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Tagged: 3 months 3 weeks ago
- 14/10/2020 at 12:10 am #2184AdminKeymaster
Q: Why is VENTURE proposing to write off such a large amount?
A: VENTURE makes every effort to collect outstanding monies from errant Members and traditionally we have not had a practice of writing off uncollectible accounts. Many of the accounts are statute barred and considered uncollectible as all collection measures were adopted with no success.
• Telephone calls and letters
• External Collectors
• Legal Avenues – Letters of Demand up to registering Judgment
• Whereabout ads
In spite of our aggressive techniques, some Members cannot be located and, for some of the older debts, the debts are statute barred. We have been cleaning up the portfolio by going after the delinquent Members and failing to locate and/ or obtain payment for the debts, we are left with no option than to propose write off as recommended by our Auditors. We note that since 2017 we have tightened our risk parameters / collection strategies to mitigate the possibility of non-payment.
Q: What is VENTURE doing to collect monies already written off?
Although the debts are written off, the debts with the associated Members, are lodged with
o AV Knowles
o External Collector
The effect of this is to (a) continue to pursue the Member for full debt satisfaction (b) to affect
the Member’s credit rating and further borrowing capacity. This strategy has had some success and we continue to pursue same.
Q: Is VENTURE advertising the names of persons who are not paying?
In the pursuit of locating vehicles and Members, we publish on an ongoing basis as recommended by the membership a listing on our website, Facebook page, in-house monitors and newspapers periodically.
Q: Good day, with respect to the amount of bad loans described in the AGM, how come there are no/very little repossession of vehicles/houses for sale?
A: VENTURE has, in fact, been able to repossess property held as collateral for loans. As far as possible VENTURE collaborates with members within a prescribed context as enshrined in our policy framework. In this context, we unfortunately continue to exercise our rights as mortgagees and continue to repossess/foreclose on mortgaged vehicles and properties. These are advertised (a legal requirement) periodically via our website, social media, in-branch monitors and the local newspapers.
Q: Is the 2020 budget being proposed still achievable given all that is happening with businesses in T&T?
A: In short, the answer is yes. With the onset of Covid-19, your Society embarked of several initiatives to achieve the planned budget. It was anticipated that the Country would be reopened, and that business would have improved. We continue to see good trends in our business and are therefore optimistic.
Q: Loans being your primary source of income has have dropped significantly over the past year and with covid is expected to reduce further. What sustainability measures have you put in place to circumvent this and noting the changes outlined in the national budget?
A: You are correct. Loans continue to be VENTURE’s primary source of revenue. Despite Covid-19 challenges, we continue to encourage members to move their business from the banks to the CU at equal of better terms and conditions. This has proven to be successful and we encourage all members to do this.
Q: The SC expressed concerns about the legacy loans. Could you expand on what is being done about that?
A: The errant legacy delinquent loans refer to those loans that were granted prior to 2017 and are delinquent. Significant resources have been focused on recoveries with the oversight of a Board sub-committee. These delinquent loans are referred as disputes to the Commissioner of Co-operatives with the aim of prompting payment, restructuring, legal or further recovery action.
Q: My concern is the increasing bad debt written off over the years. What are we doing to reduce getting to this stage especially now with the covid19 pandemic? For example, will the recovery department contact persons at the first miss payment etc.
A: Your concern is valid, and VENTURE has proactively structured the Credit Administration and Collections Departments with highly experienced personnel who assist in reviewing the quality of new loan proposals and the pursuit of recoveries. The Credit Committee has also been working closely with the office in this regard. As soon as a payment is missed the debt is assigned to the Collections Department to contact the member.
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