Receivable/Accounts - Information for Credit and Collection Issues

Tuesday, January 12, 2021

Collection File Ownership Clarified

How a collection agency handles its account ownership directly impacts the agency and its employees. Let me explain further.

When an unpaid file comes into an agency, it is usually directed to a collector. That is added to their file of accounts they are working to get paid. We all know how our own personal and professional calls aren’t always returned. The same happens for collectors. Their daily efforts consistently include unreturned calls and changed phone numbers, for example. Their efforts are important, however, because it also impacts their performance.

But, sometimes a new unpaid file isn’t directed to anyone or a large number of files comes in that one person alone can’t manage under their account. When the collector isn’t clear, the payment received is often credited in our industry to the “house.” Meaning no specific collection agent receives credit for a commission or bonus. Instead the “house” or the company benefits.

We don't work that way.

Instead, we have created a algorithmn that presents odds to each person who has had a part of the success for that specific client portfolio. That means we have found a way to give credit to our collectors for their hard work. You should too. It impacts more than just their commission or monthly bonus. It also affects your turnover and company morale. It is just one more way to provide the resources and recognition for your collection team because without them, you likely wouldn't have much of a job or a business.

At the essence of this all, however, is the importance of having an internal system in place for organizing and managing your collection files. It could be like the days of old with index cards or using electronic resources such as databases as well as maintaining timeframes within these collection files. We know that for collections to be successful in a perfect world, once a file comes in, creating a sense of urgency is what makes the payment appear. Case closed. Payments credited to the account and to the collector.

We know that isn't how reality works in this industry.

Instead, a system needs to be in place to allow for extended time periods and efforts to receive payments. This means a good workflow is needed. One that makes sense to your business and your collectors. We are always willing to share what we have found to work for us. Feel free to contact me to talk more about "house" payments in our industry, our algorithms to recognize our team members, software options and any other workflow management techniques.

All the best,

Kingston Data & Credit
Cambridge, Ontario
1-888-908-3151, Ext. 3003

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