Project 25

Credit Investigator/
Collection Officer

Project 25 Flow of Presentation

Credit Investigator/Collection Officer
(CI/CO)
CI/CO-Job Description
Market Profile
Market Category- Civil Status
coverage
Process Flow
Tools of CI/CO for P25
CI/CO Checklist
P25 FDD Monitoring
Type of Verification
Collection Concern

P-25: Credit Investigator/Collection Officer

Job Description

JOB OBJECTIVE:
To ensure effective or efficient collection of Monthly Amortization from at
least 150 clients or PN balance of at least Php 8.0M, whichever comes
first. To conduct Field verification of new applicants on his assigned area.
A. Part Quantitative Performance 80%
Weight
Key Results Area
Performance Standard
20%
CI/CO on Collection Efficiency
90% CE for the last six months regardless of
branch
20%
All Credit Application Processed shall be
Turn Around Time (TAT)
100%. 3 hours less for Project 25.
20%
Over all CE
Total CE target
10%
Repo Rate
Max. of 10% (whole year)
10%
Non-Starter
0% non-starter account
B. Part 2 Qualitative Performance 20%
Weight
Key results Area
Performance Standard
3%
Attendance
Zero Absences
3%
Punctuality
Never Tardy/under time
5%
Compliance to policy
No deviation from the policies
5%
Dealing with the superior
Relates well with his superior
4%
Ability to work well with peers
Relates well with his peers
100%

Total

P-25: CI/CO
Job Description

Specific Duties and Responsibilities:

1. Takes responsibility in investigating/evaluating an applicant/ customer
a. Conducts Credit Investigation/Evaluation of Customers provided by Retail and
immediate superior
b. Assures that the Credit Investigation/Evaluation report is completely and
properly filled out
c. Make sure that the Credit Decision is based on the set criteria by the company
d. Endorse application and evaluation form to Financing Supervisor or Financing
Manager for checking
2. Helps Account Executive in Negotiating with delinquent accounts
3. Monitor Repossession Rate and Collection Efficiency
4. Assures cleanliness and orderliness of the branch
5. Abides with the set rules and regulations of the company
6. Conduct background Investigation for New Employees
7. Accomplish / Submit the following reports:
a. Daily Itinerary (TIMS)-Daily
b. Field Verification Report-Complete and accurate details
c. Credit Investigation and Evaluation Report-Daily
d. Credit Application Form together with CIER-Daily
e. ADAM ( Application Database Monitoring)-Update daily
f. CS Monitoring Report-Update daily and month end
8. Additional Duties and Responsibilities for RMT
9. Supervise Account Executives and take charge with approval of immediate superior
10.Monitor the daily collection of Account Executives
11.Assist in the collection, negotiation and/or repossession activities
12.Payment Collection with assign PR-with approval of FM, concurrence of RFM
13.Troubleshooting of Accounts
14.Provide assistance to Audit and Remedial Officer

P-25: Market Profile

Metro Manila

Tricycle Operator; 2%
Government
Employee;
5%
Tricycle
Driver; 1%
Ofw; 6%
Teacher; 1%
Self Employed; 11% Agriculture; 1%
Private Employee; 57%
Business; 16% Watch Listed (July2011 onwards); 0%
Watch Listed; 0%

PROFILE

NOA

PN BALANCE

PDR

CE

Private Employee

5,673

57.00%

350,773,984

24.84%

69.29%

Business

1,564

16.00%

80,441,996

23.76%

69.97%

Self Employed

1,070

11.00%

48,854,739

41.86%

50.59%

Ofw

617

6.00%

41,980,704

17.93%

72.56%

Government Employee

468

5.00%

19,346,264

25.57%

65.67%

Tricycle Operator

188

2.00%

16,947,865

19.44%

66.51%

Tricycle Driver

149

1.00%

11,009,323

26.62%

61.73%

P-25: Market Profile

North Luzon 1

Government Employee; 4%
Tricycle
Agriculture;
4% Driver; 3%
Ofw;
8% Tricycle
Business;
16%
PrivateOperator;
Employee;2%
51%
Teacher; 1%
Self Employed; 11%
Watch Listed (July2011 onwards); 1%
Watch Listed; 0%

