Consumer accounts receivable management and consumer credit services cover just about everything that engages in any extension of credit or a point of sale transaction. Types of consumer credit include utility, financial, telecommunications, mortgages, automobile financing, credit cards, personal loans, student loans, retail credit, and insurance. Basically, anything involving a transaction where there is an exchange of product or service for money by an individual and not a business. Consumer debt by legal definition is a debt incurred by a consumer primarily for personal, family or household purposes and related to a consumer financial product or service.
Every company that extends credit at some point will experience slow-pay and non-pay accounts. Some challenges to collecting range from the consumer getting over extended and not having enough money to pay all of their obligations, to not being able to locate the customer, to not being able to contact the customer but know where they are. Due to technology, it’s become easy for anyone to avoid being contacted for any reason. It’s easy for a consumer to avoid being confronted about their unpaid accounts.
In recent years, it has become increasingly easy for consumers to borrow and finance things they may not have been able to do in the past. Buying on credit is so easy now. Because of this, there are many people who have accumulated a lot of personal debt and are not able to pay. They may not be employed or were unemployed and just now back to work, experienced sickness, divorce or some other event that has caused their finances to suffer. Many are high risk borrowers or identified as financially vulnerable customers. The laws and rules that apply to consumer credit have made things more favorable for the consumer and less favorable for the creditor. The ability to run up massive amounts of credit debt and merely file bankruptcy and have it all discharged has become very easy.
In-house collection processes are necessary for most companies as they can recover most all of the money they are owed, but there is likely 2%-6% in net charge offs leftover. These small percentages can actually represent millions of dollars if a business is large and doing hundreds of millions to several billion in sales revenue.
Most businesses in the consumer credit markets need to partner with an appropriate and accredited Third-Party company. Southwest Recovery is a nationally recognized Third-Party receivables management company with experience and success in nearly all consumer credit markets since 2004. Our teams of professionals have no less than 10 years of consumer credit collection experience and possess the most sophisticated industry technologies available. The ability to locate and contact consumers quickly, find bankruptcy and deceased account holders, and utilize predictive score models that indicate the likelihood of a consumer paying their account.
We can provide a secure Client Portal for our clients that can be used to submit account information, documents, report payments and view real-time account activity on assigned accounts. Unpaid accounts are reported to the 3 consumer credit reporting agencies; Experian, Equifax, and Transunion.
We are governed by the Fair Debt Collection Practices Act (FDCPA), CFPB (Consumer Financial Protection Bureau), and the Fair Credit Reporting Act (FCRA), and are 20 year members of the American Collectors Association (ACA).