Falling behind on a cooperative loan can feel especially stressful because the lender is not just a bank or lending company — it is often an organization where you are also a member, depositor, employee, co-maker, or community participant. In the Philippines, restructuring a cooperative loan usually means formally changing the loan terms so the member-borrower can pay in a realistic way while the cooperative protects its funds and other members’ money. This guide explains when restructuring is allowed, what documents to prepare, how the process usually works, what rights you have, and what to watch out for before signing a new promissory note or payment agreement.

What Loan Restructuring Means in a Philippine Cooperative

A cooperative loan restructuring is a formal modification of the original loan terms. Under the Cooperative Development Authority’s Memorandum Circular No. 2024-07 on cooperatives engaged in credit services, restructuring may change items such as:

the principal due;
maturity date;
monthly amortization;
interest rate;
penalties or other charges;
collateral;
payment schedule; or
other loan conditions.

The purpose is not simply to “delay collection.” The idea is to lessen the borrower’s financial difficulty while helping the cooperative collect a realizable amount within a reasonable period.

In practice, restructuring may look like any of the following:

Option	What it usually does	Common use
Re-amortization	Spreads the unpaid balance over a new schedule	Borrower can pay, but needs lower monthly payments
Extension	Moves the maturity date	Temporary income disruption, delayed remittance, short-term hardship
Renewal	Replaces or continues the loan under new terms	Existing loan is partly paid and the borrower remains creditworthy
Penalty waiver or reduction	Removes or reduces accumulated penalties	Borrower can pay principal and interest but penalties made the account unmanageable
Interest rate adjustment	Changes the rate prospectively	Cooperative policy allows lower rate for distressed accounts
Collateral substitution	Replaces or adds collateral	Existing collateral is insufficient or no longer practical
Dacion en pago	Property is accepted as payment	Borrower cannot pay in cash and cooperative agrees to accept property

Dacion en pago, also called dation in payment, is a Civil Code concept where property is transferred to the creditor to satisfy a debt. Article 1245 of the Civil Code of the Philippines provides that dation in payment is governed by the law on sales.

Is Loan Restructuring a Right?

Usually, no. A member-borrower may request restructuring, but the cooperative is not automatically required to approve it.

A cooperative is handling funds contributed by members. Its board, credit committee, and management must consider whether the proposal is fair to the borrower, fair to the cooperative, and fair to other members whose savings and share capital fund the lending operations.

Under CDA MC 2024-07, loans receivable may be restructured only under the cooperative’s restructuring guidelines approved by the Board of Directors. The cooperative must consider matters such as:

the basis for approval;
the borrower’s capacity to pay;
the viability of the borrower’s business, if the loan is business-related; and
the nature and extent of protection for the cooperative’s loan exposure.

A restructuring request is strongest when it is specific, documented, and realistic. A vague request like “please lower my payment” is weaker than a written proposal showing your income, expenses, reason for default, and exact amount you can pay monthly.

Legal Basis for Cooperative Loan Restructuring in the Philippines

Republic Act No. 9520: Philippine Cooperative Code of 2008

The main law governing cooperatives is Republic Act No. 9520, the Philippine Cooperative Code of 2008. It recognizes different types of cooperatives, including credit cooperatives and multipurpose cooperatives with credit operations.

A credit cooperative is one that promotes and undertakes savings and lending services among its members. It pools funds to provide financial assistance to members for productive or provident purposes.

Important provisions of RA 9520 include:

Article 23 — defines credit cooperatives and other types of cooperatives.
Article 52 — requires cooperatives to keep books and key records accessible to members during reasonable office hours.
Article 57 — gives the cooperative a first lien over property acquired through the proceeds of a cooperative loan, subject to the article’s conditions.
Articles 71 to 79 — govern capital, share capital, capital build-up, and related cooperative funds.
Article 137 — requires covered cooperative disputes to be settled, as far as practicable, through conciliation or mediation, then voluntary arbitration if settlement fails.

CDA MC 2024-07: Credit Operations Rules for Cooperatives

CDA MC 2024-07 is especially important because it deals directly with cooperatives engaged in credit services, except cooperative banks.

It covers practical credit matters such as:

written loan policies;
credit evaluation;
loan agreements;
truth-in-lending disclosures;
interest and charges;
secured and unsecured loans;
past due accounts;
restructuring;
extension and renewal of loans;
write-off;
dacion en pago; and
financial consumer protection compliance.

