DCA programme lifecycle
Summary. This is the credit provider journey for a contingent DCA programme: strategy, market engagement, due diligence, contract, integration, pilot, steady state, periodic review, and exit. Use it for RFP structure, integration planning, and gap reviews. It sits alongside the six governance layers and the recoveries decision model.
In practice, phases overlap. Due diligence often continues while contract drafts iterate; integration design starts before the ink is dry; pilots are sometimes compressed under deadline pressure and skip the learning they exist to produce. Contract signed does not mean operating model ready: many programmes fail because reconciliation, governance cadence, and traceability were designed late, after volume was already live.
Controls and COF. Integration and pilot phases should prove not only files moving but controls working: recall stop work, dual-state breaks, bureau alignment rules. A COF track, where used, belongs in the technical blueprint alongside vendor delivery, not as a slide deck after go-live.
Phases
| Phase | Intent | Typical outputs |
|---|---|---|
| 1. Strategy and scope | Which debts, segments, path (contingent vs internal vs sale). | Policy positions, eligibility, OKR themes. |
| 2. Market engagement | RFI/RFP, panel shortlist, commercial comparison. | Scored proposals, references. |
| 3. Due diligence | Financial strength, conduct, subprocessors, data residency, security. | DD report, risk sign-off, issues. |
| 4. Contract and SLA | Legal agreement, Layer 2 SLAs, fees, authority, reporting schema, exit. | Executed contract, handbook extracts. |
| 5. Integration | Files, placement and delta, payment and remittance, dual-state mapping. | Specs, UAT, cutover plan. |
| 6. Pilot | Limited volume, parallel run, hypercare. | Pilot report, go/no-go. |
| 7. Steady state | Layer 3 packs, issues, cadence, reviews. | Monthly trail, exceptions, scorecards. |
| 8. Review and refresh | Annual review, fees, incentives, panel policy. | Amendments or exit trigger. |
| 9. Exit or transition | Recall, final feeds, no stray contact, handover. | Closure, lessons learned. |
Roles (illustrative)
| Theme | CP (typical) | DCA (typical) |
|---|---|---|
| Strategy | Portfolio owner, risk, finance | Commercial, solutions |
| RFP / selection | Procurement, legal, collections | Bid team |
| Due diligence | Risk, IT security | Disclosure, subprocessors |
| Integration | IT, data, collections ops | Implementation |
| Run-state | Collections, complaints, QA | Operations, MI, AM |
| Governance | Second line, conduct, audit | Contract governance contact |
Common failure modes
- Interfaces in the contract but not built with owners and cutover dates.
- Recovery rate defined differently in RFP, contract, and monthly pack.
- Offshore or nested vendors not cleared for data residency before go-live.
- Pilot skipped under date pressure.
- Exit and recall SLAs never tested until a crisis.
Before first production placement
- Authoritative segment and placement rules (including exclusions).
- File specifications and reconciliation (CP SoT vs DCA-reported state).
- Conduct playbook: hardship, complaints, disclosure, vulnerability.
- Escalation tree and recall authority (including DCA recall requests).
- Monthly pack template and submission SLA.