Debt Recovery Training ProgramDebt Recovery Training Program
Are you the head of a debt recovery program at your bank, financial institution, or finance department? Are you looking for ways to improve your organization's process of debt recovery and reduce costs? If so, you will want to implement these six key parts to a successful debt recovery program.
Locating Debtors
Tracking down the people who owe a company money can be challenging and time-consuming. For this reason, it is imperative to have access to the most up-to-date contact information while having the ability to recognize high risk accounts.
Collection Prioritization
Equally important in the debt recovery process is knowing how to prioritize debt collection. The better you are able to score, segment, and prioritize your accounts, the better you'll be at collecting more debt.
Monitor Unpaid Debt
Debt collection can be increased with constant and careful monitoring. Carefully monitoring a debtor's account will help you to know if and when they are able to pay their debt. For instance, if the debtor gets a new job they might be more likely to pay on a debt. By being on the ball, you can increase the chances of the debtor paying you instead of somebody else.
Collection Management Systems
A good collection management software handles every aspect of both small and large debt collections including: mortgages credit cards loans overdrafts To ensure efficiency and accuracy, your collection management system should also have features such as automated notices, callback scheduling, and payment plan management.
Reporting Consumer Debt
Debt recovery programs should make it a priority to report your accounts receivable to credit agencies. There are many advantages for doing so including:
Reduction in default when customers know you are reporting their payment behavior
Gives customers a chance to improve their credit
By knowing what's on their credit report, consumers can help fight against identity theft
When reporting to credit agencies, there are certain steps you will have to follow including getting approved, obtaining software, and a registration process.
Relationship Building
Establishing a relationship with your customers also plays a vital role for debt recovery programs. Knowing your customer will make it easier to get updated contact information and identify changing circumstances. Understanding your customers and interacting with them is just as important when it comes to building relationships.
By implementing these six keys, you will have a successful debt recovery program.