Programme overview
Introduction:
Retail credit collections and recovery, covering delinquency strategy, collector skills and write-off, is the subject of this 5-day course for bank and finance company teams that run consumer loan and card arrears, ending with a Collections Strategy and Recovery Plan for a case lender. Many lenders treat every overdue account the same way, so roll rates climb, collector time is wasted on customers who would self-cure and charged-off balances are left unworked. Nominees already supervise collectors, dialler campaigns or recovery portfolios, and teaching is by case study on anonymised arrears data and call recordings. CoreConcept Training Center delivers this retail collections course.
Course Objectives:
- Measure arrears performance using days-past-due buckets, roll rates, cure rates and recovery rates
- Segment delinquent customers by behaviour, balance and contactability and assign each segment a treatment path
- Design and evaluate champion-challenger collection strategies with control groups and success metrics
- Conduct right-party contact calls that secure realistic promise-to-pay arrangements within fair-treatment principles
- Select hardship restructuring, settlement, agency placement or debt sale options for late-stage accounts
- Prepare write-off proposals and track post-write-off recoveries in the lender's accounts
Target Audience:
- Managers who lead early-stage and late-stage collection teams for consumer loans and cards
- Managers responsible for collection strategy design, dialler campaigns and segmentation rules
- Managers who oversee hardship, restructuring and settlement decisions for retail borrowers
- Managers who appoint and supervise external collection and recovery agencies
- Managers accountable for write-off approval, recovery reporting and conduct reviews in collections
Course Outline:
Day 1: Retail Arrears Landscape and Collections Performance Baseline
- Consumer Credit Lifecycle From Pre-Delinquency to Charge-Off
- Days-Past-Due Bucket Structure for Loans and Cards
- Roll Rate and Cure Rate Matrix Construction
- Collections Cost-to-Collect and Liquidation Rate Metrics
- Collections Function Current-State Diagnostic Checklist
Day 2: Behavioural Segmentation and Champion-Challenger Strategy
- Behavioural Segmentation by Risk, Balance and Contactability
- Self-Cure Identification and Low-Touch Treatment Paths
- Champion-Challenger Test Design With Control Groups
- Dialler Campaign Rules and Contact Channel Sequencing
- Collections Decision Tree and Strategy Rulebook Drafting
Day 3: Collector Skills, Call Scripting and Promise-to-Pay
- Right-Party Contact Verification and Call Opening Script
- Promise-to-Pay Negotiation and Broken Promise Follow-Up
- Objection Handling Scripts for Common Non-Payment Reasons
- Vulnerable Customer Indicators and Referral Procedure
- Call Quality Scorecard and Collector Coaching Routine
Day 4: Restructuring, Agencies, Fair Treatment and Write-Off
- Hardship Restructuring, Payment Holiday and Settlement Options
- Collection Agency Selection, Placement and Commission Models
- Fair-Treatment Principles and Collections Conduct Controls
- Write-Off Policy, Charge-Off Timing and Approval Matrix
- Post-Write-Off Recovery Accounting and Debt Sale Evaluation
Day 5: Case Study on a Collections Strategy and Recovery Plan
- Case Lender Arrears Portfolio and Roll Rate Review
- Case Segmentation and Champion-Challenger Test Proposal
- Case Collector Call Role Review With Promise-to-Pay Targets
- Case Agency Placement and Write-Off Decision Exercise
- Collections Strategy and Recovery Plan Completion and Presentation
Skills You Will Gain:
- Delinquency Performance Analysis
- Arrears Segmentation
- Collection Strategy Testing
- Right-Party Contact Technique
- Payment Arrangement Negotiation
- Agency Performance Oversight
- Collections Conduct Assurance
- Charge-Off and Recovery Accounting
Why Attend This Course:
- Deliver a Collections Strategy and Recovery Plan to the head of retail credit, the collections director and the finance function
- Decide which delinquent segments get self-cure messaging, collector calls, restructuring or agency placement
- Avoid rising roll rates, unfair collection practices and charged-off balances that are never worked again
- Coach collectors and team leaders on call scripts, promise-to-pay standards and quality scorecards
Conclusion:
Back at work, the participant presents the Collections Strategy and Recovery Plan to the head of retail credit, the collections director and the finance function, who use it to approve segment treatments, a first champion-challenger test, agency placements and the write-off calendar. Team leaders use the scripts and quality scorecard to coach collectors. After the first full cycle, the unit should review roll rates, kept promise ratios, complaints and post-write-off recoveries, then adjust segments and strategy rules.
Frequently Asked Questions (FAQ):
What should participants know before a retail credit collections and recovery course?
Participants should already supervise collectors, collection strategy or recovery work for consumer loans or cards and understand basic arrears reports. Bringing an anonymised roll rate report or collection script helps during the case study.
How does a retail credit collections and recovery course differ from a corporate credit risk course?
It focuses on high-volume consumer arrears: buckets, segmentation, dialler strategy, collector calls, agencies and write-off. A corporate credit risk course covers underwriting, ratings, covenants and one-by-one workout of large business loans.
Why use champion-challenger testing in retail credit collections and recovery?
Champion-challenger testing compares the current collection strategy with a new one on randomly split accounts, so the lender adopts changes only when results such as cure rate or cost-to-collect improve on evidence.
What do participants take back from the retail credit collections and recovery course?
Participants take back a Collections Strategy and Recovery Plan, plus a roll rate template, segmentation decision tree, call script set, quality scorecard and write-off approval matrix adaptable to their own portfolio.