To improve debt collection efforts, some collection agencies are implementing advanced skip tracing tools by using collection triggers. Collection triggers monitor delinquent debtor accounts, and can accurately predict, identify and contact past due debtors with the ability to pay.
Many more consumers are facing home foreclosures, plus personal and business bankruptcies, due largely to rising unemployment numbers. As a result, many are facing large amounts of debt.
Not only job losses, but other life challenges, such as medical problems, or even divorce, can cause delinquencies. And it can take up to two to three years, or more, to recover from these unforeseen circumstances.
Once they find a new job, and/or regain their health, debtors often look to start new, fresh credit, as well as pay off older delinquent accounts. The problem is that sometimes these older debts can take a "back seat" to the newly acquired credit.
Locating debtors can be challenging, since some may end up relocating across state lines to look for work, or maybe for family reasons. A lot of these delinquent accounts end up getting outsourced to collection agencies to try to collect them.
Business organizations and other creditors typically turn over their seriously delinquent accounts to collection agencies, largely due to their limited ability to collect them consistently internally. Outsourcing to collection agencies also proves to be more cost effective.
It goes without saying that its very important to have processes in place that can alert or "trigger" creditors of changes in a debtor's financial status. And these skip tracing processes need to be efficient enough to reach them quickly.
The ability to quickly reach the debtor is critical, before the money is allocated somewhere else, as collection agencies and creditors are competing for the same limited monies.
Collection triggers can be a very effective tool for all stages of the debt collection process. Not only to be used for seriously delinquent accounts, but also for charged off accounts, judgments, as well as pre-charge off, early stage late accounts.
Many more consumers are facing home foreclosures, plus personal and business bankruptcies, due largely to rising unemployment numbers. As a result, many are facing large amounts of debt.
Not only job losses, but other life challenges, such as medical problems, or even divorce, can cause delinquencies. And it can take up to two to three years, or more, to recover from these unforeseen circumstances.
Once they find a new job, and/or regain their health, debtors often look to start new, fresh credit, as well as pay off older delinquent accounts. The problem is that sometimes these older debts can take a "back seat" to the newly acquired credit.
Locating debtors can be challenging, since some may end up relocating across state lines to look for work, or maybe for family reasons. A lot of these delinquent accounts end up getting outsourced to collection agencies to try to collect them.
Business organizations and other creditors typically turn over their seriously delinquent accounts to collection agencies, largely due to their limited ability to collect them consistently internally. Outsourcing to collection agencies also proves to be more cost effective.
It goes without saying that its very important to have processes in place that can alert or "trigger" creditors of changes in a debtor's financial status. And these skip tracing processes need to be efficient enough to reach them quickly.
The ability to quickly reach the debtor is critical, before the money is allocated somewhere else, as collection agencies and creditors are competing for the same limited monies.
Collection triggers can be a very effective tool for all stages of the debt collection process. Not only to be used for seriously delinquent accounts, but also for charged off accounts, judgments, as well as pre-charge off, early stage late accounts.
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Also, explore more important information and resources on commercial collection agencies, as well as business debt collection solutions.
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