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Five ways CCR can help get your money back
18 Apr 2017 | Article

Five ways CCR can help get your money back

So many hours are wasted chasing the wrong debtors who never pay up. Comprehensive Credit Reporting (CCR) gives you greater power than ever before to determine how and where to focus your collections efforts.

By knowing more about your debtor’s current credit situation, beyond what your own files tell you, you can significantly boost your chances of getting your money back from day one.

 

New insights now available

With CCR, collections teams can see a customer’s repayment history at other lenders. Armed with this knowledge, collectors can better diagnose if they are likely to self-cure or if they are struggling more severely.

If you choose to case manage those unlikely to get back-up-to-date on their own, you can direct resources to where they’ll have the biggest impact. Conversely, for those showing no sign of recovery, you can sell the debt early to reduce losses.

By being selective about which accounts are managed in-house, which are outsourced to specialist companies, and which are sold, you can increase your return on investment.

Using CCR data, skip tracing also becomes far more effective. More accurate and up-to-date contact details are available with CCR because credit providers confirm identity details for each account every time they submit a monthly repayment.

 

Five collections strategies that can be improved with CCR include:

One-off behaviour: If you observe customers are up to date across their other accounts you may decide to use soft-contact strategies, on the basis they may self-cure quickly and easily.

Low-contact customer: You may have a minority relationship with customers and if they are experiencing difficulties with their other providers you may choose to be more aggressive.

Consolidation: You may observe that you are the major creditor and choose to investigate ways to consolidate customer exposure in order to make them more likely to be able to meet their commitments.

Reorganisation: You may identify that a customer's overall levels of credit are low and so focus on rearranging their payment schedule to allow them to get back up to date.

Escalation: You may observe that customers are in trouble with a number of credit providers and opt to use your strongest collections strategies.

 

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