Debt Collection Case Study 1:
Retail Loan Book


Early in 2012 a client in the retail loan market asked Blake to improve their debt collection results on their late stage portfolio in order to reduce
provision for bad debts and write-offs.

After meeting with management to identify their requirements, Blake identified a sudden spike in arrear accounts and agreed to run a full health
check to identify causes and ensure systems and debt collection strategies were running effectively.

The findings of the health check revealed that the client needed to enhance the debt collection capabilities through more effective use of
scripts, content of letters and other communication tools. There was also a need to split the collection team according to staff strengths.

The health check also highlighted that the client needed better Business Intelligence (BI) and MIS reports to highlight areas of concern with
respect to debt collection efforts and efficiencies.


Blake engaged in the following action plan:

• Splitting the campaign into specialised teams with each handling a different delinquency level.
The more forceful staff was then allocated to the higher delinquency accounts.

• Adopting new scripts and correspondence to complement the various teams with an escalation as the account went higher into arrears.

• Enhancing the BI. The BI and Development team together developed MIS reports that assisted the debt collection managers to identify and
manage exceptions and react quicker when the collection results were slipping.

• Implementing various targets (productivity, Promise to Pays and rand value collected)
for the debt collection staff linked to an incentive scheme.

• Designing an auditing and training programme.
This entailed staff being audited daily to ensure they were adhering to the new scripts and the collection call was of the required standard.
On-going training programmes were created for staff not achieving their productivity and collection targets.


• Blake played a significant role in assisting the client to improve their debt collection results
and more importantly reduce their write-off provisions.

• Blake outperformed their competitors working on the same books.

• Blake was awarded the top External Debt Collector for the 2013/2014 period for their
contribution on the Late Stage campaign and for the Recoveries campaign.

• The client also rewarded Blake with an increase in mandate due to the consistently
good debt collection results over the past two years.