Multiple choice technology mainframe

What is Collections?

  1. Collections is a separate department/agency where the bad debts will be collected from the customer, if he does not pay the due amount for a certain period

  2. Collections is the process paying the bills automatically every month through the customers saving’s account

  3. Collections are a type of fee which is charged annually.

  4. Collections is an offer provided by the issuer to the customer.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Collections refers to the department or third-party agency responsible for recovering outstanding bad debts from customers who have failed to pay their bills for a prolonged period. Distractors describe direct debit, annual fees, or issuer promotions, which are unrelated to debt recovery.

Keep practicing — related questions