Debt collection and purchase
Persuading debtors to meet their financial obligations, especially those who have gone months if not years without paying, can be difficult and expensive. The key to success, whether the debt is owned or collected on behalf of someone else, is a clear understanding of who will or won't pay. It's an essential ingredient that determines the value of the debt portfolio, how you manage your collections resource and ultimately the profit you make.
It's no wonder, therefore, that debt collection agencies and debt purchasers spend a great deal of time, resource and money on building propensity models that attempt to accurately predict payment behaviour. Get it wrong and you'll be throwing good money after bad. Fortunately, Fraudscreen's Cipher coding solution has been designed specifically to predict payment intent and is available as a stand-alone application or as an enhancement to existing models.
Identify the golden nuggets
No matter how old or poor quality the debts in a recoveries portfolio, there are always collectable debts hidden away like gold nuggets. It's a question of finding them - especially important when times are tough. Using more and better information, and applying that knowledge in an organised way really can help pull out the valuable gold nuggets, without having to work through every account.
cipher:collections from Fraudscreen does this for you. Built using the payment histories of 17 million UK consumers, it segments your debt portfolios to accurately predict who is most or least likely to make a payment. The strength of these predictions is proven to be consistent across different types of debt - by sector, by product and by age of debt.
Reduce wastage, collect more
With no on-going customer relationship at risk, recoveries action needs to be justified by the value of the debt recovered. This may sound obvious, but it has a marked effect on what actions are affordable. Understanding likely recovery rates and break-even points are the bread and butter calculations of every DCA and Debt Purchaser. But without effective segmentation tools, these cost insights cannot be exploited effectively.
By integrating cipher:collections coding into your business, you'll be able to improve the management of your collections resources. Are you choosing the best accounts to make the most of the talents of your collectors? Are you directing time, energy and money according to the greatest likely financial return? Fraudscreen can help you answer these questions by highlighting the likely payment behaviour of your portfolios, so you can better identify the likely cost and effectiveness of future actions.
