Login to Submit a Blog



Captcha plugin for Joomla from Outsource Online
 

All The Collection Advisor Blogs

Please register to contribute. Login to your account is required for submission.
Submit a blog article.

Guest Blog
Soaring Student Loan Bad Debt PDF Print E-mail
Guest Blog
Written by Angie   
Wednesday, 28 November 2012 09:30

Soaring Student Loan Bad Debt

As of September, 2012 11 percent of the $956 billion in student-loan debt outstanding was delinquent, higher than the 10.5 percent of credit-card debt. Delinquency rates on mortgages, home-equity lines of credit and auto loans are at 5.9 percent, 4.9 percent, and 4.3 percent. Overall student debt (largely taxpayer dollars at risk) keeps growing. After first surpassing credit-card debt in mid-2010, the amount of student-loan debt outstanding has become 42 percent larger than the $674 billion of credit-card debt outstanding. 

The average college student who graduated in 2011 had $26,600 in student loans, according to a new report, which estimates two-thirds of last year’s college graduates had student loan debt. More than five million student loan borrowers have at least one loan past due. 96 percent of graduates from four-year, for-profit colleges took out student loans, borrowing 45 percent more than graduates of other types of colleges.

 
Is a Good Debt Collector “Born With It” or Taught? PDF Print E-mail
Guest Blog
Written by Dean Kaplan   
Sunday, 28 October 2012 17:51

A few months ago on LinkedIn there was an interesting discussion about the source of a collector's success.  Many people chimed in that there were certain personality traits that are typically critically important for being a successful collector.  Others focused on techniques that people can learn to better achieve desired outcomes and all of the laws and policies you need to learn.  As an offshoot of this discussion, our commercial collection agency compiled a list of actual debt collector job descriptions from the internet to see what qualities were listed as desirable by employers.  Not surprisingly, the job descriptions reinforced what was said in the LinkedIn discussion.

Some key debt collector personality characteristics cited were:

·         Perseverance;

·         Doesn't take things personally;

·         Organized and able to analyze complex situations;

·         Independent and self-motivated;

·         Not easily ruffled, particularly when dealing with irate debtors.

In the training arena, several key skill areas were identified as critical to a collector's success:

·         Salesmanship;

·         Customer service;

·         Thorough knowledge of company policies;

·         Understanding of basic accounting principles, particularly those related to the accounts receivable function;

·         Claim research prior to debt collection;

·         Skip-tracing techniques.

When thinking about the daily life of a debt collector, the personality characteristics seem like must haves for a collector to thrive.  Without at least some of these qualities, it seems hard to imagine why a person would want to do the job of debt collections and even more difficult to see how that person could be successful doing this type of work.  Personality traits such as perseverance and self-motivation cannot easily be taught.

At the same time, there is a lot a collector has to learn with respect to legal compliance and following company policies and procedures.  Many people are not natural collectors, but they can learn techniques to motivate people and understand which techniques are typically less successful.  So even if someone is born with great collector skills, they need to be teachable to be an effective member of your team.

 
Place Yourself in Your Debtor’s Shoes PDF Print E-mail
Guest Blog
Written by alex price   
Monday, 25 June 2012 11:35

Greetings from the great
State of Alabama! Roll Tide Roll!!!With my travels all acrossthis nation I have a unique opportunity to work with and train people from every walk of life—from the auto finance industry, to the bail bondsman, to the recovery agent.  No matter their line of work, the most common question I am asked is: "When should we start working a skip?" How far past-due should someone be before we start skipping them?  The answer may surprise you: "At the Point of
Sale."

Early recognition at the beginning will save you in the end. Asking the right questions so that your file has the right information up front lays the foundation for getting what you need later on.  Hopefully, the financial institution performed some of this groundwork for you.  If not you may be able to find it on your
own.

