CREDIT & COLLECTION

PROCEDURES
 THE CREDIT INVESTIGATOR /
COLLECTOR –
JOB DESCRIPTION

Credit Investigator - Investigate history and credit standing of individuals or business

establishments applying for credit. May interview applicants to obtain personal and financial
data; determine credit worthiness; process applications; and notify customers of acceptance
or rejection of credit.

Collection Officer - Under direction, compile and evaluate information needed to collect
delinquent accounts; recommend and initiate legal proceedings on enforcement actions;
make field collections; and perform other duties as required.

Sales Agent- Here in Desmark and Premio you are not only responsible in credit and
collection but you are also responsible in finding customers should your branch needs you.
We have no sales agents that is why the company is relying on you.
 THE CREDIT PROCESS
Posting of Application
Customer Chooses Initial to Records
Credit Application Credit Investigation Credit Evaluation
An Item to Buy Interview (Applications In-
(Receptionist) charge) (CI) (Manager and CI)
(Receptionist) (Manager)

Pre-Release
Informing the Procedures, Warranty
Customer Regarding Suspension &
Briefing and Collection Repossession Exclusion of
the Result of CI Photocopying of Legal Action
Process Procedures Accounts
(Applications In- Application
charge) (Manager)
 CUSTOMER SERVICE
TIPS IN HANDLING CUSTOMERS
• Be Courteous
• Know the difference between a benefit and a feature.
• Wrong: "This motorcycle is “fi” already." (feature)
• Right: "This motorcycle will lessen your expenses." (benefit)
• Use vivid but plain language.
• Wrong: "This roof provides protection in the event of a rollover accident."
• Right: "If this car rolls, there's a good chance you'll walk away unharmed."
• Avoid biz-blab and jargon.
• Wrong: "Robust implementation of 80210 protocols!!!"
• Right: "You can connect virtually anywhere."
• Keep the list of benefits short.
• Wrong: "Here are the top 10 benefits of using our product:"
• Right: "The two most important things to remember are..."
• Emphasize what's unique to you or your store.
• Wrong: "Our software makes you more productive."
• Right: "Our customers report an average 30% decrease in costs, about twice the industry average."
• Make your benefits concrete.
• Wrong: "We can radically reduce your inventory costs."
• Right: "We decrease inventory costs by an average of 25%."
CREDIT APPLICATION FORM
 THE CREDIT
APPLICATION PROCESS
• FILLING UP THE APPLICATION FORM
• PROBLEM: Customers are not guided in the
application process. Thus, resulting in incomplete
application forms and application requirements.
• SOLUTION: Employees must check applications
upon submission. When possible, customers
must be “walked through” when filling up
the application forms.
 INITIAL INTERVIEW
(MANAGER / ACCOUNT OFFICER ASSIGNED BY MANAGER)

• To personally know the customer.

• To address questions/concerns of the customers not
addressed by the receptionist
• For the customer to have a more vivid explanation about the
credit application process like lead time of credit
investigation and expecting time of delivery of the unit being
applied to
• To aid the Credit Investigator’s faster and effective
investigation.
 POSTING OF APPLICATIONS TO
APPLICATIONS MONITORING
• To properly account all applications of the store.
• To keep track of the application process
• To avoid misplacement of applications
• To aid faster approval/disapproval
• To aid on-time relay of results to applicants
• To aid the management in gathering data for in-
depth analysis
THE CREDIT
INVESTIGATION PROCESS
 THE CREDIT INVESTIGATION
PROCESS
(CREDIT APPLICANT & CO-MAKER)

Verification

Clarification

Appraisal / Inspection

Recommendation
 FIVE C’S OF CREDIT
1. Character 4. Collateral/Co-maker
 ● Borrower’s willingness to pay; the basic
quality on which the entire structure of all  ● Any property used as security in
business and personal credit evolves. Answers place of capacity or capital. (But never
the question: to be confused as a substitute of
 WILL HE PAY? character)
 ● Co-maker → when there is a need
for co-maker, it must be properly
2. Capacity explained and understood by the
 ● Borrower’s ability to pay specific obligations
person co-making. Answers the
when due; measure of resources based on
income earning power. Answers the question: question:
 CAN HE PAY?  WHAT IF HE WILL NOT PAY?
 
