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Debt Collection
Debt Collection
An
organization that specializes in debt collection is known as a collection agency or debt collector.[1] Most
collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total
amount owed.
Debt recovery and debt collection are similar terms with one small, but very important distinction. The
difference is who is trying to retrieve a debt.
Debt collection is a creditor’s attempt to recover consumer credit and loans that have not been paid
back by a customer.
In finance the term recovery refers to collection of amount due. The normally recovery depends on the
purpose, time and condition, business running process etc.
Normally loan amount will be recovered on installment basis. The manager can fix installment period on
the basis of nature of their business.
Example:
The repayment period can extend up as per the STC act in exceptional cases, normally bank recover the
loan amount from customer, easily do not give the trouble to them.
debt recovery strategies
Obtain up-to-date contact information for your most hard-to-locate debtors. Experian frequently
refreshes its extensive databases of consumer and commercial information, enabling you to locate
elusive debtors, make contact and collect unpaid debt.
Improve collection efforts and increase your accounts receivable by identifying accounts with the
highest payment potential, analyzing industry trends and testing new strategies. Experian’s advanced
scoring and segmentation tools arm you with complete portfolio intelligence, while our ongoing
portfolio monitoring helps boost debt recovery.
Know when customers who’ve gone into arrears become solvent. We monitor your debtor accounts and
let you know when a customer’s ability to pay has improved so you can immediately return to working
the account and collect the unpaid balance.
A comprehensive collection system is critical to keeping your company solvent. PowerCurve® Collections
is a unified debt management system that includes data connectivity, decisioning, workflow, and self-
service capabilities that can be managed by business users. The result is a more effective, customer-
focused collections process that turns even hard to find and difficult debtors into valuable customers
while increasing recoveries and reducing costs.
eResolve
Virtual debt resolution and negotiation platform. Need an easier way to collect debt? Move your
collection practice into the digital age by providing an online platform where consumers can negotiate
and pay their past-due accounts online via their computer, tablet or smartphone.