Collections & Credit Risk articles from November 2007

Collections & Credit Risk archives from November 2007

Back Home Again: Life has been full of change for my family in the past few months. New house. New town. New car. And, let's see, there seems like there was something else...
November 1, 2007... Ah yes, new baby! Our first child, a daughter, arrived in late-July. As you might guess, our lives now happily revolve around her. Of course, as much as I'd love to, I'm not here to talk about the little lady. I'm here instead to...

Fair Debt Collection Practices Act: Under the Microscope in Washington.
November 1, 2007... Editor's Note: Extended coverage of the FTC's review of the FDCPA will begin in the December issue, because of Collections & Credit Risk publication deadlines. For regular news updates, go to www.ccrmag.net or watch for them in CCRNewsline. ...

Industry Briefs.(West Asset Management adds 55 to 60 positions by the end of the year)(Transcom WorldWide S.A. opened a contact center in Valdivia, Chile)(Experian has launched BusinessCreditFacts.com)
November 1, 2007... Universal Fidelity LP, a Houston-based collection agency, signed a five-year agreement to collect taxes, fees, fines and parking tickets owed to the New York City Department of Finance from individuals and companies outside New York. West...

Correction.(Correction notice)
November 1, 2007... The photo on page 16 of the September issue was incorrectly identified. The person pictured is Michael Pogozelski, director of credit solutions for CGI Group Inc. The quote and attribution with the picture are correct. CCR regrets the error....

Student Loan Law Worries Lenders, Some May Exit the Business.
November 1, 2007... Apart from the positive developments for students and graduates, the College Cost Reduction Act of 2007, signed Sept. 25 by President Bush, has immediate implications for lenders, and eventually may affect collection agencies and buyers of...

FTC Sues Debt Program Marketers.(Federal Trade Commission)(Edge Solutions Inc., Pay Help Inc. Money Cares Inc. and The Debt Elimination Center)(Brief article)
November 1, 2007... The Federal Trade Commission charged four companies and their principals with deceptively marketing a debt settlement operation that failed to provide services it claimed would reduce consumers' debt. Edge Solutions Inc. of Delaware, Edge...

Let's Talk: Agencies and clients try to clear the communications hurdle with best practices that include meetings, work rules and feedback loops.
November 1, 2007... You can't always get what you want. Just ask Frank McGonagle, vice president of bankcard collections at Bankers Bank, N.A., Atlanta. McGonagle placed a batch of charged-off credit card accounts with a collection agency. To follow up, he...

Staying Local.
November 1, 2007... With e-mail, cell phones and blackberries, does it really matter where an agency is located anymore? Communication is instantaneous everywhere. But sticking with a local agency has led to success at the Boeing Employees Credit Union...

Case Resolution Strategies for the 21st Century: Providing agents with the training and tools to be debt counselors instead of simply collectors can significantly boost recoveries.
November 1, 2007... The following are two common scenarios for collection agents: A debtor owing $3,000 is reached on the phone. The debtor only has $500 available but still agrees to pay in full, using an e-check. The agent doesn't know there are insufficient...

Don't Forget the Basics.(consumer payment)(Brief article)
November 1, 2007... One method of case resolution that often is overlooked involves simply becoming more hands-on with accounts. This tactic is best suited for early stage delinquencies on accounts that are likely to enter delinquency, such as mortgages and...

Mortgage Meltdown Issuers Take Cover: The credit card industry should know within a year whether the subprime mortgage crisis will create new problems.
November 1, 2007... Precautionary measures taken by mainstream credit card issuers appear to be keeping the industry ahead of the subprime mortgage market's collapse, but it's far too early to assess any long-term damage. As more people struggle to make ends...

Finding Fortunes in Small Balances: Some collection agencies are finding success in small-balance collections. Where are the opportunities?
November 1, 2007... Chasing a $100 debt hardly seems worth the time and expense for most commercial collection agencies. Yet, increasingly, collecting small-balance accounts is a popular pursuit. In specialized industries such as transportation, overnight...

The Art of the "Turn Over": Redirecting collections to an account manager, commonly called a "turn over," can be profitable while creating a sense of teamwork for a collections team.
November 1, 2007... Let's face facts: third-party debt collections is another form of sales. We sell the idea of the urgent need to pay a past-due debt. Like any sales representative, collectors are judged by results - and ultimately by their paycheck. ...

Delinquencies and Foreclosures.
November 1, 2007... Mortgage delinquencies and foreclosures each hit a four-year high in the second quarter ended June 30, according to the Mortgage Bankers Association's latest National Delinquency Survey. The delinquency rate for mortgage loans on one- to...