3. Capital 5. Condition
 ● financial strength of borrower’s resources to
support credit facilities sought to be obtained  ● Business, Economic, Climate and/or
and would be available for creditors in case of Circumstances which may exert strong
inability (due to lack of CAPACITY) or
unwillingness (due to flaw in character) of the
adverse influence or negative affect
borrower to pay maturing obligations. Answers towards settlement of future payment.
the question Answers the question:
 HOW MUCH CAN HE PAY?  WHAT IF HE COULD NOT PAY?
CREDIT INVESTIGATION
REPORT
 CRITERIA FOR APPROVAL /
DISAPPROVAL  APPROVED  DISAPPROVED

 1. Home Ownership 3. Purpose

 Owned by Applicant   Personal use
  Rented   to be given away as gifts, awards, rewards.
  If rented, must have close relative willing to act   To be used by a relative or friend. Whoever
as co-maker. Parents, brother, sister only uses the unit must also be checked
  All other cases require approval from Head   Business use. Must require a bigger down
Office payment.
  House is located in very dangerous or hard to  - Post Dated Checks merely provide additional
reach areas
assurance and security on the payment of the
  customers’ monthly balance and should not be
2. Source of Income treated as a 100% guarantee on payment.
  Judges, lawyers, BIR personnel, Clerks of  - Note: Should the issuance of PDC’s become
Court, soldiers with no home ownership, Traffic the basis of approval of credit application,
Personnel. account must be active for at least one year
  Businessmen with bad credit reputation with without prior bad check issuances. It must also
banks or other lending institutions be complete otherwise the last check must bear
  Casual Employees the balance.
  Regular Employees with Good Credit Standing  - Co-makers must have a permanent residence
  Self-Employed Employees willing to issue in the area with Good Credit Status.
PDC. 
 APPROVAL PROCEDURES
 Applications must be approved by the Manager prior to the release of
the unit.
 In case the manager is absent, the manager must delegate the task of
reviewing credit applications to another person until his/her return. In
branches with Account Supervisors, then the Supervisor automatically
assumes the responsibility of making the final approval of accounts.
 However, all applications (approved / disapproved) must be reviewed
and bear the signature of the branch manager and Credit Investigator
before filing.
 Approval / Disapproval decisions must be made no later than 1 day
from date of application.
 For Repeat Buyers, old Credit Application Forms and CIR must be
attached to new contract
 COMMON ERRORS IN CREDIT
APPROVAL / DISAPPROVAL
Credit Investigation
 CIR not completely filled up
 Filling up CIR only upon arrival in the office. CIR’s should be filled up during or
immediately after Credit Investigation to ensure accuracy of data.
 Not following standard Credit Investigation process (Checking with the Barangay
office, Reviewing customer bills, etc.)
 Lack of verification of application data (Home and Property ownership,
Customers previous credit history, work status / situation)

Credit Evaluation
 Lacking Detailed or clear remarks. This results in the inability of frontline
personnel to properly explain to customers the reason for disapproval, thereby
resulting in arguments with customers.
 Details of the Credit Investigation Report are not taken into consideration during
the final approval/disapproval process.
 PRE-RELEASE
PROCEDURE

• Customer Briefing on Company Credit Policies

• Ensure all credit documents are signed and complete
• Both husband and wife must sign contracts
• Make sure co-makers have signed contracts prior to release –
especially applications with required co-makers
• Proper filing and safekeeping of Credit Documents must be
observed for easy reference and should any legal action be needed
for the collection of the account in the future
• Customer Briefing on Proper Care and Maintenance of the
purchased products must be conducted
 INSTALLMENT SALES CONTRACT

•Complete Sets of Installment Contract for Appliance and Power Products contains the following:

1) Summary on Appliance Installment Terms and Conditions- - 2 copies (1 copy for customer)
2) Disclosure Statement - 2 copies (1 copy for customer)
3) Authority to Pull-out - 2 copies
4) Promissory Note - 3 copies
5) Voluntary Surrender- 1 copy
6) Sales with Reservation of Title- - 3 copies

• Complete Sets of Installment Contract for Motorcycle contains the following:

