Experts in Debt-Recovery.
Specialist Advisors on Credit and Distressed Debt

Personal Loans Collection Mandate Synopsis (January - December 2012)

For over two years we have been on the Personal Loans collection panel for a prominent South African Bank. At the beginning of 2012, the bank started comparing and publishing the monthly collection results of its service providers in each collection category. Most of the collection work we received was in the largest category of outsourced debt, being the 90 – 180 day category. This case study details the work performed and the results achieved during 2012 in this category of debt.


Plan of Action
It was considered critical that we deliver exceptional performance from the outset in order to differentiate ourselves from our competitors.

The bank had a complicated formula which it used to measure performance. This formula was a function of, inter alia:

  • Collection rate as a percentage of total capitalActivation rate as a percentage of the number of inactive accountsAverage payment
  • We realized that it was important to understand the formula properly and tailor our procedures accordingly, in order to ensure that our collection effort would achieve our client’s desired outcomes.


Development of the Collection Project
In April 2012, we placed 3rd out of 6 panelists. We continued to focus on tailoring our procedures to optimize our outcomes in terms of our client’s formula.

One of our key focus areas was improving our average payment. We realized that this would eventually translate into an improved overall result. Our client had set a benchmark debtor payment target equal to 100% of the original monthly installment. To ensure our progression in terms of average payment, we attempted to achieve on every debtor payment not less than 150% of the original monthly installment.


By July 2012, we had achieved the best collection rate and activation rate on the panel, resulting in us winning the monthly competition.

For November and December 2012 we achieved the best collection rate, activation rate and average payment in our category.

We placed first overall for the year 2012 in the 90 – 180 day category on our client’s panel, this being the category with the highest value of outsourced debt.


Through our unwavering commitment to align our procedures and performance to our clients’ objectives, we became an invaluable part of this client’s road to success. Allow us to show you how Debt-IN can make a real and lasting difference in your business or organisation.