Invitation for Accreditation of Collecting Agent

INVITATION FOR ACCREDITATION OF COLLECTING AGENT

We are looking for the services of competent and experienced Collecting Agent with professional collection officers who are honest and possess good work ethics, and are willing to employ their expertise in conducting collection activities from delinquent borrowers located in various provinces nationwide.

The Collecting Agent’s collection techniques should be employed efficiently and amicably to maintain goodwill between the borrowers and the contracting party, particularly the Department of Agriculture-Agricultural Credit Policy Council (DA-ACPC).

Depending on its area of coverage, the Collecting Agent will undertake collection activities nationwide, particularly in Regions CAR, I, III, IV-A, IV-B, V, VI, VII, IX, X, XI, XII and CARAGA.

Accreditation of qualified Collecting Agent shall be subject to the following terms and conditions:

I.  Duration.

One (1) year upon the signing of a Collection Agreement between the parties, subject to renewal upon review and discretion of the DA-ACPC.

II.  Scope of Service

·  Demand payment of delinquent accounts of individual farmer-borrowers and institutional borrowers (i.e. LGUs, cooperatives, associations) under the various agricultural credit programs implemented by the Department of Agriculture and its attached agencies.

·  Immediately remit payments on the next banking day to the account of the Bureau of Treasury maintained at the LandBank of the Philippines.

·  Provide monthly collection and status reports, including recommendations and updates on actions taken and progress of collection of endorsed accounts.

III.  Collection Fee

The collection fee, to be agreed by both parties, but subject to Commission on Audit (COA) and Department of Budget and Management (DBM) regulations, to be paid by ACPC to the Collecting Agent, shall be computed based on actual collections deposited to the Bureau of Treasury account. Collection fee rate shall be proposed by the prospective collecting agent.

IV.  Collecting Agent Qualifications

·  Must be active in the collection business for the past five {5) years.

·  Must be duly registered with the Securities & Exchange Commission (SEC) or the Bureau of Domestic Trade (BDT), Cooperative Development Authority, or other government regulatory bodies, and accredited by the Department of Social Welfare and Development (DSWD)

·  Must have profitable operations for the past three years prior to the filing of its application.

·  Must not have any past due obligation with any financing institution for the last three years.

·  Must have at least an average collection rate of 80% on assigned accounts for the last three years.

·  Must have a past-due loan ratio of not more than 20% as of the latest financial period/report, if any.

·  Must have the organizational structure and manpower complement composed of highly trained, skilled and expert personnel in the areas of collection, skip tracing, tele-collection, motorized field collection and negotiation.

·  Must have a minimum of 5 collectors, the number of which will depend on the number of accounts to be endorsed in the areas of coverage.

·  Preferably have established good working relationships with government offices, particularly the Department of Agriculture, Department of Agrarian Reform, Provincial, Local, Municipal and Barangay Government Units

·  Preferably a member of good standing in a Collection Agency Association.

·  Must pass the evaluation criteria set by ACPC.

V.  Documentary Requirements

·  Audited Financial Statements, stamped and received by the Bureau of Internal Revenue.

·  Articles of Incorporation/Cooperation/By-Laws registered with SEC, CDA or any other government regulatory body.

·  Organizational Profile, to indicate background, business activities, capitalization, among others.

·  List of names and addresses of Board of Directors and key officers.

·  Board Resolution certified by the organization’s Board Secretary, or Secretary’s Certificate approving the organization’s intent to apply for accreditation as Collecting Agent.

·  Names and addresses of bonded, or to be bonded, accountable/collection officers, amount and/or estimated amount of the bond, including the nature of the bond.

·  List of all creditors and their addresses and the corresponding contact persons.

·  List of clients with Collection Agreements, and their addresses and the corresponding contact persons.

VI.  For interested parties, please submit your letter of intent and collection proposal incorporating the collection fee rate, together with the above documentary requirements, to Mr. Jonathan S. Giray or Maria Adoracion T. Garcia, Division Chiefs of the ACPC Fund Management Staff, with office address at 28/F One San Miguel Building, San Miguel Avenue, Ortigas Center, Pasig City.

VII.  Organizations that pass the criteria and evaluation of ACPC shall undergo the bidding process as required by the Commission on Audit.