Litigation Management System 

Litigation Management System facilitates the efficient administration and monitoring of collections litigations involved in recovering the outstanding debts. The LMS for debt collections caters to the needs of legal firms, collections and legal teams of banks and other financial institutions to minimize bad debt write-offs, fast-track recoveries, and reduce the cost of collections.

Case management is instrumental for lenders in India as it ensures effective debt recovery, compliance with regulations, organized data management, improved customer service, risk mitigation, and cost reduction.

A robust loan collections Litigation Management System streamlines case handling by storing and reminding of crucial dates, centralizes tracking for easy access to hearing dates and case history, and manages expenses, preventing budgetary confusion. It also enhances communication and collaboration between legal and collections teams, ensuring everyone remains well-informed and enabling swift actions, such as issuing notices, customizing pre and post litigation workflows.

The initial step is to dispatch a legal notice, which can be either physical or digital, to the borrower. This notice requests the borrower to make the payment within fifteen days from the date of receipt. Digital notices can be monitored through click and open rates, while physical notices can be tracked via integration with Indian postal services. If the borrower fails to make the payment within the specified period, a case can be initiated under Section 138 of the Negotiable Instruments Act or Section 25 of the Payment and Settlement Systems Act. Debt recovery through court proceedings is also an option, although it is time-consuming and resource-intensive. Outside court settlements may involve tools such as Online Dispute Resolution with Debt Arbitration and Mediation.