For borrowers, the most important point is this: a restructuring must be formalized. Verbal promises, text messages, or informal agreements with a collector are not enough if the official loan records still show the original amortization and penalties.

Civil Code Rules on Contracts, Interest, Penalties, and Novation

A cooperative loan is also a contract. Under Article 1159 of the Civil Code, obligations arising from contracts have the force of law between the parties and must be complied with in good faith.

Other useful Civil Code provisions include:

Article 1306 — parties may establish contract terms as long as they are not contrary to law, morals, good customs, public order, or public policy.
Article 1956 — no interest is due unless it has been expressly stipulated in writing.
Article 1229 — courts may reduce penalties when the principal obligation has been partly or irregularly complied with, or when the penalty is iniquitous or unconscionable.
Articles 1291 and 1292 — novation, or the substitution/modification of an obligation, must be clear; it is not presumed.

This matters because restructuring does not always erase the old loan. Unless the written agreement clearly says so, the cooperative may treat the restructuring as a modified payment arrangement, not a complete release of prior obligations, co-makers, collateral, or unpaid charges.

Truth in Lending Act and Financial Consumer Protection Act

The Truth in Lending Act, Republic Act No. 3765, requires disclosure of the true cost of credit. CDA MC 2024-07 specifically requires cooperatives to comply with CDA’s truth-in-lending rules and make the true and effective cost of borrowing part of every loan contract.

The Financial Products and Services Consumer Protection Act, Republic Act No. 11765, also matters because it covers financial products and services, including credit. The CDA implements this law for cooperatives offering financial products or services, except cooperative banks and insurance cooperatives, which fall under other regulators.

Under the CDA’s MC 2023-14 implementing rules for RA 11765, financial consumers have rights to fair treatment, disclosure and transparency, protection of assets against fraud and misuse, data privacy, and timely handling of complaints.

When a Cooperative Loan Can Usually Be Restructured

Every cooperative has its own credit policy, but restructuring is commonly considered when:

The borrower’s hardship is real and documented.
The borrower still has capacity to pay under revised terms.
The account can be rehabilitated instead of immediately collected, foreclosed, or litigated.
The borrower is willing to update collateral or co-maker documents if required.
The proposed payment plan is better for the cooperative than forced collection.
The borrower is not abusing the process to avoid payment.

Common acceptable reasons include:

job loss or reduced work hours;
delayed OFW remittances;
business closure or low sales;
illness, hospitalization, disability, or death in the family;
calamity damage;
separation from employment;
crop failure or livestock loss for agricultural borrowers;
delayed government receivables or project collections; or
temporary family emergency.

CDA MC 2024-07 also states that loans receivable may be restructured only upon full payment of interest due or under exceptional conditions as defined in the cooperative’s loan policies. It also states that loans can be restructured only once. This makes it important to propose terms you can actually sustain.

Step-by-Step Process to Restructure a Cooperative Loan

1. Get your complete statement of account and loan documents

Before proposing anything, ask for a written statement showing:

original loan amount;
outstanding principal;
accrued interest;
penalties;
service charges or collection charges;
insurance charges;
payments already made;
application of each payment;
due dates missed;
share capital or deposit hold-out, if any;
collateral status; and
total amount required to update, restructure, or fully settle the account.

Also request copies of:

promissory note;
disclosure statement;
amortization schedule;
loan application;
co-maker, surety, or guaranty agreement;
deed of assignment or hold-out agreement;
real estate mortgage, chattel mortgage, or security agreement;
board-approved restructuring policy, if available to members; and
notices of default or demand letters.

A member’s right to inspect cooperative records is not unlimited, but RA 9520 requires cooperatives to keep key documents accessible to members, and RA 11765 supports transparency in financial products and services.

2. Check whether the balance is correct

Do not focus only on the total. Review how the cooperative computed it.

Check these common problem areas:

Were payments applied first to penalties instead of principal?
Were penalties compounded?
Was interest charged even after the account was treated as past due?
Were insurance or service charges disclosed?
Was the interest rate in writing?
Was the amortization based on diminishing balance?
Was there a COVID-era relief, calamity relief, or board-approved moratorium that should have applied?
Were salary deductions or deposit set-offs properly credited?

