Primary Responsibilities Of A Personal Loan Collection Officer

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The granting of a loan was made on the conditions that the borrower assumes to repay his obligations by all means possible and in accordance with the agreed terms and conditions. In case of delays in the regular payment, the loan will assume a past due status and will be classified as such. In line with this, the lending company's standard procedure is to transfer the loan accounts to the personal loan collection officer.

A personal loan collection officer is the person who will be tasked by the financing company to handle loans whose borrowers have defaulted in their loan payments. This is to immediately distinguish delinquent accounts from those that are not. The primary objective in transferring the loan under the personal loan collection officer's is to intensify collection efforts.

As much as possible, the lending company would like to collect the amount they granted to the borrower all according to what was originally agreed upon. Loans in default often involve additional expenses such as legal proceedings and attorney's fees which can affect the lending company's income. Aside from this, their cash flow projections will be disrupted which may deprive the company of projected investments or other undertakings using the money that should have been collected.

In line with the collection efforts to be undertaken, the primary responsibilities of the personal loan collection officer are as follows:

1. The personal loan collection officer will explore avenues that will allow the collection of payments from all delinquent loans in accordance with the standard collection process established by the lending institution.

2. Create as well as supervise the modification plans for the repayment of loan; this is where refinancing or restructuring of the loan will be recommended to the borrower in default. As much as possible, the borrower in default should be convinced regarding this option to prevent the account from accumulating past due interest and penalty charges.

3. The personal loan collection officer will monitor and coordination with the personnel in charge of personally handling the collection activity;

4. Handle accounts that are overdrawn which pertain to credit cards.

5. The personal loan collection officer will prepare reports for use of superior officers of the lending company. It will detail the collection activity being undertaken and the progress behind each and every account being handled;

6. Initiate and administer the legal process necessary to acquire repossession property held as collateral as well as its subsequent disposal.

7. The personal loan collection officer will act for and in behalf of the lending institution regarding legal proceedings being undertaken by the collections attorney;

From time to time, the personal loan collection officer will perform other duties related to the intensification of the collection effort which include discussing refinancing options with the borrower whose account has become past due. Since collection efforts are always described as intensified, the efforts exerted by a personal loan collection officer can sometimes be misconstrued as harassment on the part of the delinquent borrower.

Personal loan collection officers are not supposed to communicate to the borrower at inconvenient places or time. They are strictly prohibited as well as to use violence, harassment, or any abusive conduct etc. Otherwise, the borrower has every right to exercise his right and file a complaint with the FDCPA.

The personal loan collection officer is part of the team in the monitoring of the company's cash flow, the cash flow being the lifeblood of lending institutions. It will be the responsibility of the personal loan collection officer to help in contributing to the company's funds by intensifying collection efforts on all past due loans.