What to do when 'late late' is the only option in collections
It’s always sad to say goodbye, but as we come to the last post in our Collections Common Timelines series, we hope you’ve enjoyed the journey.Our mission was to share with interested parties the data and anecdotal evidence we’ve been presented with concerning the 6 stages of the collections process:
Short on time and want to read all 6 phases at your convenience? To download the Collections Timelines Whitepaper
At 120 days plus we are in the final stage of the collections process and there are 4 main options available:
LegalThrough our legal service AJJB, we understand that once all avenues have been exhausted the only way to secure a client’s position is to issue proceedings through the court in a cost-effective way. We utilise scorecards alongside a bespoke internal system and Credit Reference Agency data to measure an account’s suitability score. Those that fit the criteria then go through a hybrid collections strategy which includes stronger communication via our various contact channels and a Letter Before Claim from our solicitors. Although we are into the final process of debt recovery our procedural content is still designed to rehabilitate our client’s customers so they can avoid the need for legal action in the form of a County Court Claim. The customers are notified during of every step of the process and educated about the consequences of non-payment.
There are two big myths about legal action:
- That it can damage an organisation’s brand: in our experience customers are completely aware of the situation they find themselves in and understand it is their responsibility to find a solution; which we offer. As long as the correct and compliant procedures have been followed throughout the process, we’ve found very little issues with this course of action.
- The second myth is that legal costs too much money with little or no net return. Our bespoke internal system aligned with the Credit Reference Agency data allows us to utilise a very successful scorecard system. Once the numbers have been ‘crunched’ we can accurately inform our clients of their expected outcomes and ROI. We also have a range of no-win no-fee charging models meaning clients are guaranteed a positive net result.