Do you have a defined strategy for accounts that are been debt settlement programs? If you don’t, you may leave money on the table. Debt settlement companies are here to stay and debt collection agencies need to work together with the debt settlement companies for both companies benefit and the benefit of the consumer.
As you begin to work your portfolio you will find accounts that have been working with a debt settlement company via your interaction with the consumer, a power of attorney from the debt settlement company or any direct contact with that debt settlement company. The question then becomes do you have a defined strategy that is in process to work these accounts or is that strategy being defined by your collection staff.
In many collection operations there are very smart Bill collectors who have aligned themselves with negotiation agents at the various debt settlement companies in order to collect more money each month. That’s smart bill collector is creating the strategy for your business behind your back. In addition, you may be paying large commissions on those payments. That smart bill collector is getting an email from the debt settlement company with a unsecure spreadsheet consumer information which he is using to determine accounts that match within your system. Once the Smart collector as a debt has identified the matches he negotiates with the debt settlement company for payment. All this without the knowledge of the manager in most cases.
In contrast the companies that have a defined strategy for all debt settlement accounts are likely paying a much smaller commissions to the staff in charge of those accounts and it is likely involved in a much more compliant process. The debt settlement companies are not as concerned about the security of the consumer data as the collection agents need to be. This is a strong reason for your company to have a defined strategy as opposed to hey smart collector strategy.
So the first thing you need to do to increase your profits from the debt settlement accounts is to create a defined strategy for all accounts identified as in a debt settlement program. The second step to increase your profits from this segment of your portfolio is to assign a low or no commission employee to work the accounts. The last step is to make sure you are working with as many of the aggregators as possible.
There are several companies that are aggregating debt settlement company data in order to make it easier to scrub. It is advantageous to include these aggregators in your defined strategy.
Lighthouse Consulting has been building these strategies for many years and can help you to create the most profitable debt settlement strategy available.