Receivables Management of Corporates, MSMES which includes;
- Follow up of receivables through systematic, professional, dedicated and customized emails and other communications.
- Receivables advisory based on market information, past payment history, MIS on the receivables portfolio such as the ageing, payment history, default migration index, recovery advisory, legal advisory, dashboard of receivables portfolio at fortnightly, monthly intervals, funding options and pricing of open credits.
Dunning & return mail tracking
Following notices are developed through the aging of the delinquency
- Default intimation notice
- Notice on adverse impact on credit rating with Credit Bureaus
- Pre-repossession notice
- Guarantor notice
- Loan recall notice
- Conciliation notice
For effective communication, the notices can be issued in English and Regional languages.
ARRMS also provides MIS tracking of the notices viz:
- Delivery/ acknowledgement using bar code technology.
- Return notices with the reason of return analysis is studied to pick up “skip” accounts early for further field / tele- calling interventions.
Pre-Litigation Lok Adalat
Lok adalat or "the peoples court" is a quasi judicial forum for amicable settlement of disputes out of court . The Legal Services Authority Act, 1987 inter alia provides for reference of any dispute prior to litigation to Lok adalat for a possible settlement which is acceptable to parties in dispute. The award passed by the Lok Adalat basis mutual consent of the parties in dispute is deemed to be a decree of a civil court.
Proceedings under Negotiable Instruments Act / Payments and settlement systems Act.
Managing entire litigation process through law firm/s which include:
- Issuing notices
- Initiating criminal complaints
- Service of summons
- Execution of warrants
- Skip tracing
- Conducting conciliation camps
- Follow ups and negotiations
Manages entire arbitration proceedings from the date of delinquency till the award through law firm/s which include:
- Issue of demand notice
- Reference to arbitrator
- Conducting arbitral proceedings
- Enforcement of Interim Awards under section 17
Execution of Awards and Decrees
ARRMS is the only Execution Service Provider (ESP), providing services for execution of Arbitral Awards and Judgments across India. ARRMS successfully employs an innovative model that blends legal and collection process. It ensures, filing of execution proceedings in the courts under whose jurisdiction the debtor/defaulter resides or carrying on business or his/her/their properties are situated. The legal process ensures recovery of debt by attachment and sale of assets or arrest or both. ESP services include the following:
- Follow-up and negotiate with defaulters during the arbitration process
- Initiate and file Execution Application for enforcement of final award
- Identify borrower/ co-borrowers /guarantors, moveable and immoveable properties belonging to them
- Skip tracing
- Negotiate with borrower for settlement
- Attach the properties through the bailiff/court
- Conduct process of sale such as valuation, advertisement, auction etc
- Taking all possible steps for the recovery
Enforcement of Securities
- Managing legal services for filing Application before the District Magistrate for the recovery of possession of assets under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement and Security Interest Act, 2002.
- Taking actual possession of the assets.
- Maintenance and management of assets.
- Valuation of the assets.
- Identify buyers to secure maximum value of the assets.
- Sale of the assets by public auction, private treaty etc.
- Identification of business entities for take-over, management etc. of the assets.
ARRMS focuses on strategically timed legal interventions through the ageing of the delinquent account with an emphasize on following due process of law adhering to all judicial, regulatory and statutory guidelines.. ARRMS has a proven track record of successfully managing multiple legal proceedings for each delinquent account, which include resorting to alternate dispute resolution modes, arbitration, civil and criminal proceedings for recovery of debt.
Micro management of legal interventions for effective debt recovery requires presence in the district/place of the delinquent borrower and local knowledge. The last mile efficiency is facilitated by a strategic alliance with established, professional legal firms across the country and employment of own field team at each location for enhanced day-to-day co-ordination. Strong district level presence coupled with strategic insights and recovery expertise significantly enhances productivity leading to improved collection efficiency. Selection of legal interventions are based on the ageing of the debt and feed back on solvency and availability of the defaulter coupled with different strategies for mortgage, home equity, auto loan, SME etc.