Lesson 6 of 8
Late collections and recovery: agencies, legal action, collateral and debt sale
When reminders, contact and payment plans have not brought a loan back, the lender has to decide how to recover what it can. This lesson sets out the options a supervisor expects lenders to weigh, how outside agencies and servicers are used and controlled, what legal action and collateral really return once time and costs are counted, how to compare the routes with a recovery-rate formula, and what changes when a loan is written off or sold.
Published 16 October 2026 · Listen to this lesson
In this lesson
- When early collections have not worked
- Agencies and servicers: who does the work, who stays responsible
- Legal action and collateral: what they return once time and costs are counted
- Comparing routes: the recovery rate
- Write-off and debt sale
- Questions to settle for late collections