Word of the Week: Appropriate Collections Practices

Word of the Week – Appropriate Collections Practices: A Client Protection Principle that states that the debt collection practicesof providers will be neither abusive nor coercive.
Appropriate collections practices, while they may be firm, treat clients with dignity even when they fail to fulfill their obligation and do not deprive them of the ability to earn their livelihood.
Spotlight Fact: Data from Beyond Codes—the research arm of the Smart Campaign—has shown that appropriate collections practices is one of the strongest principles in MFIs that were assessed during the project.  There is also evidence that this principle is stronger in regulated institutions, but at the same time, business conduct norms are more important than regulation when it comes to institutionalizing the principle.
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