Debt Collection Policy

Default Prevention

  1. Required Collection Letters and Calls
  2. Collection Letters will be sent whether or not Borrower(s) contact has been made until the account becomes current or defaults.
  3. Skip tracing methods must be used when warranted.
  4. At a minimum, the following call and letter campaign should be used if no Borrower or Cosigner arrangements have been made. Multiple attempts on the same day will count as one attempt.
  5. One contact is defined as actually speaking to either the Borrower or Cosigner once or more during a single day.

Collections Activities:

Range                          Initial Trigger                       Activities

1-30 Days                   6 to 9 Days                       Written= 1 Letter | Telephone= 2 Contacts or 3 Attempts

31-60 Days                 31 to 33 Days                  Written= 2 Letters | Telephone= 2 Contacts or 4 Attempts (Until resolved) | Past Due Notice on Statement

61-90 Days                 61 to 65 Days                  Written= 2 Letters | Telephone= 2 Contacts or 4 Attempts (Until Resolved) | Past Due Notice on Statement

91 -120 Days              91-95 Days                       Written= 2 Letters | Telephone= 2 Contacts or 4 Attempts (Until Resolved)

150 Days                    150                                      Demand Letter

180 Days                    180                                      Default

Claim Activity           As per  requirements       Claim Filed by Supervisor

Notes:

  • A “Contact” is defined as speaking with the borrower or the party (co-signer, reference, etc.) as defined within the requirements. An “Attempt” is an effort made to contact the borrower and includes leaving a message.
  • If the telephone number of record = a foreign number and the Servicer is not able to call (economically or technically) then written correspondence will be increase by one (1) per Range.

Credit Bureau Reporting

Servicer shall report the Borrower and Cosigner to at least (1) national credit reporting agencies on a monthly basis. Reporting will occur on the last day of each calendar month.  Delinquency reporting will begin once the Borrower is at least 60 days delinquent.  At that point, both the 30 day and 60 day delinquency will be reported.

Servicer shall continue to report account delinquency until the loan is brought current.