How does Mobiloan manage adverse loans?

If a loan reaches its instalment due date without any captured receipt, an internal countdown begins, preparing for potential handover if payment is not received.

Internal Countdown and NCR Sec 129(A) Notification: Twenty days before the loan reaches the minimum number of permissible auto-handover days, an SMS with the NCR Section 129(A) notification is sent to the client. During this period:

• The client status changes to External Debt Collector Hold status.

• The loan account status reflects as Overdue.

If no payment is captured by the end of the permissible auto-handover period:

• The loan account status locks as Handed Over, and this change is submitted to the credit bureau via SACCRA.

• All open collection tickets for the client will close with the reason: "Loan set to Handed Over".

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Automatic Loan Write-Off Process and Related Changes

If a loan that has already been Handed Over remains unpaid until it reaches the permissible auto-write-off period, further actions are triggered.

• Write-Off Trigger and Status Change: Upon reaching the auto-write-off threshold without a captured receipt:

  • The client’s account status transitions to Bad Debt Hold.

  • The loan account status is locked as Write-Off, and this change is submitted to the credit bureau via SACCRA. This status is final and cannot be altered.

• Collection Ticket Closure: Any active collection tickets for the client will automatically close with the reason: "Loan set to Written Off".

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NCA Section 129 details the steps credit providers must take when a consumer's account becomes delinquent. It mandates the following:

Notice of Default

Credit providers are required to send a formal written notice to the consumer. This notice must include:

1. The outstanding amount due.

2. The due date for payment.

Consumer Options

The notice should outline the options available to the consumer, such as:

• Paying the full amount.

• Negotiating a payment plan.

• Seeking assistance from a debt counselor or relevant authorities.

Legal Action

If the consumer fails to respond or resolve the arrears, the credit provider may proceed

respond to the notice or take necessary action, the credit provider may initiate legal proceedings to recover the outstanding debt. By complying with Section 129, credit providers can ensure that they are acting fairly and ethically while protecting their interests.

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For more information on enabling automated adverse settings, click select the link below

Adverse Configuration | Mobiloan User Guide