Under CDA MC 2024-07, interest on cooperative loans should be based on diminishing balance, and cooperatives must comply with truth-in-lending requirements.

3. Prepare a realistic payment proposal

A restructuring proposal should show the cooperative that you are serious and that the new schedule can work.

Include:

reason for default;
current monthly income;
necessary household or business expenses;
other debts;
amount you can pay monthly;
date you can start paying;
lump sum you can pay now, if any;
requested waiver or reduction of penalties;
requested term, such as 12, 24, or 36 months;
proposed collateral or co-maker update, if needed; and
supporting documents.

A practical proposal might say:

“I request restructuring of my past due loan. I can pay ₱5,000 on approval and ₱4,000 every 30th day of the month for 24 months. I request waiver of penalties and re-amortization of the remaining principal and interest because my income was reduced from March to July due to medical leave. Attached are my medical certificate, payslips, and proposed cash flow.”

The cooperative may reject the exact terms, but a specific proposal gives the credit committee something concrete to evaluate.

4. Submit a written request to the cooperative

Address the request to the manager, credit committee, or board, depending on the cooperative’s policy.

Your request should include:

your full name and membership number;
loan account number;
contact details;
reason for default;
proposed restructuring terms;
request for updated statement of account;
request to suspend penalties or collection escalation while the request is pending, if justified;
list of attached documents; and
your signature.

Keep a receiving copy, email proof, or screenshot of submission. If you submit through a branch, ask for a stamped copy.

5. Attend counseling or financial literacy session if required

CDA MC 2024-07 states that, prior to restructuring or release of the loan, counseling to the member-borrower shall be administered by the cooperative.

In real practice, this may be:

a one-on-one meeting with the credit officer;
a session with the credit committee;
a financial literacy or debt management briefing;
a review of your household cash flow;
a discussion with your co-maker; or
a meeting about collateral.

Do not treat this as a mere formality. What you say in this stage often affects whether the cooperative sees the account as recoverable.

6. Wait for credit evaluation and approval

The cooperative will usually review:

your payment history;
character and membership standing;
capacity to pay;
available collateral;
co-maker strength;
salary or business income;
deposits and share capital;
previous restructuring, if any;
loan purpose;
reason for default; and
whether the proposed terms comply with board policy.

For small unsecured loans, this may take one to three weeks. For larger loans, DOSRI accounts, real estate collateral, or board-level approvals, it can take a month or longer.

DOSRI means Directors, Officers, Staff, and Related Interests. CDA rules require loans to these persons to be handled carefully. Restructuring of loans to directors or officers must be on terms not more favorable than those offered to other member-borrowers.

7. Review the restructuring agreement before signing

Before signing, read the revised documents carefully.

The agreement should clearly state:

restructured principal;
interest rate;
whether penalties are waived, reduced, capitalized, or preserved;
payment schedule;
due dates;
grace period, if any;
default clause;
effect of one missed payment;
whether old collateral remains;
whether new collateral is added;
whether co-makers remain liable;
insurance or loan protection charges;
prepayment rules;
total amount payable;
whether the agreement is a novation or merely a restructuring; and
whether court, arbitration, or foreclosure remedies remain available.

Be careful with phrases such as:

“all previous penalties are capitalized into principal”;
“borrower admits the correctness of all amounts”;
“co-maker remains jointly and severally liable”;
“any missed installment makes the entire balance due”;
“borrower waives all defenses”;
“borrower authorizes automatic deduction from deposits, salary, or benefits”; or
“borrower waives confidentiality of deposit information.”

Some clauses may be standard, but you should understand their effect before signing.

8. Sign the required documents and get copies

A complete restructuring package may include:

restructuring agreement;
new or amended promissory note;
disclosure statement;
revised amortization schedule;
board or credit committee approval;
deed of assignment of deposits or benefits;
co-maker conformity;
spouse consent, if conjugal or community property is affected;
real estate mortgage amendment;
chattel mortgage amendment;
personal property security agreement;
special power of attorney; and
notarized affidavits or undertakings.

Always get copies of everything you sign. Under CDA financial consumer protection rules, cooperatives must provide financial consumers copies of signed documents and proof of transactions.

9. Pay exactly under the new schedule

After approval, pay on time and keep proof.

