Welcome back to this our 5th edition from our ‘Collections Common Timelines’ blog post series.
Following a deep dive into our data and receiving direct feedback from clients we’ve gathered together the industry average timelines and distilled best practice guidelines for you to measure your processes against.
We started our research by identifying what we consider the 6 critical stages of the collections timeline to be:
Over the past four weeks we’ve explored the above first 4 stages up to Early Collections, as well as adding mini case studies of our own deployed tactics that have helped us hit target for our clients (just follow the links above).
Short on time and want to read all 6 phases at your convenience?
In this week’s post, we follow on from Early Collections into the second to last stage of the process ‘Late Collections’, a period where deep consideration should be given when exploring the benefits of working with a ‘great fit’ DCA. Let’s take a deeper look:
There's an important role for DCAs in any collections process. A modern-day DCA allows your customers to engage with a 3rd party who hasn’t any preconceived presumptions about their account. They offer an opportunity for the customer to resolve the account before any further formal activity and have sophisticated methods to tailor plans to an individual’s circumstance.
The average DCA Process typically lasts 90 days. At this point, notification is made of an escalated account moving towards an agreed end process. There are of course variations dependent on the client and factors such as product type, the average value of the accounts, volumes of cases and the type of client requirements.
The tone is engaging but has to be fact-based when explaining the consequences of non-engagement - such as the impact of none payment on future credit decisions.
CRS in Action
At CRS we are constantly building new ‘Late Collections’ strategies to fit our clients’ needs.
Many of these strategies move through a number of communication stages where, for the first few weeks, we send content which confirms to the customer that we are now involved in the matter. Typically these attempts prompt the customer to login in online and self-serve rather than asking them to call straight away. If a positive response is not received we move into a reminder phase where we the engagement prompts become more direct. The next stage assumes customers have a reason not to pay so suggest that if they have a query or are working with a Debt Management Agency then to still get in touch as we can still help.
The final stages of our ‘Late Collections’ strategies are often geared around either an escalation to a litigation process (including details on the potential impact a County Court Judgment might have on their ability to obtain credit in the future), or a settlement opportunity to pay a reduced amount to close the matter, or both!
Accounts are then either escalated internally at CRS to the next stage of the cycle, often legal, or closed and returned to our clients for them to consider debt sale or 2nd placement with another agency.
Final words from CRS
Thank you for taking the time to read this post. As a friendly reminder if you’d like to read through all of the full 6 phases of the collections process in your own time then you can download the COLLECTIONS COMMON TIMELINES Whitepaper here or if you’d like to find out more about our technology and services you can download our brochure here.