1) Summary on Motorcycle Installment Terms and Conditions - 2 copies (1 copy for customer)
2) Disclosure Statement - 2 copies (1 copy for customer)
3) Authority to Pull-out - 2 copies
4) Promissory Note - 3 copies
5) Voluntary Surrender- 1 copy
6) Deed of Absolute Sale- - 4 copies
7) Assignment and Waiver of Property Rights- 4 copies
8) Chattel Mortgage- 5 copies
9) Special Power of Attorney - 4 copies
THE COLLECTION
PROCESS
 CI / COLLECTION
ITINERARY
Purpose
 To ensure that Collectors make proper use of their time by pre-planning their
field work.
 To aid Managers and Supervisors in implementing a proper monitoring system
of collection efforts and out-of-office work conducted by their Credit &
Collection Personnel.
Filing of Itineraries
 Itineraries are considered a part of the company’s reporting system and must
be filed properly.
 Each Collector must have an individual file folder for his itineraries.
 All itineraries must be signed by Managers or Supervisors prior to filing.
Types of Itineraries
 Manual Itinerary – this is needed during credit investigation.
 Printed Itinerary – this is a much faster way of preparing the list of accounts to
be visited. This will allow each AO to have more spare time for other tasks.
ITINERARY SAMPLE

Note: This was taken from excel

 COLLECTION
PHILOSOPHY

• 1. In collection, negotiate WITHOUT fear.

Never Negotiate out of fear.
• 2. Never start an exchange with an argument
with the debtor
• 3. Always try to use a delicate, empathic
approach without yielding your demand for
payment
 TWO PRIMARY DEBT COLLECTION PHILOSOPHIES
The PROFESSIONAL YET FIRM is right for you if:
• You want to maintain relationships with your customers:
• You believe this will be the most effective approach in your situation
• You are concerned about negative publicity
• For example, you do not want complaints to appear on the internet or in
local newspapers.
• This approach matches up well with your business philosophy.
The FORCEFUL AND INTIMIDATING approach may be right for
you if:
• You believe it will be a more effective technique for dealing with your
particular debtors.
• Maintaining a customer relationship is not important.
• Your claims are very small and a lot of effort can not be justified, so the
collection agency needs to hit the debtor hard and fast.
 FOUR PRINCIPLES OF
COLLECTION
1. Collect the Money
2. Systematic Follow up
3. Get the borrower to discuss the situation
4. Preserve goodwill
However, where only one choice has to be
made between collecting the money and
preserving goodwill, focus should be on
Collecting the money
 COLLECT THE MONEY
• The primary job of the person responsible for collections is
to collect the money as close to the terms of the obligation as
possible. There should never be any doubt as to why the
individual is engaged in this particular task. The debtor has
an obligation to pay within the terms of the agreement. It is
the job of the collection person to make sure that this
obligation is met. The tone may be indulgent at first, but
should be intensified and accelerated as much as necessary to
ensure payment by a debtor.
 SYSTEMATIC FOLLOW-UP
• After the initial contact with the delinquent customer, it is
important to keep additional contacts on a strict schedule. If
the collector, for example, is told that a check will be mailed
in a few days, it should be noted. If the check is not received
at the promised time, a follow-up is essential, otherwise the
collection effort will become ineffective.
• Systematic follow-up of accounts, even those which can not
pay immediately, reinforces the serious nature of the
outstanding debt and emphasizes the importance attached to
it by the creditor. That in itself is an important collection
advantage.
 GET THE BORROWER TO
DISCUSS THE SITUATION
• Once the collector gets the customer to talk about the delinquent
account, the collector is well on the way to receiving payment.
That is why emphasis is placed on inviting the debtor to talk. The
object of the discussion is to get the debtor's explanation of the
delinquency. It may be a question of a dispute; it may be due to a
temporary shortage of funds; or the customer may intend to hold
off payment so the creditor's money can be used in its own
business.
• During the discussion, the collector may begin to see the debtor's
situation more clearly. If the slow payment is the result of a
tempory cash flow problem, tolerence of slower payments may
be accepted, but it should be emphasized to the customer that the
new schedule of payments must be completed.
 PRESERVE GOODWILL
• Even though the customer may be experiencing some difficulty
in meeting payments, it does not preclude them from becoming
a good customer in the future. Therefore, it is important to
preserve goodwill while pressing for collection. This requires
not only tact, but knowledge of the customer and industry. One
of the advantages claimed by specialized collection personnel
is that they can develop these techniques to their fullest. On the
other hand, the team concept presents the opportunity for credit
and customer service personnel to better understand the
relationship of the customer to the industry and overall
marketing objectives of the company.
WHAT IS A CUSTOMER
 CAUSES OF DELINQUENT
ACCOUNTS
1. Internal Causes
 Absence or insufficiency of a credit report
 Absence of proper documents or simply the failure to register the debt documents in
applicable cases
 Poor or faulty accounting systems
 Unsystematic Collection Efforts
 Family, business, or other social relationship between the creditor and debtor
 Inappropriate loan size and terms