Keep:

official receipts;
deposit slips;
screenshots of online transfers;
updated ledgers;
acknowledgment emails; and
text confirmations, if payments are coordinated by phone.

Ask for an updated statement after the first few payments to confirm that the account is being applied according to the restructured schedule, not the old schedule.

Documents Usually Needed for Cooperative Loan Restructuring

Document	Why it matters
Written restructuring request	Starts the formal process and creates a record
Valid government ID	Confirms identity
Membership number or passbook	Links request to member account
Original promissory note and disclosure statement	Shows the original legal terms
Updated statement of account	Shows principal, interest, penalties, and total balance
Proof of income	Shows capacity to pay
Payslips, COE, ITR, remittance records, or bank statements	Supports employment or OFW income
Business permit, sales records, invoices, or financial statement	Supports business income
Medical certificate, hospital bills, termination letter, calamity report, or death certificate	Explains hardship
Proposed payment plan	Helps the credit committee evaluate feasibility
Collateral documents	Needed if the loan is secured
Co-maker or guarantor conformity	Often required if liability continues
Spouse consent	Important when conjugal or community property is affected
Special Power of Attorney	Needed if signing through a representative

Special Rules for Collateral, Spouses, Co-Makers, and Foreigners

If the loan is secured by real property

If land, a house, or a condominium is collateral, the cooperative will usually require updated title documents, tax declarations, tax clearances, appraisal, and mortgage documents.

For married borrowers, Articles 96 and 124 of the Family Code are often relevant because disposition or encumbrance of community or conjugal property generally requires the consent of both spouses or proper court authority. In practice, cooperatives usually require the spouse to sign if the collateral may be conjugal, community, or family property.

If a real estate mortgage has already been registered, restructuring does not automatically cancel it. The mortgage may remain until the loan is paid or until the cooperative executes a cancellation or release.

If the loan is secured by a vehicle or movable property

For vehicles, equipment, inventory, receivables, deposit accounts, or other personal property, the cooperative may use a chattel mortgage or a security agreement. The Personal Property Security Act, Republic Act No. 11057, governs many modern security interests over personal property.

Expect the cooperative to ask for:

vehicle OR/CR;
deed of sale;
insurance policy;
appraisal;
photos or inspection report;
proof of ownership;
security agreement; and
registration or annotation documents.

If you are a co-maker, guarantor, or surety

A co-maker is often treated as directly liable, especially if the promissory note says the borrowers are jointly and severally liable. That means the cooperative may collect the full amount from any solidary debtor, subject to the wording of the documents.

A guarantor or surety may have different rights under the Civil Code. A surety is usually more directly liable than a guarantor. In cooperative practice, however, many loan forms use broad language making co-makers, sureties, or guarantors liable for the restructured obligation if they sign the new documents.

A co-maker should not assume that restructuring releases them. Release should be written.

If you are an OFW or living abroad

Many restructuring requests come from OFWs who fell behind because of delayed contracts, repatriation, illness, or family emergencies.

If you are abroad, the cooperative may require:

Special Power of Attorney for a representative in the Philippines;
passport copy;
employment contract;
proof of remittances;
foreign payslips;
residence card or work permit;
consular notarization or apostille, depending on the document and country; and
video verification or online interview.

The Philippines is a party to the Apostille Convention. For documents executed abroad and intended for use in the Philippines, the required authentication depends on the issuing country and document type. The DFA’s Apostille FAQs are a useful official reference.

If you are a foreigner dealing with a Philippine cooperative

Foreigners may deal with cooperatives depending on the cooperative’s bylaws, field of membership, membership category, and internal credit policy. Some cooperatives lend only to regular members. Others allow associate members or employees.

Common additional requirements include:

passport;
ACR I-Card, if applicable;
Philippine address;
local co-maker;
proof of local income or foreign income;
tax identification number, if required;
immigration status documents; and
notarized or apostilled foreign documents.

Foreigners should also remember that the Philippine Constitution generally restricts foreign ownership of land. If real property collateral is involved, the cooperative will examine ownership, spouse consent, and title restrictions carefully.

What Fees and Costs May Be Involved?

There is no single fixed fee for all cooperative loan restructuring in the Philippines. Costs depend on the cooperative’s bylaws, credit policy, loan type, and collateral.

