COLLECTIONS MANAGEMENT APRIL 2023  PAST PAPER

WEDNESDAY: 26 April 2023. Morning Paper.              Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.

QUESTION ONE

1. With reference to debt collection practices:

  • Distinguish between “Debt rescheduling” and “Debt compromise”. (4 marks)
  • List FOUR advantages of debt compromise to the debtor. (4 marks)

2. One of the key qualities of a debt collector is overcoming customer objections while maintaining good customer service skills.

With reference to the above statement, describe THREE types of objections that a debt collector should overcome during debt collection.      (6 marks)

3. Explain THREE types of risk exposure associated with the use of letters of credit. (6 marks)

(Total: 20 marks)

 

QUESTION TWO

1. Explain THREE essential elements of effective collection emails (6 marks)

2. A debt collection manager needs a procedure for dealing with customers in a standardised manner to resolve payment issues.

With reference to the above statement, describe FIVE steps that a collection manager could consider when drafting a debt collection procedure.    (10 marks)

3. Outline FOUR sources of debtor skip tracing information (4 marks)

(Total: 20 marks)

 

QUESTION THREE

1. With reference to data protection regulations, state FIVE rights of a data subject (5 marks)

2. Argue FIVE cases for a credit management plan (5 marks)

3. Examine FIVE factors that a credit manager should consider before taking action against a debtor in default.  (10 marks)

(Total: 20 marks)

 

QUESTION FOUR

1. Describe THREE benefits of using automation in consumer collections. (6 marks)

2. Suggest THREE measures that lenders should take to avoid debt collection scams. (6 marks)

3. Identify EIGHT factors that could influence the choice of a debt collection departmental structure.  (8 marks)

(Total: 20 marks)

 

QUESTION FIVE

1. Outline SIX actions that could be deemed invasive in debt collection. (6 marks)

2. Evaluate THREE technologies that could aid in debt collection (6 marks)

3. Propose FOUR factors that a credit manager could consider in deciding whether to engage the services of a collection agency or a law firm in collecting overdue debt (8 marks)

(Total: 20 marks)

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