Posts Tagged ‘financial collection agency’

Three Ideas Management In The Collections Industry Should Bear In Mind To Maximize Profit Part One

Monday, July 19th, 2010

The economy is suffering, and yet, Americans still refuse to hold off on spending until they can buy and choose instead to take on more and more debt. This raises some interesting issues for the collection industry. For collection companies, business is booming. There is more debt than ever, just waiting to be collected.

Yet carrying through on their job to collect that debt is proving to be harder for debt collection agencies than it ever was before. Either people simply do not have the money to pay back their debt, or the money they do have is to cover their bare essentials: food, shelter, and a car. The local creditor isn’t going to come in and take the average debtor’s house, so creditors are being placed on the back burners for now.

Management in the collection industry needs to keep three ideas that I write about in this three part series in mind. The first idea is to network, stay “teched up” and always look for ways to improve the current debt collection team. The second idea is to improve the relationships that they have with their debtors, and the third idea is that management needs to remember to be nice to their star employees.

In the business environment, connections are crucial, and isn’t the internet just one World Wide Web of potential connections? Get online and do that networking. Talk to other collection companies, creditors that you might potentially do business with, and while you are on that computer, always watch out for the next big trend in collections. Some debt collection agencies are considering texting debtors to let them know that their account is being sent to collections.

In my humble opinion (and hey, what do I know? I just get paid to write about this for hours a week) the collections industry should lobby to get the Fair Debt Collection Practices Act updated. The thing was written in the 1970s, is outdated and obviously doesn’t account for cell phones. A lot of debt collection agencies realize that younger people would rather make payments online and have set up systems to do just that, which is a good idea. Since the economy has gotten so awful, older people have gone in to debt also, and accommodations should be made for them as well, making it more easy for them to pay. If you want a debtor to pay, make it easier for them to do so. It’s as simple as that. To Be Continued In Parts Two And Three

Mallory Megan works for http://www.rapidrecoverysolution.com and writes articles on medical collection agencies Unique version for reprint here: Three Ideas Management In The Collections Industry Should Bear In Mind To Maximize Profit Part One.

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How To Conduct Your Job Interview To Find The Perfect New Hire

Monday, July 19th, 2010

In the middle of an American economic crisis, one industry seems to be booming: the collection industry! That’s right, according to the most current research more than fifty five percent of the participating collection companies are planning to add to the amount of staff that they already employ this fiscal year.

Any manager going through the hiring process is aware of the time and aggravation that comes with finding the right fit for the job, especially a job like a debt collector where attention to detail and motivation are a necessity. In the collections industry, it is crucial that you hire the correct person. A collection agent who is too laid back is not going to collect; one who is too high strung might end up getting your agency sued. Hiring the wrong candidate not only leads to an unhappy new hire with the capacity to harm the credibility of the hiring manager and even the company, but it also chews up management time that it takes to train. Time and money that could have been put into training the right hire in the first place.

So how should a hiring manager go about conducting interviews to find the best fit? Interviewing styles will vary from business to business. Generally, a number of interviews will involve asking about a candidate’s job history. But if a candidate has an idea of what you are looking for, and they are good at selling you their experience, you may wind up hiring the person who is not best suited for the specific job you have in mind. Thus, the most crucial idea that any potential employer should keep in mind during an interview is to get the candidate to be extremely specific. Studies have shown that it is more effective to go over less material very thoroughly than to have a general sense of everywhere that the candidate has been. It is important not to simply accept their first answer as complete- probe for more details.

In the collection industry, behavioral questions have been proven to be helpful. These are based on the idea that past actions may predict behavior in the future. When it is important that you need to be able to reasonably predict how a new hire will react to any sort of stimulus on the job because the credibility of your agency is at stake, questions such as “give me an example of,” or “what are your best and worst personality traits” can be helpful. Ask the candidate how they generally handle stress. You and I know they are going to be dealing with it after all.

Finally, look for new hires who feel passion about the things that they do. Try to look under the surface to determine if there is an authentic depth underneath what the candidate is claiming at the interview. Attempt to question the candidate about life goals, hobbies, spare time, etc. It might be unorthodox, but searching beyond qualifications can help you get a hold of some of the details that will give you an idea of how a candidate will approach a job and what their work habits are like.

Mallory Megan works for Rapid Recovery Solution and writes articles on national collection agencies Free reprint avaialable from: How To Conduct Your Job Interview To Find The Perfect New Hire.

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What Happens When A Stock Market Crashes?

Saturday, July 10th, 2010

A stock market crash can be summed up as a situation where share prices of stock listed on the stock exchanges plummet. Although there are a number of economic factors that will cause a stock market crash, a reason for stock market crashes is also the investing public’s loss of confidence in the economy and mass panic.

