CCM Collections & Recovery

Question 1

What is the primary goal of the collections process?

Accepted Answer

Recover outstanding debts

Answer

Penalize late payers

Answer

Maximize interest revenue

Answer

Promote sales incentives

Question 2

What is a key benefit of early intervention in collections?

Accepted Answer

Increases repayment success

Answer

Improves company branding

Answer

Reduces customer base

Answer

Minimizes reporting duties

Question 3

Which method is commonly used when internal collection efforts fail?

Accepted Answer

Third-party collection agencies

Answer

Online discounting

Answer

Product returns

Answer

Advertising credits

Question 4

What legal option may be pursued if a debtor refuses to pay?

Accepted Answer

Litigation

Answer

Credit reporting

Answer

Customer survey

Answer

Performance bonuses

Question 5

Why is it important to document collection efforts?

Accepted Answer

To support legal processes

Answer

For internal promotions

Answer

To audit employee bonuses

Answer

To increase customer charges

Question 6

What is a 'write-off' in collections terminology?

Accepted Answer

An uncollectible debt

Answer

A reward program

Answer

A penalty fee

Answer

A customer discount