Debt recovery can be complicated and requires in-depth data and informed strategies. Whether you’re a financial institution, third-party collector, corporation, or debt buyer, you need tools to help you collect and recover efficiently. It’s important to develop a more focused debt collection strategy to help reduce costs, save time, and maximize resources.
While there isn’t one magic solution to the collections process, accessing up-to-date and accurate data from a public and private records search engine is key to making the collections cycle quicker and more effective. Gathering accurate data will help you avoid wasting time and ensure you’re working efficiently as possible – in turn making you more money. Here are 3 tips for how to use data to streamline and shorten the collections cycle:
Locate hard to find debtors
One important tool to aid in debt recovery is skip tracing. Collectors need to be sure they’re contacting the right person so they’re not wasting time and losing money with outdated contact information, like old phone numbers. In these situations, skip tracing tools provide a fast, simple, and effective method of tracing debtors who have disappeared in an effort to recover the debt owed.
Skip tracing provides collectors with access to the most updated contact details for the debtor. Most debtors will not leave updated contact details or forwarding address when they skip town. With a skip tracing tool, collectors can get the most current phone number and address no matter how many times the debtor has changed their number and address since skipping town.
With the right private and public records search engine, you can not only gather a debtor’s entire address history, but you can also find information about relatives, business associates, and even neighbors. Even if you cannot skip trace or contact the debtor through their direct records, relatives or other people affiliated with the debtor may be able to provide you with valuable insight into the debtor’s whereabouts.
Perform a debt recovery assessment
Another important part of debt recovery is assessing the targets for debt recovery. A debt recovery assessment helps you assess and segment your accounts, identify payment propensity, monitor changes, and customize and prioritize your collections workload.
Prioritization is an incredibly important part of debt collection. A collector will want to utilize at least part of their resources to track down individuals who are easier to find while also still looking for people who want to stay hidden.
The other side of a debt recovery assessment is determining who can pay off their debt. An assessment can figure this out by looking at several negative indicators (bankruptcies, foreclosures, etc.) as well as positive indicators (assets, property owned, etc.).
Maintain an effective debt recovery strategy
An effective debt management program relies on thorough data and the ability to leverage technology. With Enformion’s data and solutions, creditors and collectors can continue to segment, identify, and ultimately collect on accounts.
Collectors must pay attention to the debtors they’re chasing. Even if they currently have the proper notification information for certain individuals, a collector may never know when that information could unexpectedly change. Debt buyers can use our data to identify records with bankruptcy, liens, or judgments.
With the right partner to aid in debt recovery efforts, collectors can locate hard-to-find debtors, perform a debt recovery assessment to prioritize collection efforts, maintain up-to-date records, and develop an effective, ongoing debt recovery Strategy. Contact Enformion today to learn more about how our powerful data sets can help in all your Debt Recovery efforts!