Collection Process

 

Our process has been utilized and proven for over 45 years.  On this page, you will see an outline of the typical step by step collection process that is deployed on most accounts.  However, please keep in mind that in some cases, we will suggest and advice on a different course of action based on your company structure and needs.

 

Stage 1 - Case Submission.

 

Upon receiving your company data as well as the full debtor information, we will immediately set up your internal account information.  Debtor information is entered into our system and electronic acknowledgment report is sent outlining the submitter details and debtor details that will be displayed on all monthly reports with full activity reviews.

 

Stage 2 - Skip Tracing:

 

CCI can reference extensive and highly detailed databases of debtors whose whereabouts are unknown.  Our first line of offense generally lies with our own proprietary data.  All accounts are cross-referenced against the CCI database of over one million debtors.  Our collection software extracts accounts with no telephone number and/or no address information.  These accounts are then skip-traced agains the NCOA database or one of 5 software, web and cloud based directories which are network accessible by each Certified Collector.  Our Auto dialers will also generate a daily report showing a list of accounts that do not qualify for telephone contacts due to incorrect or missing data. Our speed and efficiency at identifying skipped accounts is of great assistance in locating even the most mobile and hard to find debtors, thus increasing debtor outreach and recovery rates.

 

Stage 3 - Letter Campaign.

 

Debtors will begin receiving a series of 4-5 letters – Day 1, 30, 45, 60, 90. 

The first notice is generated as soon as the account is assigned a unique number and entered into our collection system.  After 30 days, a second notice is sent followed by subsequent notices at regular intervals. 

 

Stage 4 – Direct/Electronic Dial Campaign:

 

Debtor will receive direct calls as well as electronic generated voicemail from our dialer systems. Within seven days after the first notice is mailed, an initial telephone contact is attempted.  the purpose of the first call is to verify the debt and address, possibly skip-trace the account and sort all accounts by status for Collector follow-up. 

In an effort to assist debtors in paying their debts, Collectors will bill insurance companies, suggest optional payment methods, set up time-pay arrangements and verify assets and/or employment to prepare for the possibility of litigation.  Our electronic dialing system's inbound call generator can be programmed to operate seven days a week from 8am to 9pm leaving messages for recipients to telephone our office. 

The returned calls prompted by the system is then answered by certified Collectors.  All accounts are worked for up to two years as decided by each client.  All closed out accounts are purged from our system and returned.

 

Stage 5 – Credit Reporting:

 

Debtor will receive a “Notice Before Credit Reporting” letter.  If we do not obtain response and payment, debt will be reported.  

 

The Basics:

 

Who - The big three credit bureaus. Equifax, Experian, Transunion.

What - Negative file of debts, payments, adjustments, closeouts ect.

When - Reported monthly or if necessary immediately.

Why - Improve collection recovery rates.

How - Electronically downloaded to all three databases.

 

The Benefits of Credit Reporting:

 

Increase collection results and avoid potential losses from professional debtors.

Debtors can ignore or avoid telephone calls and collection letters.  However, when they go for credit (and eventually they will), they will need to satisfy the debts on their report.

Eventually most individuals will attempt to: buy or sell a home, refinance a property, purchase or lease an automobile, apply for a credit card or apply for a HELOC.  And when they do, they will most likely need to satisfy any outstanding debts on their credit report.

Most debtors have multiple debts.  If a debt is not reported to the bureaus, then chances are the individual will not feel an obligation to pay the debt.  There is an argument that if the debt is not important enough for you to report, then the debtor may take the attitude it is not important enough for them to pay.

Individuals have cycles of success and hardship.  Timing is everything in collecting money.  Either they have it or they don't.  If the collection efforts don't include credit reporting then potential future successes will not be capitalized on.  An item on a credit report remains for seven years - adequate time for an individual's cycle to change.  If the account is not actively being worked and not credit reported, this will equal missed opportunity to recover the debt.

 

Credit Reporting is...accepted, anticipated and concerning...

 

One of the first questions asked by a debtor to a collection agency is always: "Does this debt affect my Credit Report?"

Every lender or creditor pulls a credit report before approval of credit is granted.  All banks, mortgage companies, credit card issuers, auto loans or leases and many others.

Consumers or patients now monitor their own credit report because they are concerned and/or interested in their "SCORE".  Each of the three bureaus, as well as several other credit based companies offer monitoring services.  Individuals are notified either online (email) or via direct mail of any changes to their credit report and credit score.

It is far more frequent that individuals request copies of their own credit report these days.  Prior years the bureau made it very difficult to obtain such information.  As a consulmer, everone is entitled to a free credit report, and more people than ever take advantage of this service.  They do so in part due to the simplicity of the internet.

The average debtor now understands that an outstanding debt on their credit history translates into a lower score and therefore potentially less available credit.

 

Helpful information and Websites on Credit Reporting:

 

www.equifax.com

www.experian.com

www.transunion.com

www.annualcreditreport.com

www.freecreditreport.com

 

Stage 6 - Litigation Preparation:

 

Our clients have litigation as another available collection option.  Before recommending litigation against any debtor, we make sure all other collection methods have been exhausted and that sufficient assets and/or employment have been verified.  You have absolute authority over which accounts are pursued by means of the court system. 

 

Stage 7 - Reporting and Accounting:

 

Our accounting services and reports are comprehensive, accurate and easy to understand.  We’ll tailor our reports to your needs and preferences allowing you to select from a variety of ways to have us remit the funds we collect on your behalf.  This can be done weekly, bi-weekly or on a monthly basis.

All of the following reports are standard system generated reports, and are typically produced monthly. Our computer services can also generate customized reports in the event the information requested is not available using one of the standard reports.

 

Descriptions of Available reports

 

Client Acknowledgment Report - Transmitted electronically or mailed to client within three days of turnover to verify the receipt and accuracy of referred accounts and balances.

Return Listing - A report that lists accounts purged from CCI’s system, which either have been paid in full or deemed not collectible, for the reasons specified.

Debtor Inventory - A periodic report listing accounts and balances by debtor status.

Service Type Summary - Details the account and dollar placements, average balance, dollars collected and liquidation percentage summarized by an unlimited # of client-specified service codes and descriptions.

Detail Client Analysis And Letter Service Reports - Details total client collection performance by month, MTD and rolling 12-Months showing new accounts and dollars placed; average balance; active accounts; active dollars; liquidation ratio; letter service accounts rolled into regular collections.

Monthly Activity Invoice - Shows date, description and type of debtor transaction; payments received by CCI and the client; fees retained by CCI; and the net remittance due client.

Miscellaneous Ad Hoc Reports - Custom reports & formats can be created by our flexible CR collection software system report

writer.

Client Requests or Inquiries - Account status update requests are preferred by e-mail and provided within 24 Hours of client   

request.

   

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CCI-BROCHURE

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CCI - FACT SHEET