![]() What is a credit bureau?Ī person who, for compensation, gathers, records, and disseminates information relating to the creditworthiness, financial responsibility, and paying habits of, and similar information regarding, a person for the purpose of furnishing that information to another person. With the exception of certain attorneys acting on behalf of their clients, a person who directly or indirectly engages in debt collection, including a person who sells or offers to sell forms represented to be a collection system, device, or scheme intended to be used to collect consumer debts. In Texas, third-party debt collectors and credit bureaus are governed by Chapter 392 of the Finance Code, as well as any other applicable state or federal law. If you have specific legal questions, consult your attorney. The answers to our Frequently Asked Questions are provided for informational purposes and are not intended to provide legal advice or to substitute for the advice of an attorney. SOSDirect: Business Searches & Formations.Debts that are below a certain threshold are more likely to lapse, as it allows collection organizations to devote more time to collect larger debts. The organization will choose to either let the debt lapse or pursue legal action. Final notices will often be sent at this time. ![]() This can include tools designed for identity identification, field agents, or private investigators. The collectors follow up on initial contact, using various techniques to ensure contact is made. Initial notices of collections attempt are sent out to debtors to inform them of their status, either through postal mail, telephone, email. Do they have phone numbers, email addresses, or mailing addresses of the debtor? If they have none of those they might have to contact a debtor’s family member first. Debt recovery process flow charts typically involve the following steps:Ĭollection organizations gather information about the debtor to understand them and their debt and then determine the best way to contact. The first step starts by contacting a debtor and ends either when payment is received or the collections organization allows the debt to lapse. Establishing a standardized collections process flow allows for faster, more accurate data collection.ĭebt recovery is the end goal of a collections agency or department. Get a better grip on them with a standardized work flow that everyone has to follow.įinding the correct contact information for a debtor can be hampered by inefficient contacting processes. Having clean, concise, and documented processes makes it easier to bolt on additional staff when the time comes to scale up operations.Įvery debt collections agency has had that rogue collector that goes against all compliance. Moving cash discounts from the end of the process to the front can reduce write-offs, but you might not uncover this insight if you don’t have the process documented. The same is true for debt collections processes – the more mapped out the collections journey is, the faster you can reach the end-point of money coming in.Īnalyzing process work flows, and layering on the right metrics allows debt collections managers to understand what steps in the process are effective, and which ones aren’t. Imagine how long it would take you to get to your vacation destination without a map to get you there. Benefits of flow charts being used to analyze and manage debt collections organizations include: It also protects the collector from errors in debt assessment, ensures that write-offs happen when they should, and reduces redundant work – you don’t want two of your collectors calling the same debtor at the same time. Contact OpsDogīenefits of Process Flow Charts for Debt CollectionsĪ properly implemented process work flow doesn’t just improve the efficiency and speed of a collections organization – it ensures a good cash flow. ![]() Contact us now to discuss a BI engagement with OpsDog. Let us take your KPIs & business intelligence efforts to the top.
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