Before beginning work on any skip we must clear our heads of all of the daily distractions. Each of us wear many hats during our everyday lives. We are mothers, fathers, husbands, wives, business owners, managers, accounting experts, mechanics, conflict resolution experts, and the list goes on... Skip-tracing is the one job where we must stay totally focused on the task at hand.  You see, you are hunting the most elusive creature on the planet: MAN. Your prey
has the ability to reason and think, so your hunt requires the kind of focus that a professional brings to the game.

Many years ago I developed a simple exercise that will help you clear your head of any distractions and free the mind to focus on this task that we call skip-tracing.  Ask yourself these three simple questions:

1. What would you do?

2. Where would you go?

3. With whom would you stay in contact?

I do not believe there is a skip that cannot be found.  In my adult life I have only seen or heard of one true skip, and that was a gentleman by the name of D.B. Cooper who in 1971 hijacked a Boeing 727, ransomed $200,000.00, and at 10,000 feet above the wilderness of Oregon, jumped from the airliner
that was travelling at 200mph—never to be seen again. Now that was a skip!

Humans are social creatures, so we all keep in contact with someone from our inner circle. Take the famous case of Unabomber Ted Kaczvnski: he eluded capture for more than 20 years, living as a hermit with no power, water or cable--yet he couldn't resist the pull of his inner circle of contacts (review Question 3 above.) Once a month he traveled to town to purchase supplies and mailed letters to his mother and brother, who subsequently noticed the similarity in the writing style of the Unabomber.  They notified federal authorities, leading to Kaczynski's capture and conviction.

We are all creatures of habit and, statistically, we each will react in the same manner under the same circumstances. What I am asking you to do is place yourself in the shoes of your debtor and use your God-given gifts of instinct and imagination. If you will do this, you will find you are correct more often than not.

We must continue to strive to broaden our net in skip-tracing, by talking to more people who know or may know our subject until we find that one party that has the info that we need to capture our prey.

Until next time.....

Anthony "Alex" Price
Office: (972) 735-2353 Fax: (972) 735-2354 E-Mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 
Reducing Costs While Improving Service PDF Print E-mail
Guest Blog
Written by Heather Taylor   
Friday, 15 April 2011 11:47

Reducing Costs While Improving ServiceConsultation Review Request 

Commonwealth Financial Systems Inc., is a growing regional collection agency based in Pa. In 2009 they considered several collection letter providers with two primary goals: they wanted a collaborative, strategic partner who understood their unique needs and they wanted to reduce their overall collection letter costs.

"It seems counterintuitive to expect more attentive, engaged customer service and pay less for it, but that was our goal," says John Kotula, CFSI's president.

DANTOM partnered with CFSI long before the first data file was sent. The implementation followed a detailed project plan to ensure consistency regardless of who was completing specific tasks. The implementation was led by Linda Woodward, DANTOM's enterprise project director, who is a certified Project Management Professional through the Project Management Institute.

CFSI was assigned a dedicated Customer Service Representative and Sales Representative who learned the goals, needs and unique strengths of the organization. A relationship was built over time enabling the DANTOM team to provide even better service that aligns with CFSI's goals and business model. 

Over an 18 month period, CFSI realized a 15 percent savings on its collection letter costs. DANTOM employed multiple tools to achieve these significant savings that went straight to CFSI's bottom line. Using the National Change of Address and Address Element Correction from the USPS, CFSI suppressed letters that were known to be undeliverable. Removing these letters before they were printed and mailed, eliminated costs that would otherwise have been a waste of money.

In addition to saving the cost of a wasted letter, CFSI was informed of the need to locate a good address. Instead of waiting weeks for return mail to arrive, CFSI can now maximize the window of opportunity for collection.

Additional savings were achieved through DANTOM's ICL Letter Householding service which combines multiple letters to one responsible party in a single envelope.

Today, CFSI is delighted in the ongoing partnership with DANTOM Systems and on the positive impact to their bottom line. "Our entire organization has been impressed with the DANTOM team and their ability to achieve both goals."

 
<< Start < Prev 1 2 Next > End >>

Page 1 of 2