Our previous post described how Legal Inventory Management (LIM) and Judgment Maintenance work together to maximize the revenue potential of Litigation accounts. In this fifth and last post of the Life of Managing a Portfolio series, we’ll discuss Final Results of the mock portfolio.
5. FINAL RESULTS
Series Wrap-Up
We have come to the end of our series, Life of Managing a Portfolio. To recap, a client approached Recovery Decision Science (RDS) requesting both our analytical and managing services. The first service, Paymetrix Account Decisioning (AD), evaluated the portfolio and proposed the following three Account Level Treatments and corresponding return on investment (ROI):
- Non-Litigation: 65% of accounts predicted to return $3M
- Litigation: 30% of accounts predicted to return $8.3M
- Other: 5% of accounts predicted to return $100K
Part 2: Account Level Treatments
The Client elected to work accounts in the Non-Litigation and Other treatment buckets in-house. RDS then focused efforts on the accounts targeted for Litigation using Paymetrix Asset Identification (AI). Once asset searching was complete, Paymetrix AD revised its projections:
- Non-Litigation: 66% of accounts predicted to return $3.1M
- Litigation: 28% of accounts predicted to return $8.0M
- Other: 6% of accounts predicted to return $115K
Next, Litigation accounts were placed with our nation-wide Attorney Network and our internal Liaison Team worked with the network to address attorney requests and ensure timely progression of the accounts through the various phases of Litigation.
Part 4: Litigation and Judgment Maintenance
The Liaison Team tracked the accounts from pre-judgment through post judgment asset execution. Our proprietary Legal Inventory Management (LIM) system allows the Liaison Team to identify accounts that have fallen outside of expected timing buckets so that they can take proactive measures with the Attorney Network to keep accounts moving forward.
Final Results – 5 years later
Let’s fast forward five years and review the performance of this portfolio:
- Non-Litigation returned $3.25M
- Litigation returned $8.5M
- Other returned $80K
Back in the first post we explained the purpose of evaluating a portfolio to determine its future value and the ROI we should expect using various account treatments. The results above show that the RDS projections were within range and actually above goal for the Litigation and Non-Litigation treatments. How do we provide this level of accuracy? Simply put, RDS has decades of collection and litigation data to draw upon. This data, paired with our experienced analytics team, gives you a level of insight unsurpassed in the industry.
The processes we’ve outlined in this blog series are not just a one and done activity. Portfolios are tracked and held accountable for their performance down to the single account level. We do not leave stones unturned. If an account isn’t performing or a source of assets is not providing the desired results, we work to find a new asset or a better source of asset information. We have a culture of continuous improvement.
This is what we do day in and day out, and it is what sets our performance apart.
The visualization below summarizes Paymetrix AD projections verses the actual results for each Account Level Treatment.
$ Account Level Treatment Actuals to Projection
This graph shows projections verses actuals for each Account Level Treatment. The black line represents the Paymetrix AD projection and the colored bar represent the actual ROI.
% Account Level Treatment Actuals to Projection
This graph shows the projections to actuals as a percentage.
Account Level Treatment Actuals to Projection by State
This map shows actuals to projections by state. See the scale in the map window. The darker blue states had the most accurate projections, while the orange states were the least accurate.
Thank you for following along in our series Life of Managing a Portfolio. To learn how to receive Recovery Decision Science on your current debt portfolios, please contact Brandy Reardon at 513-246-6144.
