As a business in need of collection services, it’s essential to have a partner that offers innovative tools to increase your recoveries. Here are a few collection tools offered by IC System that you may not find at other agencies.
There are few more compelling incentives to pay than credit reporting. Credit-conscious consumers will not want a past-due account on their credit report. If they cannot afford to pay now, a mark on a credit report will remind them to pay later. Credit reporting will help leverage the position of the collection agency and increase the account’s collectability.
On qualifying accounts, IC System reports consumer balances to three national credit bureaus at the client’s direction.
This typically occurs 45-60 days after we receive the account and is included as part of our standard collection process. When credit reporting is initiated, we offer the responsible party a 30-day period to resolve or pay the balance due to avoid reporting the debt information. This incentive prompts many to bring their accounts current.
Credit monitoring can be a strategic addition or alternative to credit reporting. Credit monitoring works like a radar, waiting for pings on the consumer’s credit profile that denote significant changes. These changes may include, but are not limited to, the opening of a new tradeline, a loan payoff, or a similar credit event that suggests the ability to pay.
At IC System, credit monitoring begins after the initial period of collection activity has been exhausted. But once IC System sees a ping, we resume collection activity. We monitor accounts with a balance of $100 or more for changes in the consumer’s credit profile. Changes in a credit profile could indicate an ability to pay, reflecting an opening of a new tradeline, a loan payoff, or similar noteworthy credit events.
IC System focuses on about 30 positive events that we use in our proprietary credit monitoring regimen. If a credit event occurs that indicates a positive credit change, the account is activated for immediate call attempts and subject to another period of calling per our usual intensive collection strategy.
Nine percent of the population moves each year, according to the U.S. Census Bureau. The bureau’s data on movement frequency reveals that the average person will move over 11 times in their lifetime. Based on the median life expectancy, that means the average American is moving roughly every six to seven years.
So how does all of this movement affect you? The short answer is that it creates a consumer base in constant flux.
New consumers appear in the market all the time, and previous consumers move to new locations. But the situation becomes problematic when customers with outstanding debts suddenly move away, making the collection process more difficult.
However, when a past consumer moves out of state, collecting on past-due bills could expose you to potential liability concerns if the collections are not handled in accordance with the law. Many businesses may not be aware of this risk, but it is becoming more and more common.
A nationally licensed collection firm can operate in all 50 states, and it also has the experience and knowledge to understand the unique collection laws existing in different states.
IC System is licensed and bonded to perform collection pursuits legally across all 50 states, Puerto Rico and Guam.
The Importance of Innovative Tools
Businesses face a unique set of hurdles. With many businesses struggling during COVID-19, they will have to increase cash flow in available areas—namely, in past-due consumer recoveries. Along with our unbeatable performance and consumer-friendly approach, IC System can help you recover more with innovative tools and features that give your recovery goals a boost.
For additional tips about how to improve your collection revenue, download out Time is Money eBook.
About the Author: Brian Eggert
Brian Eggert is a business development specialist and writer for IC System, one of the largest receivables management companies in the United States. With 18 years in the collection industry, Brian's experience includes operations, client service, proposal writing, blogging, content creation, and web development.