Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Feli Capron
Reviewed date: 2025-07-24
Next review date: 2026-07-24
This SOP details the step-by-step process for managing the departure of customers from Easyterms. This includes customers who have fully repaid their loans, those who wish to terminate their relationship for other reasons, or those whose relationship is terminated by the company due to non-compliance or other factors. Its purpose is to ensure a smooth, compliant, and professional exit process, maintain data integrity, and facilitate proper record-keeping.
This SOP applies to all Finance Officers, Debt Recovery Officers, and relevant administrative staff involved the customer relationship management and off-boarding process for all credit products offered by the company.
Client: Initiates departure request (if applicable), settles outstanding obligations, and provides necessary information for account closure.
Finance Officer: Primary point of contact for the client; responsible for confirming account status, addressing client inquiries, facilitating final settlements, and gathering feedback.
Collections Department (if applicable): Handles cases involving legal disputes or complex termination clauses.
Accounts Department: Verifies final account balances, processes refunds (if any), confirms full repayment, and issues statements. Manages the deactivation of client accounts in the Loan Management System (LMS) and archives client files.
5.1.1 Full Loan Repayment: The Finance Department notifies the Loan Officer upon confirmation of a client's final loan repayment.
5.1.2 Client-Initiated Termination: A client formally requests to terminate their relationship (e.g., through a written request, email, or in-person declaration).
5.1.3 Company-Initiated Termination: The company decides to terminate a client relationship due to policy violations, fraud, or other reasons as per relevant policies (e.g., Loan Collection Policy FIN-003).
5.2.1 Immediately upon identification of a departure event, the Loan Officer accesses the LMS to verify the client's current account status, including any outstanding balances, pending transactions, or active products.
5.2.2 The Finance Department provides a final statement of account, confirming all balances, including any due amounts, overpayments, or charges.
5.2.3 Identify any collateral held by the company and its status.
5.3.1 For Full Loan Repayment:
Inform the client of the successful full repayment and confirm the closure of the loan account.
Issue a "Cancellation Letter" and a final statement of account.
Explain the process for retrieving any collateral held.
Offer the opportunity for feedback on their experience with the company.
5.3.2 For Client-Initiated Termination:
Acknowledge the client's request and confirm their intention to terminate the relationship.
Clearly communicate any outstanding obligations (e.g., final loan payments, fees) or potential refunds.
Explain the process for settling these obligations or receiving refunds.
Address any concerns or complaints the client may have, attempting resolution as per the Customer Complaint Resolution Policy.
Obtain written confirmation from the client for the termination request.
5.3.3 For Company-Initiated Termination:
Prepare a formal Termination Letter outlining the reasons for termination, effective date, and any outstanding obligations.
Deliver the letter to the client via a traceable method (e.g., registered mail, email with read receipt).
Ensure communication is handled sensitively and professionally, adhering to all legal and policy requirements.
Assist clients with outstanding balances to complete the final payment process.
Process refunds promptly for clients with overpayments or refunds due, in accordance with company policy.
Upon full settlement of all obligations, arrange for the release of any collateral held by the company.
Document the release process and obtain client acknowledgement of receipt.
5.6.1 (Optional) For clients who have fully repaid or initiated termination, conduct a brief exit survey or follow-up call to gather feedback on their experience.
5.6.2 Analyze departure reasons and feedback to identify trends, improve services, and reduce future churn.
Cancellation Letter
Termination Letter
Final Statement of Account
Collateral Release Form
Client Feedback/Exit Survey Form
Loan Management System (LMS) records (account status, notes)
Archived Client Files (physical and/or digital)
All Finance Officers, Debt Recovery Officers, and relevant administrative staff will receive mandatory training on this SOP and related policies annually or upon significant revisions.
This SOP will be reviewed annually by the Operations and Finance Departments to ensure its continued effectiveness, compliance, and alignment with business objectives.