This is an absolute no-no. The collectors should not have "ANY" access to the loan system that allows them to manipulate due dates, process payments,etc. If that is not the case, then not only would I stop this practice, but I would also instigate a detailed audit looking specifically for fraud, including mailing confirmation letters to customers that recently had their payment due dates bumped. I.E., collector receives cash, collector bumps due date, collector skips after 100s of payments, angry customers come out of the woodwork as they approach loan pay-off. And don't say we don't have to worry about that, I've seen it happen too many times at every size bank. I would rank this as a serious breakdown in internal controls. There has to be some sort of separation of duties. Additionally, you need to analyze if you now have loans that are not classified according to regulatory guidance due to the fact that the past due dates have been manipulated.
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