2. External Causes
 Over-obligation on the part of the debtor
 Oversight (witting or unwitting)
 Bad paying habits and practices
 Indolence (most debtors are too lazy to pay their creditors)
 Personal or business reverses or misfortunes
 Dissatisfaction, whether founded or unfounded
 Habits, practices, and idiosyncrasies of the debtor
 GENERAL TYPES OF
DEBTORS
1. The Up To Date (UTD) Debtor 4. Changed Circumstance (CC)
 → a debtor who pays on time and who responds  → A debtor, who, for social, economic or
to available prompt payment incentives offered political reasons; by law, contract, accident or
because of his sound financial position. fortuitous event, suddenly cannot pay his
 APPROPRIATE ACTION: obligation.
 Collector must aggressively campaign debtor to  APPROPRIATE ACTION:
avail of incentive or rebates.  Collector must research immediately to check if
there are insurance coverage or assets that can
2. Occasional Delinquent (OD) cover obligation.
 → Most debtors become this type, because there is no
perfect matching of their income and expenses. 5. Premeditated Delinquent (PD)
 APPROPRIATE ACTION:  → A debtor, who, in the first place should have
 Collector must make follow-up or reminders earlier or been noticed and avoided. Needs fast, drastic and
more aggressively to be prioritized decisive collection efforts. 
3. Habitual Delinquent (HD)  APPROPRIATE ACTION:
 → This kind of debtor must be the target of strict  Collector must consult collection policy/
collection efforts to prevent his account from becoming a procedure, superiors or higher management for
bad account.  appropriate action.
 APPROPRIATE ACTION:
 Collector must act promptly and must implement strict
credit limit and term to enforce collection
effectively.
 WAYS IN COLLECTING
ACCOUNTS
1. Offer the debtor a clear choice of action. This is where your good
credit evaluation comes handy.
2. Endeavor to get a reasonably short repayment program because a
long one is bound to fail.
3. Plan and exert psychological collection efforts such as:
1. An appeal to the debtor’s sense of justice, fair play, duty, or cooperation
2. An appeal to his self esteem and pride. You may also appeal to the debtor’s
desire to prevent his loss of face, reputation or his good credit standing.
4. Look for vulnerable areas as a target for your collection efforts;
5. Seek third party assistance (debtor’s family, friends, coworkers) to
assist you in your collection efforts.
6. When finally, drastic or legal action is decided upon to enforce
collection, proceed as fast as you can, because a debtor generally does
things prejudicial or inimical to the creditor’s interest.
 SAMPLE COLLECTION
TACTICS
1. Double teaming. One collector acts as the good guy, the other one as the bad guy but both exploit
the debtor’s fear of losing credit and need for friendship.

2. The Turn-down. Refusing payment from a debtor who will not bring his account to an acceptable
balance or condition, being aware that he has the capacity and liquidity to do so.

3. Bad Boss. Aligning or identifying yourself with the debtor, explaining that, if the debtor will not
help or pay, you will get nowhere with your boss or superior.

