To: Collections Manager From: Perso

To: Collections Manager
From: Personal Loans - Product Manager
Subject: Growing complexity

You‘re already familiar with the personal loan portfolio which is comprised of unsecured personal loans, with average loan size of $2,000. Last year, the underwriting strategy was aggressive and employed a relatively low underwriting cut-off score. In the past, we were not able to take differentiated treatment across the risk groups. We feel that our collections effectiveness suffered from the lack of risk-based treatment.

First you’ll need to approved the revised cut-off score for underwriting. Please review the portfolio results and financials to date, and then we’ll ask you to help us determine the cut-off score. Next, turn your attention to improving the risk based treatment strategy for collections. Finally, you’ll need to make a capacity plan and make investment decisions.

Thanks for taking on these additional responsibilities.