How the DPD dunning ladder works
Collections in Ustawi runs off a rule, not an officer's mood. The dunning ladder escalates a delinquent loan through a fixed sequence of actions — each rung triggered by a days-past-due (DPD) threshold — so the same lateness is always handled the same way, on every loan, in every branch.
What DPD is
DPD is the number of days a repayment has been overdue, measured against the loan's actual due date. It is what drives the ladder: as a loan's DPD climbs past each configured threshold, the next, firmer action becomes due. Because the trigger is a number and not a judgement call, a borrower three days late is treated the same whether their officer is diligent or busy.
The escalation sequence
The default ladder moves from the lightest touch to the most serious, giving the borrower every chance to cure the arrears before recovery becomes formal.
| Stage | Typical trigger | Action |
|---|---|---|
| SMS | 1+ days past due | An automated reminder that a payment is overdue. |
| Call | 7+ days past due | A follow-up call to the borrower to understand the delay. |
| Visit | 15+ days past due | A field visit is added to a collection agent's worklist. |
| Notice | 30+ days past due | A formal written notice is issued. |
| Legal | 60+ days past due | The case escalates toward legal or recovery action. |
The trigger points are configurable per product and branch — see “Configuring your action-ladder thresholds.”
Why a ladder rather than officer discretion
Consistent escalation protects both sides. The institution gets predictable, auditable follow-up that feeds PAR30/PAR90 reporting downstream; the borrower is never chased harder or softer than the rules allow. A recovery notice, in particular, is a real regulatory step — it is not something the ladder skips, because repossession cannot proceed without it.