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Better recovery rates through payment plans
Payment plans are becoming more and more important for recovering larger dollar amounts while the economic conditions and the cost of fuel, as we reported in June, affect American's monthly cash flow.
Many Americans are in a serious pinch as prices go up and business activity goes down. High credit card debt rates, low home values and high foreclosure rates mean that more people are struggling with expenses and debt from paycheck to paycheck. Settling a debt for a lump sum is not often an option. Payment plans, that fit in with other scheduled payments, can help keep debtors out of bankruptcy and enable higher cured delinquencies.
Working with customers to make regular payments in good faith can recover more of the debt in the long run, than would be able to be manage in one lump sum payment. The schedule can depend upong the type of credit instrument but requires some flexibility from the lender. Making sure that the customer can manage the agreed upon payments is key. If they are too high, you'll be back where you started. So it is advantageous that your collectors have the approprtiate negotiation skills as well as tools to help secure successful payment plans.
Collection companies need to be flexible with regard to the structure of debt repayment arrangements as well as ensure that the appropriate compliance tools are in place to negotiaste successful payment plans.
Having helped manage the collections practice
for the third largest financial institution in
the United States, Allyson Boudousquie brings
a practical perspective to her role as director
of business process marketing for collections at
Aspect Software.
As a subject matter expert on the collections process,
Allyson is responsible for understanding the needs of
the market, identifying drivers and trends for future
growth and applying this insight to help create
value-added products for Aspect customers focusing
on the collections process. Before joining Aspect,
Allyson served as an officer for NationsBank. Among
the projects she managed while at NationsBank included:
creating and implementing the analysis of outbound
predictive dialer strategies and daily operations for
the collections departments, collections of delinquent
credit card accounts and developing and coaching staff
supervisors and associates on the collections process,
as well as design and implementation of automated fraud
detection solution for credit card security area.
