In this third post of the Life of Managing a Portfolio series, we’ll discuss Account Placements and Tracking using a mock portfolio of accounts to illustrate the process.

ACCOUNT PLACEMENTS AND TRACKING

 

PLACEMENTS

As mentioned in the previous post, RDS used our account decisioning tool, Paymetrix AD, to segment the portfolio into different treatment channels. Paymetrix AI was then applied to the portfolio to search for assets and the following treatments and projections were reached:

OTHER TREATMENTS

6% of the portfolio, 100K estimated collections

6% of the portfolio has been projected to receive Other treatments. These accounts (bankruptcy or deceased, for example) must receive special handling according to federal law and regulations that are governed by the jurisdiction in which the consumer resides. The client makes the decision to process these accounts using their own methods.

NON-LITIGATION TREATMENTS

66% of the portfolio, 3M estimated collections

66% of the portfolio has been projected to receive Non-Litigation treatments. Our rainfall model shows that treating these accounts with Litigation would not be cost-effective. The client will utilize an in-house call center and third-party collection agencies to work the accounts.

LITIGATION TREATMENTS

28% of the portfolio, 8M estimated collections

The remaining 28% of the portfolio has been projected for Litigation, which is projected to be cost-effective for these accounts, despite the additional costs necessary for filing suit. Our focus now turns to tracking these accounts throughout the life of the Litigation process.

ATTORNEY NETWORK AND LIAISON TEAM

Litigation accounts are placed with our nation-wide Attorney Network. An internal Liaison Team with more than a decade of experience communicates with the network attorneys to help address their needs and ensure each account progresses through the various phases of litigation. The attorneys and liaisons work together to retrieve account documents, answer account level questions, address account changes, prepare documents, establish payment plans, locate consumers, domesticate judgments, and much more. The team also ensures that the attorneys are moving forward with asset execution and facilitates feedback if an asset cannot be executed upon.

Now that we’ve explained Account Placements and Tracking, it is time to discuss the Litigation Path and Judgment Maintenance. Stay tuned for Post 4!

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