NEW YORK, May 28, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Maximising Recovery Rates in Consumer Debt http://www.reportlinker.com/p0867530/Maximising-Recovery-Rates-in-Consumer-Debt.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Credit_and_Loan
Synopsis
• 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
Key Highlights
• Debt collection agencies are faced with an unusual and complex financial environment, a ballooning number of defaulters and high bank de-leveraging
• Debt collection techniques are evolving. It is much easier now, even compared to a few years ago, to determine market characteristics and prescribe new collection techniques
• Legacy processes such as credit bureaus, non-traditional scoring methods and internal scoring models are no longer relevant – agencies pursuing these routes are putting themselves at a disadvantage
• Debt collection is not just a purely operational procedure – efficiency now plays a key role
Companies Mentioned
Reintegra
Hunter Warfield
MVBA
Eversheds
MGt
HBOS
Table of ContentsExecutive SummaryList of FiguresList of Tables1 The debt collection industry after the banking crisis1.1 The crisis affects debts and collections1.2 Pre-crisis credit growth1.3 The shifting credit landscape1.4 Banks and lenders turn to debt collection2 Debt collection strategies and tactics call for new techniques2.1 Pre delinquency management2.2 The collection flowchart2.3 Analysis Contact2.4 Assessment2.5 Alternatives2.6 Monitoring Payments2.7 Managing a Recording System2.8 Further Communication and Follow-Ups2.9 Failure of Collections2.10 Delinquency stages and buckets2.11 Early Stage 2.12 Mid-Stage 2.13 Late Stage 2.14 Charge-Off2.15 Lawsuit2.16 Risk based strategies for late collection2.17 Increased Target2.18 Automation of Collection2.19 Reduced Costs and Resources Incurred3 Post crisis tools and technologies for debt collection3.1 The evolution of debt collection technology3.2 The debtor today3.3 Access Receivables management3.4 Technological requirements after crisis3.5 Post crisis technology for debt collections3.6 Credit Decisioning Programs3.7 Manual versus Automated Credit Decisioning3.8 Loan Portfolio and Debt Management Programs3.9 Components of Loan Portfolio Management System3.10 Loan Portfolio Management Review3.11 Risk-Based Segmentation3.12 Segmentation for Defining Losses3.13 Case Study #1 Benefits within Four Months after California Franchise Tax Board Automates its Decision Analytics System3.14 Case Study #2 Asset Management Company Tapped by California Hospital for Debt Recovery Strategies3.15 Predictive Diallers and Beyond3.16 Other Automated Dialling Techniques3.17 Integrating Technologies3.18 Maximising Other Communication Platforms3.19 Intelligence-Driven Communications Technology3.20 Case Study #4 Scotland Business Process Outsourcer MGt Utilises Automated Diallers to Increase Competitive Edge3.21 Case Study #5 Reintegra Utilises Data Mining Technologies to Track Non-Responsive Clients to Improve Debt Collection Ratio3.22 Recording and Monitoring Calls3.23 Improving the Collection Process through Technology: Introducing Speech Analytics3.24 Case Study #6 Hunter Warfield Utilises Call Recording and Speech Analytics to Ensure Compliance for Expanded Operations3.25 Tools for Payment Convenience and Flexibility3.26 From Web-Based Platforms to Virtual Collectors3.27 Virtual Collection Streamlines Collection Processes3.28 Case Study #7 Law Firm MVBA Increases Collection Rates and Returns, Reduces Collection Costs, through Online Site Credit Card Debt Payment System4 Advancing Collection Management4.1 Defining company objectives4.2 Workflow management4.3 Management techniques to improve collector productivity4.4 Developing an incentives system for collectors4.5 Collector segmentation4.6 Eliminating distractions in the workplace4.7 Quality monitoring and compliance management4.8 More than Technology: effective management5 Outsourcing collections and debt selling6 Global best practises in debt collection6.1 Best practises in the United States6.2 Communication Technologies6.3 The use of Predictive Diallers in the United States6.4 Interactive Voice Recording6.5 Social Media Communication6.6 Centralised Debt Collection6.7 Increasing Consumer Confidence via More Updated Payment Options6.8 Best practises in the United Kingdom6.9 Debt collection management systems6.10 Recovering benefit overpayments6.11 Best practises in Asia6.12 Improved Reporting System and Information Flow in Singapore6.13 Proactive strategies to prevent delinquency6.14 Improving collection staff quality6.15 Employing tools for decision-making in risk-based collections6.16 Offering payment alternatives6.17 Other debt collection practises6.18: Best practises in Central, Eastern, and South-Eastern Europe6.19 Multi-Channel Communication6.20 Collection at the right timing6.21 Competence of collection units6.22 Collection with a Third Party7 Consumer and debt collection – clearing the dividing line7.1 How debt collectors become consumers' common foe7.2 Social media abuse by debt collectors7.3 Excessive and frequent harassing calls and contact7.4 Pursuing fraudulent debts7.5 Closing the ugly gap between debt collector and debtor8 Challenges to the debt collection industry8.1 Information flow and data sharing8.2 Adjusting to the Influx of Changes and Innovations in Communication Technology8.3 Mobile Phones as Communication Tools8.4 Collecting Debt via Third Party Communication Tools8.5 Buying and Selling of Debt Portfolios and How It Affects the Industry9 Debt collection industry outlook9.1 Central, Eastern, and South-Eastern Europe Industry outlook9.2 United Kingdom Industry Outlook9.3 United States Industry Outlook9.4 Factors That Generate Growth and Development in the debt collection industry9.5 Evidence of growth10: ConclusionList of TablesTable 1: Credit Expansion RatesTable 2: Quarterly Bankruptcy FilingsTable 3: Characteristics of Consumers Who are Bankrupts, Those Who Enter Debt Agreements, and Those Who have Entered Personal Insolvency AgreementsTable 4: An estimation of production by a contact centre solutions providerTable 5: Estimated quantum of non-performing loan rates by country, 2008-2010Table 6: Collections Scorecard IllustrationTable 7: Mobile Phone (Wireless Communication) Usage in the United StatesTable 8: Seasonally Adjusted Unemployment Rates (%) TotalsTable 9: Median Weekly Earnings of Wage and Salary Workers in the United States, 2007-2011Table 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
To order this report: Credit and Loan Industry: Maximising Recovery Rates in Consumer Debt
Check our Industry Analysis and Insights
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