What can the debt tell me about your client that the collector already knows?

When debt collectors work portfolios of debt the work standards will vary dependent on the portfolio. Debt collectors know that all debt was not created equal and neither was the debts creation equal, it all has different underwriting requirements. For example a Capital One card is targeted at a lower credit worthy customer and therefore has a lower credit limit and higher interest rate verses the American Express gold card that requires great credit to qualify for.

Debt collectors know that the higher the underwriting standards the more likely that consumer is to pay or at least desire to pay. So collection agencies, direct their attentions to the more collectable portfolios and less attention to the less collectable portfolios. What this means from the consumer’s perspective is more calls and more likely litigation will be in the forecast when the debt is deemed “more collectable”. What this means from the debt relief perspective is you need to understand the same things the debt collector knows to better arrange a settlement and to predict when the best time to settle is and forecast when a lawsuit may be filed in the account flow.

Also by the same respect that Capital One debt will have different expectations from the perspective of the agency and will receive less attention. It is also very useful to understand all the debt of the consumer as it all has a bearing on your enrolled debt from the perspective of the debt collector.
Debt collectors use many data points to determine the work standards for each account and often down to the account level. By appending the file with lots of data collectors segment the portfolio based on different factors and create workflows for each segment. They segment by age of debt, balance, original creditor, age of the consumer, enrolled in debt settlement, Bankruptcy, homeowner, employed and many more data points. As debt settlement companies begin to understand these factors they too can build strategies to match each segment determined by the debt collectors.

Do you want to learn more about this subject and how you can ramp up your debt settlement processes and reduce the time to settlements? Contact Phillip W. Duff at 904-687-1687.

Phillip W. Duff

Phillip W. Duff the Founder of Lighthouse Consulting was trained in Six Sigma while working for Bombardier Capital in 2001, and is highly successful helping organizations improve their processes using the Six Sigma methodology. Mr. Duff has consulted with numerous companies over the last 10 years and has shown the ability to enact cultural change in a company. He has also initiated programs proven to drive positive revenue growth both as an employee and a consultant. His focus is to help CEO’s with a focus on growth. His knowledge of technology and background in debt collections have combined to help companies automate processes and identify which processes provide profits. Mr. Duff has also developed a unique process of initiating cultural change as a part of developing a revenue-driven atmosphere in a variety of formats. This unique philosophy and technique are unseen to date. His substantial experience in the collection industry, Six Sigma core competency and extensive industry relationships can provide you and your team a matchless perspective into your accounts receivable business or any business strategy.

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