Articles and Whitepapers on Collection & Recovery
Maximize Bank Debt Recovery Successes Utilizing
These Strategies
By: David P. Montana
Bank debt recovery is growing, mostly because of a poor economy affecting both consumers and markets
around the world. Banks and credit unions are adding new techniques and strategies to improve bank
debt collection.
Banks are witnessing continually growing loan and credit card defaults, as well as checking account
charge offs, due to years of steady rising consumer debt, as consumers face trying to just pay for the
necessities. Because of this, banking and credit unions are incorporating new strategies to help improve
debt recovery success.
Below are a few recommended bank debt recovery tips, which will definitely help increase your debt
collection success.

Offer flexible plans for customers experiencing financial hardship.

Create "hardship" programs for borrowers who are late with their payments.

Offer a new payment schedule, and/or lower payments, fees and interest rates when
you anticipate customer payment problems.

Create an avenue of communication where customers can freely talk about their issues.
You can prevent much larger problems from occurring later by being proactive earlier.
Along with your existing internal debt recovery processes, these strategies are meant to "flag" potential
problems sooner, and prevent them from growing into larger delinquencies later.
When To Consider Outsourcing Bank Debt Recovery to Collection Agencies
Another "must-do" for institutions with growing bank debt collection problems is quickly getting rid of, and
outsourcing bad debt accounts.
Employing some of the tips suggested earlier, you'll be better equipped to identify, early on, the more
difficult accounts, and distinguish them from the customers that you can work with internally through
payment arrangements.
These more challenging accounts must be identified early on in the process, and outsourced to a
collection agency. Failure to do so decreases the possibility of ever getting paid on them. It will also cost
you much more in wasted time, resources, etc. Failing to do so, not only decreases your likelihood of
getting paid on them at all, it costs you far more in time, resources, etc.
Compiled by Profitera Corp.
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Articles and Whitepapers on Collection & Recovery
Some collection agencies offer programs designed to restore negative accounts and retain banking
customers before the account is closed or charged off. In fact, research shows customer retention
equaling 70% or better can be achieved, as well as restoration of negative account balances when
contacted pre-charge off.
The crucial element is reaching these customers before the account is charged off, not afterward.In
addition to the incentive to clear up their negative account balance, it is also proven that after a past due
account is closed and charged off, these delinquent customers typically seek new bank accounts at other
institutions.
Once this happens, there is little interest in that customer bringing their delinquent, charged off account,
current.
About The Author
David Montana is a recognized expert, consultant, author, and a veteran for 30 years in collection agency
services. He likewise offers additional useful tips and options on collecting debt.
Source: ezinearticles.com
About Profitera Corporation Sdn. Bhd.
Profitera Corporation is a leading technology provider of Revenue Collections, Debt Recovery and Agency
Management Software Solutions. With offices in Malaysia, Singapore, the US and Partners in Asia, Middle East and
Europe, Profitera provides solutions to help its Customers focus on their Clients and optimize Profits throughout
their Revenue and Profitability Lifecycle. As experts in Revenue Collections, Debt Recovery and Agency
Management, Profitera continuously brings real-time scalable technology to the doorstep of its Customers to help
reduce Bad Debt and improve Profitability.
Enterprise Revenue Collections & Debt Recovery Software Systems
SMS Notification and 2-way SMS Interaction software platform
Data Management and Software Integration Services
Data Analysis, OLAP and Multi-dimensional Cubes for Online Interactive Reporting
Compiled by Profitera Corp.
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