4. Fighter’s Stance/ Feigning Anger. Be sure that it’s calculated to motivate the debtor to pay his
obligation or debt.

5. Placation (Himas system). There is always a soft spot in a person that can be worked to secure a
positive reaction.

6. Role-Playing. One collector acts as a supervisor / auditor mandated by Head Office to settle the
account or forward the account to legal department if a settlement is not agreed upon.
 STANDARD COLLECTION
PROCEDURE
1. PRE-PLANNING D. Ask fact-finding questions
A. Check whether our own company is at fault E. Present your proposal
B. Check previous collection efforts F. Overcome objections
C. Check the customer’s payment record 1. Determine specifically what the customer is
D. Find out who is the right person to talk with objecting to
E. Prepare fact finding questions (open-ended 2. Obtain agreement on the parts of your plan to
questions) which there is no objection
F. Determine your preliminary proposal 3. Work out an agreeable solution for those parts
of the plan to which the objection applies
G. Prepare an opening statement
• Identify yourself and your company
G. Obtain commitment from the
• Give a reason for the call
customer
• Make a strategic pause of at least 6 seconds H. Close
without saying anything 1. Summarize the payment commitments
2. Thank the customer
2. THE COLLECTION
A. Identify yourself and your company 3. FOLLOW – UP
B. Give a reason for the call A. Record your notes
C. Make a strategic pause of at least 6 seconds B. Update your records
C. Take appropriate action
D. Repeat, Repeat, Repeat
 DESMARK COLLECTION
POLICIES
1. Accepting payments without issuing official receipt is strictly prohibited
2. Accepting payments from a customer not under your area is not allowed unless under
specific orders by the branch manager.
3. Maintain proper business/professional decorum in front of customers. No drinking while
on duty. No drinking during delivery. Collectors are not allowed to accept
monetary/non-monetary tips from customers.
4. Always do a routine check on all units sold under installment, including accounts with
up to date payments or even advance.
5. All assumption of mortgage/accounts by new customers must be approved by manager
and with complete documentation (e.g. contract, promissory note)
6. Make sure that any data you give to the customer regarding their accounts is correct to
avoid future conflicts.
7. Always work as a team; request help/backup when negotiating with difficult customers.
8. Always work on a schedule. Make proper use of Itineraries
9. Utilize our collection documents such as promissory notes, compromise agreements, etc.
 ASSUMPTION OF
ACCOUNTS
• Based on our installment contract, Assumption of Accounts is
strictly prohibited. However, should an assumption of account be
requested, the following procedures must be conducted:
1. Unit must be deposited
2. The Interested Customer then submits a Credit Application Form
3. Credit Investigation will be conducted on new customer
4. If approved, unit will be released after Down Payment

Note: Down Payment should be payment of the delinquent amount plus 1

month making the account 1 month advance.
REPOSSESSION
PROCEDURES
 THE COLLECTION
STANDARD
1. 6 Months Old and Below Accounts (From Date of Purchase)
1. Few days after release (New Sales) – actual visit
2. Few days before due date (Updated) – reminder SMS
3. On the day of due date (Updated) – collection notice thru SMS
4. 1-7 Days (Overdue) – Actual Visit and notice of repossession
5. 8-30 Days (Overdue) – Compromise then Repossession
2. 6 Months and Above Accounts (From Date of Purchase)
1. Few days before due date (Updated) – reminder SMS
2. On the day of due date (Updated) – collection notice thru SMS
3. 1-7 Days (Overdue) – Actual Visit and/or Collection Notice
4. 8-30 Days – Actual Visit and/or Compromise Agreement
5. 31-60 Days – Actual Visit and/or Notice of Repossession
6. 60-91 Days – Actual Visit and/or Final Demand/Legal Letter
7. 91 and above Days - Final Notice / NOR / ATP / File Case
 ACCELERATION OF TERMS

• FORMULA OF OPTIONAL PAYMENT

DISCOUNT= OB – [{( TERM HIGH + TERM LOW )-( PAYMENT – REBATE –D/P)}+
INTEREST ]
2

Example :
1st Get the number of months then add three ( 3 ) months

from 6/3/2016 to 5/3/2017

11 months + 3 months = 14 months

Low term = 12 months with interest rate of 1.16

High term = 18 months with the interest rate of 1.25

2nd. Compute low term and high term
LOW TERM
LCP – D/P X INT. RATE / TERM + RABATE
67855 – 10000 = 57855
57855 X 1.16 = 67111.80
67111.80 / 12 = 5595
5595 + 200 = 5795

5795 x 12 = 69540
LOW TERM = 69540
• HIGH TERM

LCP – D/P X INT. RATE / TERM + RABATE

67855 – 10000 = 57855
57855 X 1.25 = 72318.75
72318.75 / 18 = 4020
4020 + 200 = 4220

4220 x 18 = 75960
HIGH TERM = 75960
DISCOUNT=OB – [{( TERM LOW + TERM HIGH )-( PAYMENT – REBATE –D/P)}+
INTEREST ]
2
DISCOUNT = 45240-[{( 69540+75960)-(48280-2200-10000)}+0]
2
DISCOUNT = 45240-( 72750 – (48280-2200-10000)+0]

DISCOUNT = 45240- ( 72750 – 36080 ) + 0]

