A Guide to Building a Robust Vendor Management Program in Collections

For a lot of lenders, especially newer fintechs, who have spent the last two years originating loans and lines of credit, the obvious collections strategy solution to the challenge of an influx of charged-off or delinquent accounts is to use third-party collections agencies to handle delinquent and charged-off accounts.

How you vet those vendors and how you manage those vendor relationships will make or break your collections strategy. Proper management of those third-party collections vendors is critical to a successful recovery strategy, and it mitigates the risks associated with collecting on consumer debt.

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