PROFILE

PN BALANCE

PDR

CE

3,160

51.00%

199,773,071

23.94%

69.00%

Business

980

16.00%

54,779,801

20.40%

73.18%

Self Employed

684

11.00%

36,008,811

35.36%

50.12%

Ofw

469

7.00%

34,419,004

19.85%

72.64%

Agriculture

270

4.00%

18,624,136

26.97%

51.75%

Government Employee

265

4.00%

14,553,789

17.28%

81.99%

Tricycle Driver

174

3.00%

15,891,060

17.95%

54.01%

Private Employee

NOA

P-25: Market Profile

North Luzon 2

Tricycle Driver; 5%
Government Employee; 5%
Tricycle Operator; 5%
Teacher;
1%
Self Employed;
Private
Employee;
42%
Ofw;12%
5%
Watch
Business;
16% Listed (July2011 onwards); 0%
Agriculture;
9%
Watch Listed; 0%

PROFILE

PN BALANCE

PDR

CE

2,280

42.00%

135,739,826

27.34%

64.70%

Business

874

16.00%

48,917,906

22.55%

69.02%

Self Employed

624

12.00%

30,768,963

40.40%

48.76%

Agriculture

497

9.00%

38,344,339

21.27%

60.95%

Ofw

278

5.00%

19,054,771

24.60%

64.03%

Tricycle Operator

277

5.00%

25,046,979

18.76%

74.63%

Tricycle Driver

253

5.00%

22,039,220

11.65%

63.20%

Private Employee

NOA

P-25: Market Profile

South Luzon

Ofw; 5%Agriculture; 2%
Tricycle5%
Driver; 2%
Government Employee;
Tricycle Operator; 1%
Self Employed; 11%
Private Teacher;
Employee;
1%54%
Business; 18%
Watch Listed (July2011 onwards); 0%
Watch Listed; 0%

PROFILE

NOA

PN BALANCE

PDR

CE

Private Employee

3,935

54.00%

254,361,369

27.45%

63.99%

Business

1,307

18.00%

79,938,639

25.03%

61.17%

Self Employed

774

11.00%

38,489,099

40.78%

46.40%

Government Employee

391

5.00%

21,950,950

34.30%

62.69%

Ofw

388

5.00%

27,626,824

29.09%

56.92%

Agriculture

181

3.00%

7,996,316

28.14%

33.50%

Tricycle Driver

147

2.00%

9,814,438

40.51%

36.69%

P-25: Market Profile

Cebu

Teacher; 2%
Government Employee;
4%Operator;
Ofw; 4%1%
Tricycle
Self Employed; 12%
Agriculture; 1%
Business; 13%
Tricycle Driver; 1%
Private Employee; 63%
Watch Listed (July2011 onwards); 0%
Watch Listed; 0%

PROFILE

PN BALANCE

PDR

CE

2,246

63.00%

151,274,143

22.55%

73.79%

Business

465

13.00%

20,014,871

15.28%

78.79%

Self Employed

411

12.00%

17,967,647

32.45%

58.04%

Government Employee

146

4.00%

6,732,721

26.84%

75.73%

Ofw

141

4.00%

7,837,262

18.27%

74.14%

Teacher

55

1.00%

3,369,369

27.79%

58.57%

Tricycle Operator

27

1.00%

2,133,246

17.75%

63.37%

Private Employee

NOA

P-25: Market Profile

SouthMin 1

Ofw; 2%
Agriculture;
3%
Government Employee; 5%
Tricycle
Driver; 2%
Business; 15%
Teacher; 1%
46%
Self Employed; 24% Private
TricycleEmployee;
Operator; 1%
Watch Listed; 0%
Watch Listed (July2011 onwards); 0%

PROFILE

NOA

PN BALANCE

PDR

CE

Private Employee

2,053

47.00%

127,089,722

41.21%

52.62%

Self Employed

1,075

24.00%

60,903,828

47.01%

39.06%

Business

679

15.00%

26,405,893

37.74%

53.27%

Government Employee

221

5.00%

8,720,483

40.26%

49.77%

Agriculture

124

3.00%

5,527,676

36.87%

43.52%

Ofw

101

2.00%

4,877,324

39.51%

47.18%

70

2.00%

4,523,511

65.05%

25.29%

Tricycle Driver

P-25: Market Category

Salaried Employee

Single
Single living with Parents
Single HF
Single providing support to
the whole family
Single Rent
Single Renting
Married
Married with Own
Residence
Married Rent
Married Renting

Credit Process Flow

Additional Tools for CI/CO

CI/CO Checklist
P25 FDD Monitoring

Project 25 Type of Verification

Residence and Neighborhood

Verification
Employment Verification

Spouse Verification
Business Verification
Bank Credit Verification
Trade Verification

Objectives of Credit and Background

Investigation
To determine the willingness and ability of a
prospective debtor to repay a proposed loan;
To assist in the assessment of extent and nature
of risk involved.
To verify if all the information supplied by the loan
applicant is true.
To determine the character of the applicant,
particularly his/her reputation as a borrower.
To determine the applicants capability and
capacity to pay.