DISCOUNT = 45240 – 36670 + 0

DISCOUNT = 45240 – 36670 AMOUNT TO BE PAID

DISCOUNT = 8570

2
 RESTRUCTURING OF ACCOUNT
• Formula for Restructure

LCP – D/P X INTEREST RATE / TERM+ REBATE

How to get interest rate for restructure

1.5 Per month
Ex. 1.5 x 6 = 9
9 / 100 = 0.09
0.09 + 1
Interest rate = 1.09
• LCP – DP X INTEREST RATE / TERM + REBATE
EX.
LCP = 30,000
20% for 30,000 – 6,000 = 24,000
D/P = 6000 LCP 24,000 x 1.09 = 26,160
INTEREST RATE = 1.09 26,160 / 6 = 4360
TERM = 6 4360 + 200
REBATE = 200 Monthly = 4560
 INTEREST
COMPUTATION
 COLLECTION REPORTS

• Aging of Receivables
• Collection Efficiency for the Month
• Collection Target for the Month
• Daily Collection Monitoring
• Repossession Report
• No of Accounts Deposited / Repossessed
• Price
• Appearance and Location
• Travelling Expenses / Gasoline Expenses
• Update on Problem Accounts and 60 months up
 AGING OF
ACCOUNTS RECEIVABLE
 UPDATING AGING OF
ACCOUNTS RECEIVABLE
COLLECTION EFFICIENCY TEMPLATE
 COLLECTION EFFICIENCY COMPUTATION

COLL EFF = COLLECTION_DUE

(COLLECTIBLES – CM_DUE) X 100%
 COLLECTION TARGET
COMPUTATION
COLL TARGET = TOTAL TARGET AMOUNT
COLLECTIBLES X 100%
DAILY COLLECTION MONITORING
 OTHER PROCEDURES
• Waiving Penalties and Interests

• Stopping Penalties and Interests or Suspension of Account

• Case Filing

• Filing of fully paid and closed accounts

 WAIVING OF PENALTIES
AND INTERESTS

• ACCOUNT OFFICER – NOT ALLOWED TO WAIVE PENALTIES

• MANAGER/OIC – UP TO 3 MONTHS PENALTIES
• AREA MANAGER – UP TO 6 MONTHS PENALTIES
• AUDITOR – UP TO 6 MONTHS PENALTIES
• REGIONAL MANAGER – UP TO 1 YEAR PENALTIES
• OPERATIONS MANAGER – NO LIMIT
 STOPPING PENALTIES OR
SUSPENSION OF ACCOUNT
Definition – these are accounts that are excluded from penalty
computation.

Note: Only certain accounts with qualifying circumstances can be

excluded from suspension of penalties.

Requirements:
- Status Report with signature of the AO and BM
- Attachment e.g. Blotter and HPG Report for
carnap units.

Approving Office: Maam Maricris Du-Lopez

 CASE FILING
• CASES MAYBE FILED AGAINST THE CUSTOMER AND/OR
CO-MAKER
• SUM OF MONEY – SMALL CLAIMS COURT
• SUM OF MONEY WITH ATTACHMENT
• REPLEVIN
• VIOLATION AGAINST CHATTEL MORTGAGE
• DOCUMENTS TO SECURE WHEN FILING A CASE
• FF
• FF
• FF
• FF
• PROCEDURE IN FILING A CASE
• CASES MAYBE FILED AGAINST THE CUSTOMER AND/OR
CO-MAKER
BEFORE YOU FILED CASE
 CUSTOMER, CO-MAKER AND HUSBAND/WIFE
 PROPERTIES = LAND TITLED, HOUSE & LOT, APPLIANCE,
CAR AND ETC…
 CONTRACT WITH SIGNATURE OF CUSTOMER AND CO-
MAKER
2 KINDS OF CASES
1. SMALL CLAIMS – SUM OF MONEY
2. VIOLATION AGIANST CHATTEL MORRGAGE ( CRIMINAL
CASE )
• SMALL CLAIMS COURT
 IS A SPECIAL COURT WHERE DISPUTES ARE RESOLVED
QUICKLY AND INEXPENSIVELY
 SMALL CLAIMS COURT THE RULES ARE SIMPLIFIED
AND THE HEARING IS INFORMAL
 THE ATTORNEYS ARE GENERALLY NOT ALLOWED IN
THE HEARING, ONLY THE PERSON WHO FILES THE
CLAIM IS CALLED THE PLAINTIFF..

