The Smart Campaign applauds company’s policy on respectful practices in loan recovery
Washington, DC, March 18, 2011 — The Smart Campaign, a global initiative to incorporate strong client protection principles across the microfinance industry, today recognized Swadhaar FinServe Pvt. Ltd. (SFPL) for its outstanding efforts to ensure that clients are treated with dignity, even when they fail to meet their contractual commitments.
“The Smart Campaign asked microfinance institutions (MFIs) to send in examples of their debt collections guidelines,” said Smart Campaign Tool Development Specialist Leah Wardle. “SFPL won our Call for Tools because their policies and procedures for collections are a good example of how MFIs can provide staff with clear expectations for dignified treatment of clients during collections. From their general code of conduct for collections, to their specifics on ethical loan recovery procedures, SFPL’s policies clearly embody elements of our Client Protection Principles.”
The Smart Campaign’s Client Protection Principles state that debt collection practices must not be abusive or coercive. In practice, that means acceptable and unacceptable debt collection practices must be clearly spelled out through guidelines and manuals.
SFPL’s policies for collections are “built around dignity and respect to its clients” and outline acceptable and unacceptable behavior for any person authorized to represent SFPL in collections. The procedures provide clear, detailed steps and timeframes for collections and require that collection agents refrain from resorting to intimidation or harassment of any kind in their debt collection efforts. SFPL’s “Code of Conduct for Collections and Collections Practices for Group Loans” is one of many tools available on the Smart Campaign’s website, www.smartcampaign.org.
“Through our regular Call for Tools, the Smart Campaign is compiling the best resources on client protection available in the microfinance industry, and making them available to organizations worldwide through online toolkits,” said Smart Campaign Director Isabelle Barrès.
In late March, the Smart Campaign will launch its fifth industry-wide Call for Tools, which will seek the best available documents related to the Client Protection Principle dealing with ethical staff behavior.
For more information, please contact Smart Campaign Communications Manager Charlotte Connors at (202) 393-5113 ext 1667 or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ,
About the Smart Campaign
The Smart Campaign is a global campaign consisting of microfinance leaders from around the world who believe that protecting clients is not only the right thing to do but the smart thing to do. To date, over 1,700 microfinance and other financial institutions, microfinance support organizations, investors, donors, and individual industry professionals have pledged adherence to the Smart Campaign’s core Client Protection Principles. By providing microfinance institutions with the tools and resources they need to deliver transparent, respectful, and prudent financial services to all clients, the Smart Campaign is helping the industry maintain a dual focus on improving clients’ lives while attaining financial sustainability. The Campaign is headquartered at the Center for Financial Inclusion (CFI) at ACCION International and is governed by a Steering Committee representing a broad cross-section of the industry.
About Swadhaar FinServe Pvt. Ltd.
Swadhaar FinServe Pvt.Ltd. (SFPL) is a non-banking finance company based in Mumbai. SFPL provides financial services to the economically active urban poor. In Hindi, the word “Swadhaar” means self-support. This reflects the company’s mission to make available regular, reliable, and efficient financial services to the economically vulnerable, enabling them to become self-reliant and meet their aspirations for a better and more secure future.
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