A RESPONSIBILITY TO OPTIMIZE BAD DEBT POSITION 

Observation
The Accounts Receivable Department follows up on overdue accounts for 90 days. Thereafter it is charged off as bad debt and amounts exceeding $500 are handed across for third party debt collection, for a further period of 90 days. Over the past five years, approximately {$150 million} has been written off on which no action, either internally or externally, is currently being taken.

Recommendation
Leverage first party receivable projects that specialize in automating follow up and recovery of charged off debt that lasts approximately one month. This can be done without cost and without impacting the existing business process. The outcomes include completeness of the fiduciary role for the recovery of any amounts due but not received; potentially lowering future required bad debt provisioning levels and lastly, the provision of new additional options that facilitate clients returning to financial fitness and delivering on consumer empathy.

Management Response


Action