COLLECTIONS MANAGEMENT DECEMBER 2021 PILOT PAST PAPER

December 2021.        Time Allowed: 3 hours.

Answer ALL questions.  marks allocated to each question are shown at the end of the question. Show ALL your
workings.

QUESTION ONE

1.          Outline five features that an ideal collection system should display on the screen.    (5 marks)

2.          With reference to documentary credit, explain the following:

Back to back letter of credit     (2 marks)

Red Clause Letter of Credit   (2 marks)

Stand-by letter of credit.      (2 marks)

3.           With reference to debt collection, explain the nature of persons classified as Vulnerable.  (2 marks)

Enumerate seven Vulnerable persons.     (7 marks)

(Total: 20 marks)

 

QUESTION TWO

1.         Describe three Non-Credit department personnel that may be used in collection activities.   (6 marks)

2.         Discuss four types of penalties for violating data protection requirement.   (8 marks)

3.         With reference to computer based customer searches:

Identify three advantages.    (3 marks)

Explain Three limitations.        (3 marks)

(Total: 20 marks)

 

QUESTION THREE

1.          Outline five personal characteristics required by an effective collector.    (5 marks)

2.          Discuss five characteristics of effective collection communication.      (10 marks)

3.          Explain five methods used by debtors to conceal their assets and income.      (5 marks)

(Total: 20 marks)

 

QUESTION FOUR

1.          Explain BATNA Method of negotiation        (2 marks)

Examine four traits of effective negotiators     (8 marks)

2.         Enumerate policies and procedures that should be included in collection manual.     (10 marks)

(Total: 20 marks)

 

QUESTION FIVE

1.          Summarise five types of information that a collection manager should check in the company’s database about hired

collection agencies.     (5 marks)

2.           Identify the type of contact information that a collector requires for contacting debtors.   (5 marks)

3.           Explain seven procedures used to track a customer orders to avoid commencing collection of receivable.  (7 marks)

4.           Outline three communication tactics used to grab debtor’s Attention.     (3 marks)

(Total: 20 marks)

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