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Case Study Voice

Debt Collections

The client who approached Neural IT is a Debt collection firm operating in 14 states of USA. Their total receivable comprised of non-commercial debts ranging from mortgages, consumer loans, credit cards and student loans.

Challenges

The client was looking for a team which will deliver tasks like

  • Validate Debtor Demographic information.
  • Conduct Asset Search-Property and Bank Investigations.
  • Right Party connects.

Some of the main challenges foreseen in this project were the following.

  • Obsolete debtor contact information.
  • Lack of Business Intelligence while attempting to settle a claim.
  • High Attrition and unable to service low balance account due to rising costs.

Historical Approach

In-house Team of Collectors would spend hours to get the information to contact the debtor and with significantly low success ratio.

Neural IT’s solution

  • Neural IT assigned a Project Manager to understand, Define and Measure the expenditure in collecting on recoverable at pool/portfolio level.
  • Thorough Analysis was done and inventory was tiered in to five slabs based on mix of recoverable amount, aging of the debt, debtor demographics, debt type, statute of limitation and last contact. This enabled us to score the debts and focus on critical items.
  • Credit checks of debtors were limited to once in six months to avoid wasteful expenditure and resulting information was captured and archived for reference.
  • Technology Integration was done to connect to client’s dialer using VOIP and VPN Secure Network.
  • Trained an in-house team of collectors on FDCPA compliance for inbound/outbound call handling.
  • Call Transfer Solution to On-shore Collector for Right Party connect.

Results

  • 92-95% of inventory is churned every month.
  • Cost of Collections was reduced by 45% thereby adding to bottom-line objectives of the client.
  • Increased client’s bandwidth in terms of managing and taking new portfolios.
  • Updated credit worthiness of the debtors, enabled on-shore collectors to better negotiate with them and improve the settlement ratio.