15

Importance of Credit and Background

Investigation (CBI)

APPROVED

DISAPPROVE
D

RIGHT

WRONG

PORTFOLIO
GROWTH AND
HIGH CE

INCREASE IN
PAST DUE
ACCOUNTS

OPPORTUNITY
LOSS

MINIMISE
HAVING
PROBLEM
ACCOUNTS
16

VERIFICATIONS (Interview)

17

Residence Verification
Should be conducted at residence of
Subject/Client
To verify if indeed Subject or Client is
really the owner of the residence
To know his lifestyle
To know his activities
For us to gauge if he really has a
good character, has the capacity and
if he is at the perfect condition to
apply for a loan
18

Questions during
interview
Questions to ask the Applicant:
True civil status
Residency (Length of stay, Previous
Residence)
Residence (Owned, Mortgaged, Rented,
Living w/ Relatives)
Landline Numbers
Permanent or Provincial Address
Status of Residency (Owned/Rent)
Number of Children/Family Background

19

 Employment (Address, Phone Number)

Business (if owns business)
Nature of Business
Bank References
Trade References
Financial References (Other loans)
Dependents and/or relatives staying
with the applicant
Loan Purpose
Personal References
Walk-in or Sales Agent Assisted
20

Neighborhood Verification

What does he/she know of the applicant and the family?

How long have they been residing in that residence?
How long they have been residing in the community?
What the familys sources of income are?
Who the members of the applicants household are, and
the occupation of each family member?
What is the character of the individual?
How others regard the applicant and his/her family?
How is the applicants reputation with regard to paying
obligations?

21

Interviewing Employer or HRD

Manager
Verify
Employment status
No job security yet for those under
probationary/contractual status

Current Position
Compensation and Benefits, if they are
willing to give the information
Dont forget to write down the name,
position and the telephone number of your
informant
22

Employment Verification
The proper source of accurate employment
information is from THE HRD
DEPARTMENT
The companys ACCOUNTANT or BOOKKEEPER
or OWNER is the proper person to talk to if
there is no HRD.
It is IMPROPER, INCORRECT, and even
UNETHICAL to verify employment from other
employees.
It is TOTALLY WRONG to verify an applicants
employment from FAMILY MEMBERS,
RELATIVES, NEIGHBORS, FRIENDS or
SALESMEN
23

Employment Verification (Who to

ask)

HRD / Personnel
Department
Accountant
Bookkeeper
Owner

Other Employees
Relatives
Neighbors
Friends
Salesman

24

Employment Verification
Employment verification over the telephone
is acceptable under the following
condition:
Number should be verified in the latest
telephone Directory
Call must be made directly to HRD or
ACCOUNTING, and NOT to the applicant himself
Never rely on the telephone number
supplied by the applicant, you will never
know who is on the other end of the phone.
25

Employment Verification
If the number does not match with the telephone
directory, proceed to call the number in the
directory and verify from the HRD or ACCOUNTING
staff

ON-SITE VISIT IS BEST

If the number in the directory is not yet in service
or cannot be reached
If the number on the directory is busy, TRY
CALLING AGAIN
If the applicant gives a CELL PHONE NUMBER as
employment reference, dont use it.
26

Collection

Terminologies
AE Account Executive
C&C Credit and Collection
CI Credit Investigation
CM Chattel Mortgage
CE Collection Efficiency
CIER Credit Investigation and
Evaluation Report
CNR Certificate of Non-Recovery
DEPO Deposited

Abbreviations &
Terminologies
FDD First Due Date
LEN Length of Term
MA Monthly Amortization
MC Motorcycle
MPOR Motorcycle Pullout Receipt
NOPO Notice of Pullout
NR Notes Receivable
NRR Notes Receivable report
PDR Past Due Rate

