WEDNESDAY: 23 August 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. Explain the following types of collection metrics:
Accounts to creditor ratio (ACR). (2 marks)
Net loss rate. (2 marks)
2. Discuss FOUR types of loan workout arrangements. (8 marks)
3. Examine FOUR guidelines for effective communication in debt collection. (8 marks)
(Total: 20 marks)
QUESTION TWO
1. Outline FOUR benefits of “in-house” debt collection. (4 marks)
2. Explain FOUR applications of artificial intelligence (AI) in debt collection. (8 marks)
3. Describe FOUR functions of a debt collection department. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. Explain THREE reasons why a credit manager could consider writing off a loan. (6 marks)
2. Describe THREE types of trade credit frauds. (6 marks)
3. Discuss FOUR debtor late payments excuses. (8 marks)
(Total: 20 marks)
QUESTION FOUR
1. Highlight SIX contents of a debt collection “work instruction”. (6 marks)
2. Examine THREE types of undertakings by an issuing bank in documentary credit. (6 marks)
3. Discuss FOUR challenges faced by debt collection agents. (8 marks)
(Total: 20 marks)
QUESTION FIVE
1. Outline FOUR objectives of the Data Protection Act. (4 marks)
2. Explain the term “Alternative Dispute Resolution” (ADR). (2 marks)
Describe THREE types of Alternative Dispute Resolution (ADR). (6 marks)
3. Assess FOUR shortcomings of traditional collection processes in consumer credit. (8 marks)
(Total: 20 marks)
