On Debt Collection: Like Family and Friends or Like Foe
One goal of informal money lenders and formal financial service providers is to have a steady stream of credit-worthy customers who pay off their high- or low-interest loans on schedule. This serves to keep the cycle of credit steady and available throughout business cycles. Whatever happens when debtors are running late with their scheduled repayments reveal the value systems of the creditors. On one hand, creditors may be patient and understanding, offering extension periods to hitherto faithful customers. This is with an understanding of the financial history of such customers with the firm. Customers who may have been shown consideration with piecemeal payment options are likely to retain patronage of such financial service firms. On the other hand, aggressive firms may demonstrate draconian methods (for instance, as reported by customer reviews of Fintech firms operating in Nigeria). These include recruitment of unpleasant customer service representatives, who use ope