Extending credit covers the whole of credit processes and procedures - from initiation, evaluation, account management, remedial management, until it goes a full cycle. Somewhere along the way, there are mistakes and weaknesses, thus, an account turned sour. But a loan does not deteriorate overnight. There are "red flags" - warning signs. Early intervention is a must - remedial management. That's what Account Officers are for.
Good. Some CC accounts are able to identify these early warning signs themselves and try to renegotiate terms. But there seemed to be a dearth of properly trained AOs out there. Here's a sample of what we used to write :
this is with regard to your account which we noticed lately is incurring delays.....
.....if payment is a problem , we would like to discuss it with you and perhaps we can work out .....
In contrast, one would now get the following letter:
... we will file a case against you for violation of RA 8484 blah...blah..blah...
Omigosh! the poor guy can't pay. Debt is a finance problem. This is not a legal problem. You could have identified earlier a deteriorating account had you done your job. Or are you sleeping on your job?
Mabuti pa Si Judge, alam ito.