings about dire consequence, if payment is not received within seven (7) days from the day the letter is written
Debtor is expected to make repayment or negotiate payments in installments
The process is completed
Stage IV is initiated