ABSTRACT
The key aim of the collections function with the bankcard issuing business is the management of risk and curtailment of losses relating to cardholder receivables. The management of an efficient collections function requires an understanding of four key areas. These are: an appropriate department organizational structure, efficient undertaking of daily activities, full use of supporting systems and applications and risk management. In this case, the collections department must work closely with the customer services department especially for early-stage collections to bring the cardholder back to current status. Collection staff must possess the rare quality of efficient empathy. The effectiveness of collection lies in persuading the cardholder to attach a higher priority to paying back the debts over liabilities and obligations they may have to other lenders. Training is a critical element in the development and success of issuer collections.
