WEDNESDAY: 7 December 2022. 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 terms:
Documents against payment (D/P). (2 marks)
Documents against Acceptance (D/A). (2 marks)
2. Describe FOUR factors that should be considered before handing over an account to a debt collection agency. (8 marks)
3. Summarise FOUR stages of the debt collection cycle. (8 marks)
(Total: 20 marks)
QUESTION TWO
1. Outline FOUR benefits of accurate billing. (4 marks)
2. Explain FOUR types of collection letters. (8 marks)
3. Analyse FOUR types of financial statement frauds that could affect debt collection. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. Enumerate SIX steps in debt collection negotiations. (6 marks)
2. Describe THREE factors that could be considered when evaluating a call centre service provider. (6 marks)
3. Assess FOUR actions by the debt collector that could amount to a misrepresentation of the legal debt collection process. (8 marks)
(Total: 20 marks)
QUESTION FOUR
1. Highlight SIX forms of loan modification agreements. (6 marks)
2. Examine THREE types of day sales outstanding (DSO). (6 marks)
3. Describe FOUR factors a credit manager should consider when determining collection procedures. (4 marks)
4. Propose FOUR aspects that should be included in an organisation’s data policy for debtors. (4 marks)
(Total: 20 marks)
QUESTION FIVE
1. List FOUR types of customer personalities that a debt collector could encounter during debt collection. (4 marks)
2. Describe TWO benefits of alternative dispute resolution (ADR) to the following parties:
Borrower. (2 marks)
Lender. (2 marks)
3. Summarise FOUR borrower conditions that could necessitate a loan workout arrangement. (4 marks)
4. Evaluate FOUR factors to be considered when designing an improved collection process. (8 marks)
(Total: 20 marks)