Cost	When it appears
Processing fee	Some cooperatives charge this for restructuring evaluation
Notarial fee	For promissory notes, restructuring agreements, SPA, mortgage documents
Appraisal fee	For real estate, vehicles, equipment, or other collateral
Insurance or loan protection plan	Common for cooperative credit operations
Registration or annotation fees	For mortgages, liens, or security interests
Documentary stamp tax	May apply to certain loan or mortgage documents
Attorney’s fees or collection costs	Usually if the account reached demand, litigation, or foreclosure
Penalties	May be reduced, waived, preserved, or capitalized depending on approval

Ask for the cost breakdown in writing before signing. Under financial consumer protection and truth-in-lending rules, the borrower should understand the full price or cost, including interest, fees, charges, and penalties.

Common Pitfalls When Restructuring Cooperative Loans

Signing a new promissory note without checking the computation

Some borrowers focus only on the lower monthly payment. Later, they realize penalties were added to principal, interest was recomputed, or the total payable became much higher.

Always compare:

old outstanding principal;
old accrued interest;
old penalties;
waived amounts;
new principal;
new interest rate;
new total payable; and
new maturity date.

Thinking “write-off” means the loan is forgiven

A write-off is usually an accounting action by the cooperative. CDA MC 2024-07 states that writing off accounts does not diminish the borrower’s liability and the cooperative may continue recovery efforts. A true condonation or forgiveness of debt should be clearly approved and documented.

Relying on verbal promises from collectors

A collector may say, “Just pay this amount and your account will be okay.” Unless the cooperative issues an official receipt, updated ledger, or approved restructuring document, the official account may remain past due.

Not including the co-maker in the restructuring

If the original loan had a co-maker, the cooperative may require the co-maker to sign the restructured documents. If the co-maker does not sign, disputes may arise about whether the co-maker remains liable for the modified obligation.

Missing the first payment after approval

Many restructuring agreements have an acceleration clause. This means one missed installment may make the entire restructured balance immediately due. If your income is uncertain, do not agree to an amount that leaves no room for emergencies.

Ignoring notices of default, foreclosure, or small claims

A restructuring request does not automatically stop collection, foreclosure, arbitration, or court action unless the cooperative agrees in writing. If you receive a demand letter, notice of foreclosure, summons, or small claims notice, track the deadlines carefully.

What If the Cooperative Refuses to Restructure?

If the cooperative denies the request, you still have several possible paths.

1. Ask for written reasons and a revised payoff amount

A denial may be based on policy, prior restructuring, insufficient income, weak collateral, or repeated default. Ask for the reason and the amount required to update or settle the account.

2. Submit a better proposal

A stronger second proposal may include:

partial lump-sum payment;
shorter term;
additional collateral;
replacement co-maker;
salary deduction authorization;
proof of new employment;
proof of business recovery; or
payment of interest due first.

3. Use the cooperative’s conciliation and mediation mechanism

For disputes covered by RA 9520 and the cooperative’s bylaws, Article 137 requires amicable settlement as far as practicable through the cooperative’s conciliation or mediation mechanism.

If settlement fails, the matter may proceed to voluntary arbitration, subject to the required certifications.

The CDA’s MC 2013-21 on conciliation-mediation before the CDA states that CDA conciliation-mediation proceedings should be completed within three months from request, and a Certificate of Non-Resolution may be issued when the process fails.

4. Prepare for voluntary arbitration, small claims, collection, or foreclosure

If the dispute is not resolved, the next step depends on the loan documents, cooperative status, parties, and relief sought.

Possible routes include:

Situation	Possible forum or process
Intra-cooperative dispute covered by RA 9520	Cooperative conciliation/mediation, CDA conciliation, then voluntary arbitration
Pure money claim within small claims threshold	First-level court small claims, depending on jurisdiction and dispute type
Real estate mortgage default	Extrajudicial or judicial foreclosure, depending on mortgage terms
Chattel or movable collateral default	Enforcement under mortgage/security documents and applicable law
Financial consumer complaint	Cooperative’s consumer assistance process and possibly CDA channels

The Supreme Court has increased the small claims threshold to ₱1,000,000, exclusive of interest and costs, under the rules on expedited procedures in first-level courts. The Supreme Court’s official discussion is available here: SC Issues Rules on Expedited Procedures in the First Level Courts.

