This VRL report examines different debt collection strategies used in different countries around the world
It looks at a variety of methods and strategies that are available to increase the rates of debt collection and recovery
It presents best practices in various countries and regions, including the UK, the US, Asia, and Central Eastern and South Eastern Europe
It also presents a number of case studies covering debt management techniques and technologies
Summary
During such difficult financial times, where the economic environment remains volatile, debt collection agencies can only rely on the methods and strategies that they employ to increase the rates of debt collection and recovery. Debt collectors are faced with a multitude of challenges: external economic pressure, consumers with rising delinquency rates who are also faced with multiple credit relationships, and increasing competition in the debt collection agency. Considering this, obtaining a deep understanding on the various strategies in collecting debt implemented in various countries is a must to help improve debt collection rates and contribute to a rapid recovery from the global economic crisis. Different countries address debt collection in a myriad of ways such as through field visits, a third party debt collector, buying and selling of debts, and regular and constant reminders via multiple communication channels. There are also some who utilise threats and send lawsuits. The wide variation of debt collection practises makes it even more important to study and analyse each one of them so as to obtain a deeper understanding of the debt collection industry, financial industry, and banking industry.
Scope
A global look at debt collection, with a focus on best practice, and also consumer behaviour and analysis
A specific look at the issues impacting growth and development - unemployment, salary and wage rates and credit demand
Numerous case studies from the US, which remains the most sophisticated market from a collector's perspective
The report is supported by numerous charts and diagrams
Reasons To Buy
This report is updated to take account of post crisis tools and technologies for collection
It provides information on global best practise in debt collection but also presents analyses of the cause and effect of each practise
It looks at debt collection both on a regional and a country basis
There is an increasing emphasis on data management in the form of the risk analysis of each account segment
Table of Contents
Table of Contents
Executive Summary
List of Figures
List of Tables
1 The debt collection industry after the banking crisis
1.1 The crisis affects debts and collections
1.2 Pre-crisis credit growth
1.3 The shifting credit landscape
1.4 Banks and lenders turn to debt collection
2 Debt collection strategies and tactics call for new techniques
2.1 Pre delinquency management
2.2 The collection flowchart
2.3 Analysis Contact
2.4 Assessment
2.5 Alternatives
2.6 Monitoring Payments
2.7 Managing a Recording System
2.8 Further Communication and Follow-Ups
2.9 Failure of Collections
2.10 Delinquency stages and buckets
2.11 Early Stage
2.12 Mid-Stage
2.13 Late Stage
2.14 Charge-Off
2.15 Lawsuit
2.16 Risk based strategies for late collection
2.17 Increased Target
2.18 Automation of Collection
2.19 Reduced Costs and Resources Incurred
3 Post crisis tools and technologies for debt collection
3.1 The evolution of debt collection technology
3.2 The debtor today
3.3 Access Receivables management
3.4 Technological requirements after crisis
3.5 Post crisis technology for debt collections
3.6 Credit Decisioning Programs
3.7 Manual versus Automated Credit Decisioning
3.8 Loan Portfolio and Debt Management Programs
3.9 Components of Loan Portfolio Management System
3.10 Loan Portfolio Management Review
3.11 Risk-Based Segmentation
3.12 Segmentation for Defining Losses
3.13 Case Study #1 Benefits within Four Months after California Franchise Tax Board Automates its Decision Analytics System
3.14 Case Study #2 Asset Management Company Tapped by California Hospital for Debt Recovery Strategies
Table 9: Median Weekly Earnings of Wage and Salary Workers in the United States, 2007-2011
Table 10: Key Statistics for the Top Performing Small and Medium-Sized Business Industries for 2011
List of Figures
Figure 1: Individual Insolvencies in England and Wales, 2001 Q1 to 2011 Q1
Figure 2: Capital Inflows from Western European Banks and the Surge of Private Sector Credit
Figure 3: Net Capital Flows, 2008-2009 (GDP)
Figure 4: Bank Credit to Private Sector, 2008-2010 ???
Figure 5: Pre-Delinquency Management Strategies in a Traditional Bad Debt Cycle
Figure 6: Sample Collections Process Flowchart
Figure 7: Collectability of Delinquent Commercial Debts at Time Intervals after the Due Date
Figure 8: Factors Utilised by Debt Collectors to Determine When to Send Claim
Figure 9: Evolution of Debt Collection Strategies Over Time
Figure 10: Credit Management Process
Figure 11: Interface between Internal and External Data Sources
Figure 12: An Example of a Traditional Segmentation Method
Figure 13: Example of a Risk-Based Segmentation Method
Figure 14: Communication Platforms Utilised by European Banks to Contact Debtors, by Preference
Figure 15: Productive Talk Time Rate between Manual and Predictive Diallers
Figure 16: Adult Users of Internet and Social Media in US, 2011
Figure 17: Social Media Use by Age
Figure 18: Monthly Voice and Text Usage by Age
Figure 19: Delinquency Rate in Singapore 2011
Figure 20: Key Success Factors in Debt Collection in the Individual Segment and Professional and Micro-Enterprises Segments
Figure 21: Bank Credit Growth
Figure 22: Non-Performing Loans in Central and East European Countries
Figure 23: Expectations of European Banks on Development of Delinquencies in the Retail Segment
Figure 24: Total UK Personal Debt in GBP Billion
Figure 25: Unemployment Rates in the Eurozone
Figure 26: United Kingdom Unemployment Rate
Figure 27: United States Unemployment Rate, Quarterly
Figure 28: United States Unemployment Rate, Monthly
Figure 29: Labour Costs per Hour in the Eurozone
Figure 30: Average Weekly Earnings for Regular Labour Pay
Figure 31: Average Weekly Earnings for Regular Labour Pay
Figure 32: Job Growth in the Debt Collection Industry in the United States
Maximising Recovery Rates in Consumer Debt published by Timetric in April 30, 2012. This report consists of Pages: 95 and the price starts from US $ 3800.