Oftentimes, the results of stock market crashes can be brutal for a country’s economy. There have been notorious stock market crashes that resulted in the loss of billions of dollars, and as an increasing number of people become involved in the stock market, crashes have touched more lives recently.

One of the most infamous stock market crashes began on October 24, 1929 and would be come to be known as Black Thursday. The Dow Jones Industrial lost fifty percent during this stock market crash, setting off the beginning of the Great Depression. Another famous crash happened on October 19, 1987, also known as Black Monday. The crash started in Hong Kong but quickly blazed around the world.

By the end of October, stock markets in Hong Kong had fallen 45.5%, the United States had fallen 22.68%, and Australia, Spain, the United Kingdom and Canada suffered from intense ramifications as well. In stock market history, this marked the largest one day percentage decline – the Dow Jones fell by 22.6% in one day.

Nothing could seem to explain the crash in 1987. The main events and news at the time could not predict the disaster and any obvious reasons for the collapse could not be identified. This crash created many questions about the theories and assumptions of modern economics. After the crash, computer systems were upgraded in the stock exchanges to handle larger trading volumes more efficiently. The New York Stock Exchange also introduced the concept of a circuit breaker, which halts trading if the Dow declines a prescribed number of points for a prescribed amount of time.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. Unique version for reprint here: What Happens When A Stock Market Crashes?.

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Tips On Knowing Your Customer

Saturday, February 20th, 2010

Running a business can be trying. Oftentimes it is necessary to call upon a debt collection agency for help collecting money that is owed. However, if companies take a stance of prevention, they may not need to use the assistance of a third party collections agency. Knowing the client or customer can be extremely useful for filtering out potential problems.

First, a business should figure out the full legal name of the client that it wants to do business with. The business structure should be known. Is it a corporation or a partnership? The names, titles and addresses of the principal members should be collected.

It is crucial to determine the federal employer tax identification number. The ship to address, telephone number, name, fax number and email address of the main contact should be known as well. In addition, the bill to address, fax number and telephone number of the accounts payable contact is a good piece of information to know. Individuals who are authorized to submit orders should be listed.

Bank references should be inquired about. What is the banks name? The branch address, fax and telephone numbers, account types, account numbers and dates opened can be useful information. The name of the bank representative should be collected as well.

Finally, the conditions and terms of sale should be acknowledged and accepted by the customer’s signature. The client’s signature, printed name, date of signing and title should be collected, and always have the company’s attorney look over any documents before use.

Know the customer’s credit history and keep good communication via phone calls or personal visits. Keep a timely delivery of goods and services, and up to date records and accounts receivable information. Send out memos and letters to remind the client about the money owed and keep them up to date.

Join an industry credit group and actively participate. It is important to know the laws in the state where the company is doing business regarding collections and business proposals. To protect the integrity of the company, be sure to collect references. Bank references, including the bank name, branch, account type, account number and trade references are important to know. Collect at least three trade references that include the name, address, telephone number and email addresses.

Mallory McGuinness is employed by a debt collection company. Also she does articlesabout finance and business, consumer spending and debt collection.

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Wait. How Long Is This Going To Be On My Credit Report? Part 1

Thursday, February 4th, 2010

Your credit history. It could be your best friend, or your worst enemy. Most of the time it’s like a nosy mother in law coming to visit. You know that she’s coming, and that’s always bad news, but you are too afraid to ask or even consider how long she will be staying. Even though that was the worst analogy ever, read on to see how long negative marks stay on your credit history!

In my personal opinion, there are two records that really count in this life. Your criminal record and your financial record. Unlike your criminal record which will hover over your head for a very long time, thankfully, your credit report and scores are not permanent. But how long can these negative records exist on file?

First, errors in your credit report will be removed immediately. It you find a mistake, or a negative account that doesn’t belong to you, contact the credit reporting agency and the creditor. You should be able to have the negative account removed within 180 days.

Anytime your credit report is pulled at your request, an inquiry is put on your report. An occasional inquiry once in a while couldn’t hurt, but if you have placed a large number of inquiries within a short time period, this generally lets prospective creditors know that you need the dough and you need it fast. The bottom line is that the more inquiries that show up on your report, the lower your score will drop. These will usually last only up to two years.

But here’s the 411 about inquiries. Not all inquires will be bad for your credit score. Soft inquiries, like when you get your credit score, or when companies check your credit for purposes of making unsolicited credit offers do not hurt it. When you apply for a credit card, the creditor pulls your credit report that will result in what is a hard inquiry. This might potentially lower your score.

Mallory Megan works for a debt collection company. She also does pieceson consumer spending, business and finance, and debt collection. Get a totally unique version of this article from our article submission service

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