COLLECTIONS MANAGEMENT

 
 
 

Minimize Losses with White-Labeled Collections Management

Managing your collections in-house without the proper technology, staff, experience, or compliance resources is risky. You could be leaving yourself open to regulatory repercussions (i.e. stressful audits, costly fines, etc.) and you’re most likely not recovering as much as you could be recovering from your delinquent accounts.

Instead of spending the time, effort, and the money to get your operations up to speed, why not leverage the resources of an experienced Collections Management call center with all the technology, staff, and compliance controls already in place?

defi has been helping financial institutions like yours collect more and minimize losses for over 30 years with proven processes that have been tested and refined in partnership with leading industry servicers.

 

Expertise across All Portfolio Types

Whether you’re servicing prime, near-prime, or sub-prime loans, leases, or balloon notes, defi has the collection expertise to manage your auto or consumer lending portfolio. Experienced recovery specialists can handle even your most complex cases with proven results.

Proven Methods

defi has proven methods revolving around a multi-tiered process and recovery specialist training that helps you collect more money from accounts.

Multi-tiered collections process

Using a multi-tiered process that is based on the stage of delinquency, defi applies unique collection treatment plans at the account level which maximizes your return and protects your brand. Predictive outbound collection campaigns reduce losses before an account even defaults, while bankruptcy, legal, and repossession management service late-stage accounts.

The first tier of the process is made up of fraud detection, borrower education, and contact data verification.

defi’s fraud investigation and notification services help you and your borrowers navigate challenging situations, bringing them to a successful close.

Borrowers can fall behind on payments for other reasons as well and may need coaching to get back on track. defi collections agents provide borrowers with needed education about their options to help them pay and stay current on their account balances.

In this stage, contact information and data verification is key to future collection management success.

The second tier, Early Stage Collections, includes portfolio saturation efforts using dialer technology, account-level treatment planning, a review of returned mail, and light skip tracing.

Dialer strategies are key to any early stage collection process in order to mitigate future losses. defi’s account-level treatment planning utilizes specific data points in internal performance models to tell us where to focus our efforts. Borrowers respond differently to different communication channels (e.g. voice, e-mail, text, chat, etc.), so finding the right one for a subsets of your portfolio is essential to any collections strategy.

Additional back-line skip processes are just as important as dialer strategies. If you’re getting a lot of returned mail from delinquent accounts, you could have the wrong address on file for your borrowers which drives losses. Light skip tracing helps locate these borrowers and facilitate payment.

Mid-Stage Collections involves portfolio saturation using key account attributes, behavioral scoring, and alternative data obtained through in-depth skip tracing efforts.

Dialer workflows are made more efficient by segmenting delinquent accounts according to their key attributes and by using alternative data that may not have been initially considered. More in-depth skip tracing is performed to ensure that current addresses and other important contact details are on file for borrowers.

The final tier of the process is when an account enters Late Stage Collections. In this tier, accounts with high balances are flagged and legal, repossession, and settlement initiatives are started.

When borrowers fail to pay and their balances grow to reach a pre-determined tipping point, initiatives are started so that you can recover your outstanding assets and the value associated with them. Through a vast network of forwarders, defi is able to streamline repossession processing with regular updates from repossession agents so you know when your assets are secured.

Recovery specialist training

All of defi’s recovery specialists undergo a mandatory and comprehensive regulatory training program. This program provides you with a layer of protection that you can count on for compliance with regulations, including:

  • Reg Z (Truth In Lending Act)
  • Reg V (Fair Credit Reporting Act)
  • Servicemembers Civil Relief Act
  • Military Lending Act
  • Reg F (Fair Debt Collections Practices Act)
  • Reg B (Equal Credit Opportunity Act)
  • Unfair Deceptive and Abusive Acts and Practices
  • Reg P (Gramm Leach Bliley Act)
  • Reg E (Electronic Funds Transfer Act)
  • Telephone Consumer Protection Act
  • Reg M (Consumer Leasing Act)
  • State Debt Collection, UCC, UCCC
  • CDIA’s Credit Reporting Resource Guide

Leveraging Innovative,
Market-tested Technology

 

When you choose defi for Collections Management, you’re also choosing to leverage defi’s Account Servicing Platform.

With defi’s Account Servicing Platform, delinquent accounts are tracked and managed using specific rules within defined workflows, enabling defi representatives to provide you with key insights that you can use to improve your overall servicing operations. Automation makes easy work of the routine steps involved in the collections process for increased efficiency and mitigated compliance risk.

A solution integration is available that facilitates bankruptcy monitoring. Get automated, electronic notifications for accounts filing for bankruptcy, along with updates on all relevant bankruptcy activities. This active approach removes the risk of bankruptcy stay violations that often result from missed notifications or inaccurate data.

defi’s Account Servicing Platform even facilitates the speedy liquidation of repossessed vehicles and other assets. Don’t get stuck spending thousands of dollars in overhead fees.

Risk Mitigation

In addition to the extensive training that recovery specialists receive (mentioned above), your compliance risk is further mitigated through an approved Compliance Management System (CMS) that addresses Consumer Financial Protection Bureau (CFPB) expectations.

defi’s CMS comes with three lines of defense in place to help prevent possible violations of CFPB, FFIEC, and state regulations. defi senior management influences the development of defi products and services to ensure compliance. defi’s legal and compliance team monitors risks, controls, and industry updates. defi’s board of directors and independent audit committee provide assurance as to the competency of the operations performed by defi senior management, legal, and compliance. defi helps protect you from every angle.

 

Choose White-labeled End-to-end Collections Management

defi operates under your brand using your values and a complete comprehension of your products and programs for a seamless borrower experience.

 
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