Practical Timeline for Cooperative Loan Restructuring

Stage	Typical timeline
Request for statement of account	Same day to 1 week
Preparation of documents	2 days to 2 weeks
Initial credit officer review	1 to 2 weeks
Credit committee or management evaluation	1 to 4 weeks
Board approval, if required	Depends on board meeting schedule
Signing and notarization	Same day to 1 week
Collateral registration or annotation	1 to 4 weeks or longer if title issues exist
CDA conciliation-mediation, if needed	Up to 3 months from request
Certificate of Non-Resolution after failed CDA mediation	Within 5 calendar days from termination or failure event under CDA rules
Small claims or court process	Varies by court docket and service of summons

The biggest bottlenecks are usually incomplete documents, unavailable co-makers, spouse consent issues, title defects, board meeting schedules, and disputes over the correct balance.

Frequently Asked Questions

Can I force my cooperative to restructure my loan?

Generally, no. You may request restructuring, but approval depends on the cooperative’s board-approved credit and restructuring policies, your capacity to pay, payment history, collateral, and the cooperative’s risk assessment.

How many times can a cooperative loan be restructured?

Under CDA MC 2024-07, loans can be restructured only once. Some special circumstances may be addressed by cooperative policy or later CDA issuances, but borrowers should treat restructuring as a one-time opportunity and propose terms they can realistically maintain.

Can the cooperative keep charging interest and penalties while my request is pending?

It may continue applying the contract and its credit policy unless it approves a standstill, moratorium, waiver, or restructuring. Ask in writing whether penalties or collection action will be suspended while your request is under review.

Can the cooperative deduct my deposits, salary, share capital, or patronage refund?

It depends on the loan agreement, bylaws, salary deduction authority, hold-out agreement, deed of assignment, and cooperative policy. Ask for the written basis and computation. A borrower should also check whether the deducted amounts were properly credited to the account.

Is interest valid if it was not written in the loan agreement?

Under Article 1956 of the Civil Code, no interest is due unless it has been expressly stipulated in writing. If the interest rate, penalties, or charges were unclear or not disclosed, ask for the promissory note, disclosure statement, and legal basis for the computation.

What happens to my co-maker if my loan is restructured?

The co-maker may remain liable if the documents say so, especially if they sign the restructuring agreement or the original agreement covers renewals, extensions, or modifications. A co-maker is released only if the cooperative clearly agrees in writing.

Can penalties be waived?

Yes, if the cooperative approves it under its policies. Penalty waiver is common when the borrower can pay the principal and interest but accumulated penalties make settlement impossible. The waiver should be written and reflected in the new computation.

Is loan restructuring the same as loan condonation?

No. Restructuring changes payment terms. Condonation forgives part or all of the debt. A write-off is also different; it is usually an accounting treatment and does not automatically erase the borrower’s liability.

What if I am abroad and cannot sign personally?

You may need a Special Power of Attorney authorizing someone in the Philippines to sign or process documents. Depending on where the document is executed, the cooperative may require consular notarization, apostille, or other authentication.

What if the cooperative refuses to give me documents?

Ask again in writing and identify the specific documents: statement of account, promissory note, disclosure statement, amortization schedule, payment ledger, and restructuring policy applicable to your account. If the dispute involves financial consumer rights or intra-cooperative rights, the cooperative’s internal complaint process, conciliation-mediation mechanism, and CDA processes may become relevant.

Key Takeaways

Cooperative loan restructuring in the Philippines is a formal written modification of loan terms, not a mere verbal promise to pay later.
Approval is not automatic; the cooperative must evaluate your capacity to pay, the basis for restructuring, and protection of cooperative funds.
CDA MC 2024-07 is the key current rule for cooperatives engaged in credit services, except cooperative banks.
Ask for a complete statement of account before signing anything.
Check whether penalties, interest, insurance, collection costs, and prior payments were computed correctly.
A restructured loan should have a new written payment schedule, disclosure statement, and clear treatment of penalties, collateral, and co-makers.
Co-makers, guarantors, spouses, OFWs, and foreigners may need additional documents or written consent.
Write-off does not automatically cancel the debt.
If the restructuring dispute cannot be resolved internally, RA 9520 provides for cooperative conciliation, mediation, and voluntary arbitration for covered disputes.
The best restructuring proposal is specific, documented, affordable, and submitted before the account escalates to foreclosure, arbitration, or court collection.