Description
Collections policy suited to community and developmental lenders. Covers: purpose and link to underwriting and monitoring; primary objective of minimizing total cost of problem loans; secondary objectives of borrower restructuring and relationship preservation; recognition of soft and under-secured lending; preference for voluntary repayment with legal action as a last resort; case-by-case assessment; exception approval and documentation; credit bureau reporting rules for individuals, sole proprietors, partnerships and corporations (Equifax and TransUnion Canada); escalation milestones at 30, 45 and 90 days; and delinquency reporting to the Executive Committee and board.
