Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Lashanda Mackey
Reviewed date: 2025-08-27
Next review date: 2026-08-27
This SOP applies to all employees involved in account management and collections activities within Easy Terms who are responsible for handling accounts of deceased clients with outstanding debts.
The objective of this SOP is to provide a standardized, detailed approach for managing accounts of delinquent clients who are deceased. This ensures that all interactions and processes are conducted in a respectful, efficient, and compliant manner, aligning with the Policy for Management of Delinquent Deceased Clients.
This SOP applies to all employees involved in account management and collections activities within Easy Terms who are responsible for handling accounts of deceased clients with outstanding debts.
Upon receiving notification of a client's passing (e.g., from family, public record, returned mail), the collections department will initiate the verification process.
The team must verify the client's death through official documentation, such as a death certificate, obituary, or legal pronouncement.
Once verified, the client's account must be immediately flagged in the system as "Deceased - Do Not Collect" to prevent any further automated or manual collection attempts. All active collection activities must cease.
Identify the next of kin or executor of the estate from available documentation or by requesting this information from the notifying party.
Upon verifying the client's death, if applicable contact the identified next of kin or executor.
Initial contact should be made via [e.g., a compassionate letter, a sensitive phone call, or both, as appropriate].
Express sincere condolences for their loss.
Inform them of the outstanding debt on the deceased client's account.
Provide necessary information about the account status, including the balance and account number.
Explain the process for resolving the outstanding balance from the estate.
Offer assistance and a direct point of contact for further inquiries.
Avoid any language that could be perceived as demanding or insensitive.
Document all communications, including dates, times, contact persons, and a summary of the discussion, in the client's account notes.
Work with the next of kin, executor, or legal advisors to determine if the deceased client's estate is solvent enough to cover the outstanding debt. This may require requesting estate documentation (e.g., probate documents, asset statements).
If the estate is solvent, collaborate with legal advisors or estate representatives to facilitate the settlement of the debt from the deceased client's assets. This may involve:
Providing necessary documentation from Easy Terms.
Agreeing on a payment schedule or lump sum payment.
Ensuring all legal requirements for estate claims are met.
If the estate is determined to be insolvent or unable to cover the outstanding debt, the account should be closed and the outstanding balance written off as per Easy Terms's official write-off policy and procedures. This decision must be approved by [e.g., Credit and Collections Department Head or Senior Management].
Maintain accurate and detailed records of all communications, actions taken, and decisions made regarding the deceased client's account.
This includes, but is not limited to:
Date and method of death verification.
All correspondence with the next of kin, estate representatives, and any legal entities involved.
Details of any settlement agreements or write-off approvals.
Dates of account status changes (e.g., flagged as deceased, closed).
Ensure all record-keeping practices comply with relevant data protection, privacy, and confidentiality regulations (e.g., GDPR, CCPA) when handling sensitive personal and financial information.
Once the outstanding debt is fully resolved (paid, settled, or written off), the deceased client's account must be formally closed in the system.
Update the client's status in all relevant internal systems to "Closed - Deceased."
Notify all relevant internal stakeholders (e.g., collections team, finance department, legal department) and, if appropriate, the next of kin or executor of the account's closure.
All employees involved in managing delinquent deceased client accounts must strictly adhere to this SOP, the "Policy for Management of Delinquent Deceased Clients," and all relevant legal regulations and industry standards related to debt collection and the handling of deceased client accounts. Non-compliance may result in disciplinary action and legal repercussions for the company.
N/A
Credit and Collections Department will receive mandatory training on this SOP, the Debt and Recovery Policy, and relevant legal frameworks annually or upon significant revisions.
This SOP will be reviewed annually by the Operations and Finance Departments to ensure its continued effectiveness, compliance with legal requirements, and alignment with business objectives.