Generally the clients of financial service providers either test controls, exploit weaknesses in their system or test the institution’s capacity to live up to its promises. This note discusses some of these tactics used by the clients individually or in a group to avoid payments and possible solutions to the financial service providers. Some of the games played by the clients are mobilising ghost clients, involving family members, servicing loans of a drop out to get higher loan amounts of next cycle, prepayments, loans from other MFIs on the same business in the names of their friends or relatives, false guarantors amongst many others discussed in this note. The possible solutions, as the note suggests, range from immediate follow up to setting up internal audit team and loan portfolio audit.

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