Free Report: Top Two Successful Credit Card Collection Strategies

Download this Free Report and Learn:

• Why some credit card issuers are changing their expectations about debt collection operations and their contribution to reported earnings
• Why increased chargeoffs, lower credit card collection in contingency networks, and lower proceeds from debt buying are challenging credit card collection executives
• What tools agencies are utilizing to fix credit card collection issues

Discover the credit card debt collection strategies you need to know

How debt collection professionals can improve credit card collection rates

All of the largest creditors have access to the same tools within their toolboxes to manage credit card debt collection: pre-chargeoff call centers, contingency agencies, legal networks, debt buyers, bankruptcy servicers, etc. However, we have seen that credit card companies are choosing between these tools in much different ways in attempts to fix their credit card collection issues.

How is credit card collection affecting card companies?

Some credit card companies have increased their sale of debt portfolios over the past six months to increase the pace at which receivables are converted into cash. This strategy is typically utilized only for the sale of certain buckets of debt. The decision to sell necessitates discontinued placements to a contingency network, so a card issuer must trade the longer-term cash flows of agency recoveries for the short-term proceeds of a sale.

Download Top Two Successful Credit Card Collection Strategies

...and learn how a successful debt seller promotes a portfolio to the right debt buyers in the market.

With the rise of debt buying, many debt sellers have been challenged to generate expected returns on debt sales - in some cases, experiencing year over year price decreases of as much as 40 percent.

Has credit card debt collection forced card companies to wait for cash?

Download Top Two Successful Credit Card Collection Strategies

...and discover:

• Why some creditors are reducing debt sales or suspending them altogether
• Credit card companies are expanding their contingency networks and increasing placements to current agencies
• What impact this action and the economy has on credit card debt collection rates

What's the right approach to credit card debt collection?

Download Top Two Successful Credit Card Collection Strategies

... and learn if you're doing it the right way:

• How the country's largest credit card companies have chosen between the top two credit card debt collection strategies
• What impact have decreasing debt sales prices and poorer credit card debt collection rates had on card companies
• What's the best strategy for these creditors - bring cash forward or wait for cash

Why internal analytics are critical for credit card debt collection

Some credit card issuers have developed detailed and multifaceted financial models to evaluate credit card debt collection options by the net present value of cash flows associated with those options. In this way, a credit card issuer's decision to bring cash forward in a debt sale can be modeled against the cash flows likely to be generated by its contingency network.

Download Top Two Successful Credit Card Collection Strategies

...and learn:

• Why internal analysis is critical for credit card companies
• What are the unpredictable factors that may affect internal analysis - prolonged recession, unemployment rates, etc
• What impact certain debt sales have on a credit card issuer's ability to monitor liquidation

External knowledge of credit card debt collection agencies

Credit card issuers with even the best internal analytics may lack the information to create an optimal debt collection strategy. Debt collection agencies vary in terms of competencies, performance, and business practices. Have you chosen the right partners?

Download Top Two Successful Credit Card Collection Strategies

...and discover what credit card issuers are doing to engage the right debt collection service providers.