EXAMPLE CASES TO BE FILED SMALL CLAIMS

 CARNAPPED UNIT WITH POLICE BLOTTER
 FIRE VICTIM
 CALAMITY INCIDENT
 APPLIANCE INSTALLMENT
• DOCUMENT TO SECURE WHEN FILLING A CASE
FOR SMALL CLAIMS

 APPLICATION
 LEDGER
 CONTRACTS
 DEMAND LETTER
 PROMISSORY NOTE 5 PHOTO COPIES WITH

 STATEMENT OF ACCOUNT AUTHENTICATED TO MTC OR MTCC

 STATEMENT OF CLAIM
 SECRETARY CERTIFICATE
5 PHOTO COPIES WITH AUTHENTICATED TO MTC
• PROCEDURE IN FILLING CASE FOR SMALL
CLAIM
1ST PREPARING OF REQUIREMENTS ( APPLICATION, CURRENT
LEDGER ANG CONTRACTS WITH SIGNATURE OF
CUSTOMER AND CO- MAKER )
2ND GO TO THE LAWYER OR ATTORNEY
3RD SEND DEMARD LETTER
4TH FILE TO SMALL CLAIMS
5TH GO BACK TO ATTY AND TO CHECK THE SAID DOCUMENTS
6TH MTC/MTCC
7TH GET CASE NUMBER
8TH HEARING
9TH FILE MOTION
10TH WRIT OF EXECUTION
11TH REPLEVIN
• VIOLATION AGINST CHATTLE MORTGAGE
EX. PAWNED UNIT
SALE UNIT
ASSUMED UNIT WITHOUT IFORMING OF COMPANY
BRINGING UNIT TO OTHER PLACES
ISSUED CHECK BUT CLOSED ACCOUNT ( STAFA )

• 30000 PAYMENT FOR FILLING CRIMINAL CASE

• PROCEDURE FOR FILLING
CRIMINAL CASE
1ST. PREPARING OF REQUIREMENTS ( APPLICATION,
CURRENT LEDGER ANG CONTRACTS WITH
SIGNATURE OF CUSTOMER AND CO- MAKER )
2ND GO TO THE LAWYER OR ATTORNEY
3RD SEND DEMAND LETTER
4TH PAID THE INCOME TAX RETURN IN BIR
5TH REGISTER OF CHATTEL TO REGISTER OF DEEDS (ROD)
6TH FILE CASE
7TH HEARING
 SKIP TRACING / LOCATING
MISSING CUSTOMERS
1. PRESENT ADDRESS
2. NEIGHBORS
3. CONTACT NO. / FACEBOOK
4. WORKING PLACE
5. SPOUSE WORKING PLACE
6. FATHER & MOTHER ( CUSTOMER AND SPOUSE
7. RELATIVES
8. PERSONAL REFERENCE
9. PROVINCIAL ADDRESS
10. SCHOOL/COMPANY ( FOR DEPENDENT )
11. BARANGAY
12. SPOUSE RELATIVE
13. CO-MAKER
 PRESENT ADDRESS
 WORKING PLACE
 CONTACT NO. / FACEBOOK
 FAMILY/ RELATIVE
 NEIGHBOS

OTHER INFORMITION
1. Previous employers
2. Trade references
3. Bank references
4. Landlords
5. Neighborhood business – grocery, sari-sari, barber shops,
etc.
6. Different government agencies, e.g.
1. Ministry of Trade/Bureau of Commerce
2. Securities and Exchange Commission
3. Social Security System
4. Government Service Insurance System
7. Different private/public utility companies/ agencies
5. Local power company
6. Sewerage System Offices
 REQUIREMENTS FOR
EXCLUDED ACCOUNTS

• Credit Application Form

• Credit Investigation Report
• Skip Tracing Report (Buyer and Co-maker) – if missing otherwise;
Status Report is acceptable
• Other Attachments e.g. Death Certificate, HPG Report
• Submit these forms to HO for approval particularly Maam Maricris Du-
Lopez
 THE ROLE OF THE AUDIT
DEPARTMENT
• Check if all credit and collection policies are followed
• Check if all credit procedures and guidelines are followed
• Check if credit reports are done accurately
• Check if Itineraries are made religiously, followed by collectors,
and promptly reviewed by supervisors.
• Check if proper monitoring of accounts is conducted by the
supervisor / manager
THANK YOU