Importance The banking business is going through hard times: new regulation rules, capital adequacy requirements, growing competition on the part of non-financial organizations and an enormous change in technology have an impact on successful development of banks. In these circumstances, the analysis and management of non-performing liabilities assume special relevance and importance. Objectives The article aims to provide a conceptual study of the banking practice evolution related to the methods of work with loan debts, development of methodology defining the content of the model of individuals' loan debt collection in a retail bank. The article discusses the approaches to strategy and tactics of bad debts recovering on retail loans. Methods We applied the scientific knowledge methods, such as the abstract-logical, structural, functional and graphical methods and theoretical modeling as a methodological basis of the research. In the paper we used the findings of the works of the Russian researchers in the field of credit risk management. Results We have demonstrated and revealed the basic stages of debt collection scoring and defined the term "debt collection strategy". Our consideration of global and Russian experience of work with debt collection tools allowed identifying the main types of collection scoring, i.e. Soft Collection, Hard Collection and Legal Collection. We have identified the basic sub-stages for the Soft Collection stage, taking into account the efficiency and cost of collection. Conclusions and Relevance We came to a conclusion that the retail portfolio segmentation and selecting a strategy for each segment provide banks with specific benefits in the form of increased efficiency and reduced cost of each individual loan collection.
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