 |
Archive for May, 2009
Tuesday, May 12th, 2009
As more and more debts are incurred during this economic downturn, debt collection agencies are using more creative and advanced means of technology in their pursuit of debtors.
John Nemo, spokesman for the Association of Credit and Collection Professionals International, which represent industry members in the US, Canada and around the World said “I think it is an industry that is always on the cutting edge of information technology. The industry is always looking for the newest, latest, greatest way to track down the right person.”
Moving further than phone calls and letters, debt collection agencies have also started to make use of websites such as Facebook, MySpace and Craigslist in an attempt to track down people who have not paid their bills. Craigslist shows phone numbers and email addresses, Facebook a plethora of information about family members and other contact information.
By using such tools in a legal, and ethical manner, debt recovery companies are able to trace more effectively and efficiently and, as a result, potentially have a quicker turnaround on the collection of a debt from when it is passed to them.
Databases also play a big part in the debt collection industry with debtor profiling taking a front seat in collection agencies as firms attempt to use statistical data to focus on collection from those more likely to pay. Demographics, socioeconomic data and historical information are all analysed to help predict where collection agencies should focus their attention.
A famous movie once opened with the line “in a galaxy far, far away,” – perhaps that galaxy is now a lot closer than people realise.
Tags: debt collection, debt recovery
Posted in Debt News | No Comments »
Monday, May 11th, 2009
Over 50,000 men owe at least £30,000 each with a large portion of the debt being declared uncollectable.
Out of the £3.8bn worth of debt that the Child Support Agency has so far failed to collect, there are over 50,000 men who over £30,000 each in maintenance arrears for support of children from previous relationships.
The Child Support Agency brought in debt collection agencies to assist in the matter and try to enforce payment of the arrears but, so far at least, have only succeeded in collecting 6% of the outstanding amount.
The Child Maintenance and Enforcement Commission (CMEC), which last year took over the Child support Agency (CSA), have resigned themselves to the fact that most of the debt is uncollectable but has no power to close cases without the agreement of the parent who has care of the child.
Pressure groups are calling on the commission to split the amount of debts into two – those that are collectable, and those that aren’t.
Janet Allbeson of Gingerbread, a charity for one parent families, said “It would be preferable to come clean and say, ‘This particular debt is not collectible any more.’ It would put a lot of lone parents with care out of their misery.”
Tags: debt collection
Posted in Debt News | No Comments »
Friday, May 8th, 2009
The short answer is yes, but then actually getting the mobile broadband is another issue.
During 2008 mobile broadband companies have seen huge growth in demand for the product, particularly as, especially as christmas approached, many offered a free laptop with the mobile broadband. However, it was during the last quarter of 2008 that a large percentage of retailers offering mobile broadband rejected 1 in 2 people for the offer, with some rejecting as much as 3 in 4, based on the results of a credit check.
There is a certain irony in the fact that the offer is particularly popular with students, those on lower incomes etc who may not necessarily be able to afford the upfront cost of a laptop – yet it is these people who are most likely to be excluded from the offer as providers are playing safe and only accepting those who have a “very good credit rating” or those who are “low risk.”
The majority of the “free laptop” offers come with a mobile broadband contract for 18 or 24 months and generally range somewhere in the region of £25 to £40 per month. As there is no upfront fee involved, for either the laptop or the broadband dongle, the level of risk for the retailer supplying the laptop is considerably higher and it shows the level of confidence that retailers have in people meeting their payments as retailers lean more towards those with a particularly good credit rating as a result of a credit check.
Tags: credit check, credit checks
Posted in Financial News | No Comments »
Thursday, May 7th, 2009
A collection of suggestions on how utilising a debt collection agency can help with improving the profitability of a company.
At Federal Management, we have long realised that many small companies and businesses lack the staff and/or the experience to be able to deal effectively with bad debts and that help from a debt collection company can aid in in settling long and overdue accounts.
During times when every penny counts in this depressing and crisis hit economy, it can be easy for even the best customers to struggle to settle their bills. When faced with debt, customers can become more paniced and delay the time in settling an overdue account – a situation that can leave many businesses with the need to confront their customers about unpaid bills.
Collection agencies that treat clients with respect and diplomacy can provide methods that assist customers with facing their debt and prioritizing their bills,” says Jeff DiMatteo, partner at American Profit Recovery, a international debt collection agency in the United States. “A sound collection agency will employ proven methods of success that boost a businesses’ bottom line, firm up internal collection methods and preserve long-term relations with devoted customers. Knowing what to look for in a collection agency enables companies to find the best fit for their specific internal needs to flourish in any economy.”