Abbreviations &
Terminologies
OR Official Receipt
PDA Past Due Account
PDC Post Dated Check
PN Promissory Note
PR Provisional Receipt
PTP Promise to Pay
REPO Repossessed
TARCOLL Target Collection
UCFC Unistar Credit and Finance
Corporation
NPL/A Non Performing Loans/Assests

Definition of Terms
Arrears an unpaid or overdue debt
Co-maker A person who stands to meet a
financial obligation in the event of the
makers default
Default A failure to repay financial debts
Maker A person who borrows money on a
promissory note
Promissory note A written promise to pay
at a fixed and determinable future time a
sum of money to a specified individual or
to bearer

Roles and Responsibilities

Ensures collection targets are met

efficiently through payment
collection, efficient account
monitoring and serving of notices
and reminders.
Conducts proper on time Field
verification
Daily remittance of Field Collection

Notice of Contract
Implementation
UNISTAR CREDIT AND FINANCE CORPORATION
1903 Jollibee Plaza Condominium, Emerald Avenue
Ortigas Center, Pasig City.
September 5, 2010
NOTICE OF CONTRACT IMPLEMENTATION
Mr. Roy Delos Santos
1456 Col. Licsi Street
Rotonda, Pasig City
Mr. Delos Santos,
In spite all the collection effort done by our company, You havent shown any
interest in settling your past due account. You are leaving us no choice
but to exercise our option to repossess the motorcycle unit encumbered
to Unistar Credit and Finance Corporation.
Make
: _______________________________
Model
: _______________________________
Amount Past Due
: _______________________________
We are giving you five (5) days to finally settle your arrears. If not we will
immediately implement our option to revert the MC Unit.
Sincerely,
Unistar Manila Business Center

Basic Collection Guidelines

First MA is due a month after the
release of MC Unit
Branch Payments are to be handled by
the Accounting Staff / BAIC.
Field Payments to be handled by the
Account Executives
Only the Accounting Staff are allowed
to make ORs

Basic Collection Guidelines

(Rebates)
Php. 200 Rebate for on-time branch
payment
No rebate for on-time field payment

Basic Collection Guidelines

(Penalties)
Penalties are waived for payments
delayed up to 5 days.
Penalty = MA x 60% x #days delayed /
365 (or 366 depending if leap year)
Payments made by customer is first
used to settle penalties.

Setting Targets
Target Collection

Target Collection (TARCOLL)

The amount of money that needs to

be collected from all customers for
the given month.
Each AE has a separate TARCOLL
based on the accounts they are
handling

TARGET COLLECTION (TARCOL)

=

Current Month Due

+
Lapsed and Last Month
Repo-In
+
Previous
Month Arrears

KNOW YOUR
CUSTOMER
Unistar Credit and Finance Corporation

Typical Excuses from

Customers

Financial Difficulty
Sickness in the Family / Accident involving
the MC
Delayed Remittances / Delayed Salary
Releases
Carnapped/Impounded MC
Tuition Payments/Unexpected Expenses
Retrenchment from work
Problems with Registration, Plate Number,
Release of Chattel Mortgage

Reminders for Cash

Payment (Branch)
Payment can be made to any branch,
Branch coordination is needed.
Accounting Staff should coordinate
first with AE handling area to
properly verify arrears if customer is
not able to present previous
payment receipt.
Agreement between AE and Client is
sometimes evidenced by a PTP
Notice. That is being filed by the
BAIC.

Check Payment

When receiving PDCs as payment,

the following are important:

Payee should be UNISTAR CREDIT AND

FINANCE CORP. for MA or penalty
collections
Date should be at least 3 days* (depends on
the regional clearing dates) before the due
date for the customer to get a rebate.
AMOUNT in WORDS and FIGURES be
consistent.
For corrections, let the customer counter sign
using their complete signature
Amount of check should be Net of Rebate.

Official Receipt

Provisional Receipt

Action Form
UNISTAR CREDIT AND FINANCE CORPORATION
33/f One Corporate Center, Julia Vargas Ave., Ortigas Center, Pasig City, Metro Manila

ACTION FORM for DELAYED PAYMENTS

Account No.
Make/Model

DATE

CUSTOMER:_________________________________________________________________
ADDRESS:___________________________________________________________________

ARREARS

REASON FOR PAYMENT DELAY

BRANCH:______________________
CLUSTER:______________________

ACTION TAKEN

Term (Mos.)
FDD

RESULT

AE Initial

FS/FM Initial

First Demand Letter

Second Demand Letter

FM Demand Letter

Thank You!