In today’s world, technology and the proper systems are important in the process of collecting debt.
At Howe & Associates, we utilize an integrated approach of technology where appropriate, coupled with the person to person experience of our team of experienced attorneys. We came across a recent article which better describes the technology challenges in managing debt collection.
The article by Roopa Pereira, titled “Risks vs Rewards – The Dynamics of Debt Collection” begins by describing the problem as
“A joint study conducted by the Urban Institute and Encore Capital Group’s Consumer Credit Research Institute showed that about 77 million Americans currently have a debt in collections, which amounts to 35% of consumers with credit files or data reported to a major credit bureau”.
The article highlights the growing problem facing business who are trying to collect overdue debt, when it states
“Even a fractional reduction in loss rates for large consumer portfolios can result in a significant and recurring reduction in credit losses. Maximizing return on investment by minimizing unpaid loans and managing traditional credit risk as well as profitability factors such as customer retention and resources are all key components of a financial institution’s Collections and Recovery process.”.
With the problem summarized, the article goes on to highlight the technology challenges facing debt collection firms.