To improve debt collection efforts, some collection agencies are implementing advanced skip tracing tools by using collection triggers. Collection triggers monitor delinquent debtor accounts, and can accurately predict, identify and contact past due debtors with the ability to pay.
With an ever increasing rise in home foreclosures, as well as personal and business bankruptcies, due to growing unemployment rates, more and more consumers are drowning in debt.
Other life challenges, such as medical illness, divorce, not to mention a job loss, is often the reason for past due debts. Recovery from such circumstances can often take up to two to three years or even more!
Once the debtor finds employment or regains their health, they often seek to establish new credit, as well as pay off past due accounts. As they acquire new credit, older past due accounts can take a “back seat” to newly established credit.
Locating debtors can also prove to be a challenge, as many might relocate across state lines in search of work, or for family reasons. Many of these past due accounts are eventually outsourced to collection agencies to try to recoup.
Business owners and other credit granters usually turn over their problem delinquent accounts to collection agencies, due to their limited ability to collect them internally. Turning them over to a collection agency is also more cost effective.
It is very crucial that these alerts or “triggers” can alert creditors and collectors whenever there are changes to the financial status of a debtor. Also, these skip tracing tools need to be efficient in reaching them quickly.
The ability to quickly reach the debtor is critical, before the money is allocated somewhere else, as collection agencies and creditors are competing for the same limited monies.
Collection triggers prove to be a very effective tool useful for all stages of the debt recovery process. It can also be used for judgments, charged off AND pre-charged off accounts, early stage lates, in addition to seriously past due accounts.
About the Author
David P. Montana has long been a distinguished market sector professional, business specialist, and in addition, a writer when it comes to collection agencies services for thirty years. He provides additional important solutions, information and facts about locating debtors.
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