Top Two Successful Credit Card Debt Recovery Strategies
Through our contact with recovery managers within the largest credit card issuers in the U.S., we have determined some prevailing trends in current debt recovery strategies. Some of our findings are included in this executive brief; Top Two Successful Credit Card Debt Recovery Strategies. Kaulkin Ginsberg is the leading advisor to credit issuers and their service providers in the field of receivables management. We've been specializing in this arena for nearly 20 years, and we know the issues related to credit and collections from a vantage point that nobody else has. |
How recovery managers are improving credit card debt recovery rates
All of the largest credit card companies have access to the same tools within their toolboxes to manage debt recovery: pre-chargeoff call centers, contingency agencies, legal networks, debt buyers, bankruptcy servicers, etc. However, we have seen that credit card companies are choosing between these tools in much different ways in attempts to fix their debt recovery issues.
Why are some credit card companies bringing cash forward?
Some credit card companies have increased their sale of debt portfolios to increase the pace at which receivables are converted into cash. This strategy is typically utilized only for the sale of certain buckets of debt. The decision to sell necessitates discontinued placements to a contingency network, so a card issuer must trade the longer-term cash flows of agency recoveries for the short-term proceeds of a sale.
Download Top Two Successful Credit Card Debt Recovery Strategies and learn how a successful debt seller promotes a portfolio to the right debt buyers in the market.
Why are other credit card companies waiting for cash?
Download Top Two Successful Credit Card Debt Recovery Strategies and discover:
- Why some creditors are reducing debt sales or suspending them altogether
- Credit card companies are expanding their recovery networks and increasing placements to current agencies
- What impact this action and the economy has on debt recovery rates
What's the right approach?
Download Top Two Successful Credit Card Debt Recovery Strategies and discover:
- How the country's largest credit card companies have chosen between the two strategies
- What impact have decreasing debt sales prices and poorer debt recovery rates had on credit card companies
- What's the best strategy for these creditors - bring cash forward or wait for cash
Download Top Two Successful Credit Debt Recovery Strategies and discover the criteria credit card issuers are employing to improve their debt recovery.
Download Top Two Successful Credit Card Debt Recovery Strategies here
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