Tips used by every Debt Recovery Agency for Successful Debt Recovery NSW

by Andrew Thomas Debt Recovery Rules and Limitations Related

Covid-19 pandemic has put a really bad effect on the financial status of almost every country and industry in the world. The banking sector has not remained unaffected and now as we reopen after pandemic, this industry in particular in more aggressive in its operations. One of its operations is loan and debt recovery NSW and for this, they are highly proactive in contacting debtors, chasing, tracing them, trying to find out their whereabouts and recover outstanding amounts from them. For this, they are not just using the in-house debt collection and recovery expertise, but at the same time, availing debt recovery services from third party companies for really quick and fast debt recovery.

Some tips related to the same have been helping them a lot and here in this article, we will be discussing the top ones.

Identify The Vulnerable

Experts from every top-rated debt recovery agency use this modus operandi of selecting the debtors that they think are going to cause trouble in the future and they do this, based on different data and information regarding them. They use different data and information that gives them a clear indication of how a particular debtor is going to behave. This information is mainly related to how reliant on credit the customer is, card utilization, renewal of UPLs. Then, there is also information on heir financial morality and so on that gives them a real insight on how the debtor has behaved till now and what to expect out in the future.

Better Assess Affordability

These professionals offering debt recovery services also triage the assessment level and based on this, they try and find out the level of assessment needed on a particular debtor. For this, a very useful step they take is that dig deeper in the household balance sheets as well as the cash flow. Apart from this, as mentioned above, more data driven debt recovery NSW approach is what they rely upon and for this, they try and fetch out as much data as possible from every possible source other than credit score that has not remained a very reliable source in the post Covid-19 pandemic phase.

Data To Manage Performance And Regulations

The data that we have been stressing upon includes so many things that help debt recovery services professionals, find out the real reasons behind debtors delaying in paying the outstanding debts.

The additional data to capture in the context of COVID-19 includes:

• Reasons for hardship: Unemployed, furlough/reduced income, medical, quarantined

• Type of relief applied: Payment holiday, reduced instalment – what relief the customer had and when did it stop

• Industry sector, so you can estimate the need for prolongation

Here too though, the communication remains the biggest factor and something that debt recovery professionals engage continuously, particularly with those flagged as vulnerable debtors.

Following The Best Engagement Strategy

Another strategy that they use is following tailor made debt collection approach with different clients based on their type of debts and also the reason behind the delay. Apart from this, there is one omnichannel approach that involves contacting them on a regular basis and reminding them regarding outstanding debts. Based on the debtor approach, you can even change your contact strategies quickly to enable customers to auto-resolve on omnichannel platforms including auto voice, iSMS/WhatsApp, digital direct API, email, mobile app, online or through edocs.