Some debt collection agency practices to be aware of when searching for a reputable debt collection company to are:
- Act Early: It can be necessary for a debt collection agency to act as early as 30 days after an account is overdue. Early intervention may not always be feasible for a small business or workforce due to logistics and many businesses simply cannot provide this service in-house which is why out sourcing to a reputable debt collection firm can increase profitability.
- A Diplomatic Approach: A collection agency who acts quickly while utilising a respectful mail-based system can have a greater rate of success in the recovery of overdue accounts. a written demand sent early in the process can have a dramatic effect on customers – this kinder, less threatening approach can help to ensure your invoice stays at the top of a pile.
Seeking assistance from a reputable debt collection company that has a proven record of recovery, making use of the correct methods of collection, can help to not only get a business back on the road to recovery, but also to retain customers.
Posted in Debt News, International Debt News | No Comments »
Wednesday, May 6th, 2009
Tenant demand continued to fall across all sectors during the first quarter of the year, although the rate of decline has slowed slightly.
The RICS Commercial Property Survey which was recently published showed that there was to be an expected accelerated increase in the rate of rental declines on the back of the large increase in available floor space.
65% more surveyors reported a rise in available floor space, a figure up from 57% in the 4th quarter of 2008.
It said the ‘ongoing contraction in the economy and the continuing rise in available floor space have weighed on surveyor expectations for the rental outlook’.
‘Surveyors are now more pessimistic than ever before with 80% of surveyors expecting a fall than a rise in rents. The value of inducements (a lead indicator of future rental trends) rose at the fastest pace in the survey’s history as landlords continued to try to boost demand with incentives,’ it said.
As always, we recommend all landlords to utilise a credit check service on all tenants they are considering renting to, such as Creditsure, as a means to prevent debts being built up from unscrupulous tenants.
Tags: credit checks
Posted in Financial News | No Comments »
Tuesday, May 5th, 2009
A debt management company in San Francisco has reported an increasing trend in debt collection agencies being prepared to accept longer term payment arrangements.
Solve Debts, a debt management company based in San Francisco, California, director Andy Creager said ” Banks and credit card companies are trying to protect themselves from a wave of defaults that are taking place. As a result, consumers are now is a good position to negotiate with their debt collectors or lenders.”
While not all debt collection firms are willing to negotiate, a large percentage understand that “something is better than nothing” and in hard financial times for everyone, working with a debtor to reduce what they owe is a more beneficial task.
Federal Management recommends contacting the collection agency chasing you and asking to be put on a regular payment plan if you are unable to clear a debt in full. You will find most firms are quite willing to sit down and plan a mutually beneficial arrangement out.
Tags: debt collection, international debt collection
Posted in International Debt News | No Comments »
Friday, May 1st, 2009
According to a report by the National Audit Office, the Department for Work and Pensions is continuing to make a mess over benefit overpayments.
While the DWP is still on track to meet its targets, the debt recovery of overpayments from £180m in ’05-’06 to £272m in ’07-’08, overpayments in ’07-’08 were £558m which means an overall debt increase of 7% from £1.67bn to £1.8bn.
The report found that while £3 is recovered for every £1 spent on debt recovery, the DWP is restricted in what it can take from claimants under Social Security legislation and it also has major problem in tracing people who are no longer receiving benefits.
The National Audit Office also said that the DWP needed to make more efforts in encouraging people to inform them of a change of circumstances, utilising new technologies, such as texting as a means of gathering such information. the NAO also recommended that Income and Expenditure reports be analysed when negotiating payment plans for repayment, as well as better monitoring of debt collection practices.
NAO head Tim Burr said: “The department has improved the effectiveness of its debt management operations. The amount of cash recovered is increasing, but so is the amount tied up in debt, [because] recoveries are not keeping pace with the growth in identified overpayments. Helping more customers stay out of debt will need to be an important part of the answer.”
However, Steve Webb, Lib Dem shadow Work and Pensions Secretary was less enthusiastic, citing the Government’s record on benefit overpayments as “appalling,” particularly as so much is down to official error.
“The benefits system is crucial to help people in a recession. It cannot afford to lose money because of poor administration,” Webb said. “The benefits system needs to be much simpler, not least so officials can understand it properly.”
Tags: debt collection, debt recovery
Posted in Debt News | No Comments »
|
|
|
|
|
