ICE8000 General Collection Procedures for Accounts Receivable-World Credit Organization

4.7 General collection procedures for ICE8000 accounts receivable

4.7.1 Introduction

1. The ICE8000 accounts receivable collection program is a credit supervision program, which uses credit threats and credit penalties to force the debtor to fulfill its repayment obligations. At the same time, the ICE8000 accounts receivable collection procedure itself is also a dispute resolution procedure. International credit practitioners will handle and mediate the disputes between the debtors in a neutral and fair manner in accordance with laws, ICE8000 standards, reason, and transaction habits.

2. The general collection procedure of ICE8000 accounts receivable is:

1. Understand the arrears;

2. Create a credit reminder letter;

3. File with the World Credit Organization [WCO]

4. Delivery of reminder letter;

5. If the debtor repays the loan or has legitimate reasons, etc., the credit practitioners will cancel the reminder letter and add reasons and opinions for the cancellation. If the debtor refuses to pay without justified reasons, credit punishment will be imposed on the debtor's dishonesty according to the warning clause of the reminder letter.

Third, it needs to be reminded that although the credit management department of the creditor can collect accounts by referring to the ICE8000 accounts receivable collection procedure, but because it does not have the identity of an independent and neutral third-party credit institution, its collection effect will be negative It is much lower than the collection procedures implemented by ICE8000 credit agencies, and it is possible to have new disputes with the debtor or provide the debtor with new reasons for default.

Therefore, for the arrears exceeding a certain period and invalid after the ultimatum is issued, or the arrears in dispute between the two parties, it is recommended that the creditor entrust ICE8000 credit agency to collect. Next, the author takes ICE8000 credit institution as the subject of collection, and briefly introduces the general collection procedure of ICE8000. The World Credit Organization [WCO] has produced a detailed ICE8000 business debt collection operation guide, and the following content is compiled based on the 4.0 version of the guide.

4.7.2 Understanding arrears

1. Before dunning the account, we must first find out the arrears, so as to make a suitable dunning letter and determine a suitable dunning method. Understand the arrears, mainly divided into the following six parts:

1. Reasons for debt formation;

2. The efforts the creditor has made to press the debt;

3. The debtor raises the reason for the debt;

4. The creditor's opinion on the reasons for the debtor's debt;

5. The creditor's repayment requirements and claims;

6. Copies of evidence related to the debt.

Second, the creditor should guarantee the authenticity of the above information, and promise to take responsibility if the above information is not true.

3. The international credit practitioners shall review the information provided by the creditor, and if the information is incomplete, the creditor shall be required to make corrections.

4.7.3 Formal Requirements for Credit Dunning Letter

Correctly prepare the "Credit Commercial Debt Collection Letter", correctly determine the warning clauses according to the law, and the warning clauses must not conflict with the laws of the country where it is located and the standards of the ICE8000 international credit standard system.

The "Credit Account Collection Letter" should also meet the following formal requirements:

1. The title should be *** (ICE8000 credit agency)’s debt collection letter on *** (debtor).

Second, the facts are clear, objective and comprehensive, and the writing is fluent. Should include the following:

1. The reason for the formation of the debt (the statement of the creditor);

2. The efforts the creditor has made to press the debt (creditor statement);

3. The debtor raises the reason for the debt (the creditor's statement);

4. The creditor's opinion on the reason for the debtor's debt (creditor's statement);

5. Debt repayment requirements and warning clauses;

6. Objection notification clause, clearly informing the debtor of the right to raise an objection.

Third, there must be no insulting language and subjective language.

Fourth, there must be no illegal language.

4.7.4 Determination of Cautionary Terms

Warning clauses are an important part of making dunning letters, and they are also a reflection of the comprehensive ability of credit practitioners.

1. The principle of determining the warning clause

1. The principle of legality. The content of the warning clauses must not violate the mandatory provisions of the law.

2. The principle of rationality. The content of the warning clause should be reasonable.

3. The principle of doing what you say. That is: the measures mentioned in the warning content are all measures that can be implemented; the measures claimed to be taken in the warning clause must be taken after the expiration. Otherwise, it will lose its deterrent effect on the debtor. For example: in the warning clause, it is stated that if the debtor fails to pay or raise objections on May 20, 2008, it will make an internal complaint, and then this measure will definitely be implemented at that time. Otherwise, the debtor will lose fear of the reminder letter and the executor.

4. The principle of caution. For the measures that may or may not be taken, do not use deterministic language in the warning content, but use contingent language, such as: Step 5, the credit officer will consider issuing a reminder announcement. "What will be done" is a deterministic language, and "what will be considered" is a contingent language. However, it should be noted that the contingent warning language should also follow the principle of doing what it says, and the measures that cannot be achieved cannot be expressed in the warning content.

5. The principle of credit punishment from small to large. The various credit punishment measures in the warning clause should be sorted according to their intensity from small to large. For example: the first step is internal complaints; the second step is to remind interested parties to deal with each other carefully; the third step is credit warning.

2. Commonly used warnings

1. The ICE8000 credit agency notifies the debtor's important customers, partners and other interested parties, reminding them to be cautious in dealing with the debtor. Or notify the state agency where the debtor is located, reminding it to pay attention to the supervision of the debtor.

2. According to the "ICE8000 International Credit Standard System Credit Early Warning Standard", issue a credit early warning to the public on the International Credit Supervision Network (www.ice8000.org) and its alliance website to remind people of the fact that the debtor has not repaid the debt Careful attention to the debtor's commercial character and prudent dealings with debtors.

3. According to the "ICE8000 International Credit Standard System Public Complaint Standards", make public complaints on the fact that the debtor fails to repay the debt on the International Credit Supervision Network (www.ice8000.org) and its alliance website.

4. According to the "ICE8000 International Credit Standard System Public Exposure Standard", the fact that the debtor owes the debt is publicly exposed on the International Credit Supervision Network (www.ice8000.org) and its alliance website.

4.7.5 Delivery of credit reminder letters

There are five ways to deliver the dunning letter:

1. Direct service, that is, the company sends a special person to deliver to the other party. If the direct delivery method is used, a delivery receipt must be prepared in advance and signed by the other party. The date of receipt by the other party is the delivery date.

Second, delivery by mail, that is, delivery by post office or courier company.

3. Notarized service, entrusting a notary department to witness the fact of delivery.

4. Delivery by announcement. If delivery cannot be made by direct delivery or mail delivery, a delivery announcement can be issued in accordance with the ICE8000 standard. The announcement is deemed to have been delivered within 60 days.

5. E-mail delivery, delivery by e-mail.

4.7.6 Revocation of Credit Dunning Letter and Implementation of Warning Clauses

After the credit reminder letter is issued, it shall be handled according to the following circumstances, and a case closing report shall be issued to the creditor:

1. If the debtor repays or raises a legitimate reason for non-repayment, the reminder letter shall be revoked;

2. If the debtor raises an objection to the debt, but the evidence of both parties cannot prove its claim, the credit practitioners will review the evidence and objection of both parties in accordance with laws, regulations, and ICE8000 standards, and write professional opinions for the reference of both parties. If possible, ICE8000 credit mediation, arbitration, trial and other dispute resolution mechanisms can be initiated.

3. The debtor refuses to repay the loan without legitimate reasons, and implements credit punishment measures in accordance with the warning clauses until the debtor repays the loan.

The above content is excerpted from "Building an Integrity Unit - ICE8000 Integrity Management" (written by Fang Bangjian, free to use, but please indicate the source)