Tag Archives: Collections

Risk & Compliance What’s Happening While We Wait for TCPA Reform?

TCPA Reform in 2018?
Dec122017

The election of a new administration along with leadership changes at the Federal Communications Commission (FCC) provided new hope for a broad group of industry and nonprofit organizations who have long been advocating for changes to the Telephone Consumer Protection Act (TCPA). The TCPA reform effort is expected to commence after the United States Court of Appeals for the District of Columbia rules on the challenge (led by ACA International – the Association of Credit and Collection Professionals – and others) to the FCC’s July 2015 Declaratory Ruling and Order. The FCC’s 2015 action is viewed by many as creating additional uncertainty in an area that has witnessed the chilling of the use of modern communications technology.  Nearly 14 months ago, the DC Circuit Court heard oral arguments on this case. I have spoken to legal experts who have reviewed hundreds of DC Circuit cases and they all assert that... [Read More]

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Collections & Recovery Should You Open Your Wallet for Omnichannel Collections?

Woman in call centre
Sep272017

In debt management, everything comes down to money. Even the collections systems you use are about stretching that last dollar or pound or euro until it snaps. However, if you don’t know what’s on the market today, you don’t know what you’re missing. You might be missing the opportunity to make a dramatic improvement in your performance and productivity, without spending a whole ton of money. In my last post, I pointed out ways that you’re probably leaving money on the table in your approach to IFRS 9. Now I’m going to repeat myself. If you spend all your time trying to move cap ex into op ex, or substantially reduce op ex, you’re probably leaving money on the table. The Dreaded Omnichannel Let me give you an example, and I’m sorry to be so obvious, but yes, it’s one of ours. Our Customer Communication Services for Collections isn’t a... [Read More]

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Risk & Compliance FICO Data: Have Premium Cards Lost Their Edge in the UK?

Gold card
Sep182017

Are Premium cards becoming harder to distinguish from Standard Classic cards? Is there still a place for them in the market? Traditionally, Premium* cards (gold and platinum) were perceived as reserved for the lowest-risk, best-quality accounts, and so had higher limits. Spend was thought to be greater, though a larger proportion of full-balance payers made them less profitable than Classic cards. However, over time the FICO Benchmark Reporting Service data for the UK reveals that the Premium customer is changing and so is the performance, particularly of the more mature accounts. In July 2017 25% of the accounts in the FICO Benchmark Reporting Service were Premium accounts, along with 25% of balances. With the exception of New accounts (<12 months on book), which were 20% of accounts and 20.4% of balances, Established (1-5 years on book) and Veteran (5+ years on book) accounts were about 25% of the relevant vintage population in the service. Common Beliefs... [Read More]

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Collections & Recovery Collectors: Don’t Let IFRS 9 Blindfold You

IFRS 9 on blindfold
Aug302017

There’s a clear pecking order when it comes to the IFRS 9 accounting standard that goes into effect in January. It’s an accounting standard, not a piece of banking regulation, so the hierarchy is Finance, Risk and then Collections. This makes sense, but for debt managers it will cause problems. It’s likely that many debt managers will be blind next year on how they can influence impairments. Here’s how things will happen. Your Finance team will talk to your organization’s accounting firm and auditors, and they will agree how IFRS 9 should be implemented. They will probably work your Risk department when it comes to preparing the predictive models that are required to determine expected loss under IFRS 9. Once that’s done, the rules for your organization will be binding. It’s unlikely that the Collections team will be part of the process. And if you’re in Collections, you might think... [Read More]

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Collections & Recovery Collections & Regulations: Are You Leaving Money on the Table?

Stop sign
Jul262017

Debt collectors, like everyone else in financial services, are drowning in regulatory changes. In my last posts I’ve discussed IFRS 9, GDPR and, to a lesser extent, the basket of fun known as PSD2. One of the natural human responses to change is to narrow one’s focus to the necessary task at hand and push everything else away. Just focus on ticking the boxes, and ignore the cries to rethink the way we’re doing business. Sweat what we’ve got and don’t spend any money. That’s what I’m hearing at many collection shops when the conversation turns to optimization or advanced analytics. There’s a cost to this approach, though. Collectors are in danger of leaving money — a lot of money — on the table. The IFRS 9 Bucket Challenge Here’s the first reason: Impairment provisions and losses. This is what I have dubbed the IFRS 9 Bucket Challenge. I wrote... [Read More]

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