Articles

  • Collections in consumer lending

    Collections in consumer lending are the coordinated actions used to recover overdue repayments. These actions include SMS, in-app messages, calls, letters, visits, and, when needed, legal steps. This piece explains the typical stages, including pre-collection, soft, early, late, and legal, their usual timing around due dates, and the trade-offs between in-house collections and outsourcing to third-party agencies.

    Published on:: 2024-08-10 18:35:48

  • Improving Debt Recovery with Practical Tools and Strategies - Decisimo

    This article covers practical tools and strategies to improve debt recovery, including collection platforms, predictive analytics, AI-based prioritization, mobile engagement, and social channels. It explains how to segment customers, automate outreach, and measure results to recover more outstanding debt at lower cost.

    Published on:: 2024-08-10 18:35:48

  • Debt Recovery Hub

    Practical guidance and resources for automating decision tasks across consumer lending collections, from pre-collection segmentation and agent scripts to outsourcing and debt sales. This hub covers tools, communication strategies, key metrics, and decision logic methods, including AI and champion-challenger testing, to improve recovery workflows and collections efficiency.

    Published on:: 2024-08-10 18:35:48

  • From Contract to Collection: Selling Debts in Consumer Finance - Decisimo

    Selling debt portfolios is a standard part of consumer finance, but the process only works when the legal, contractual, and documentation steps are clear. This article explains how debt sales are structured, what compliance checks matter, and how portfolio pricing is typically assessed.

    Published on:: 2024-08-10 18:35:48

  • Estimating the Costs of the Collections Process for a Portfolio Acquisition

    Estimating collections costs for a portfolio acquisition starts with the inputs that matter: historic recovery rates, recovery timelines, and operating costs by channel. This article explains how to use those inputs to estimate future recovery, price a portfolio correctly, and assess the main factors that shape the collections process.

    Published on:: 2024-08-10 18:35:48

  • How Other Lending Processes Can Hurt Collections Efficiency - Decisimo -

    Collections efficiency drops when upstream lending processes create inaccurate or incomplete customer data, or when incentives favor volume over data quality. This article explains how sales and underwriting practices, from poor contact capture to weak verification methods such as OTPs, phone checks, and third-party data, reduce collections performance and where to focus operational fixes.

    Published on:: 2024-08-10 18:35:48

  • Outsourcing vs. Insourcing Debt Collection: Key Considerations and Potential Impacts

    Choosing between insourcing and outsourcing debt collection comes down to control, cost, expertise, and risk. This article breaks down the key tradeoffs, from debt type and recovery economics to brand impact and operational flexibility, so you can decide which approach fits your business.

    Published on:: 2024-08-10 18:35:48

  • Key Metrics and Steps to Improve Collection Efficiency

    Collections protects cash flow by turning past-due invoices into cash and reducing bad debt. This article covers the key KPIs, including recovery rate, average days to collect, and cost of collections, and outlines practical steps to measure, monitor, and improve collection efficiency.

    Published on:: 2024-08-10 18:35:48

  • Handling Objections in Debt Collection: Strategies and Practical Scripts

    Objections in debt collection are common. The response should be consistent, clear, and documented. This article covers practical ways to handle debtor concerns, from fee disputes and payment questions to identity checks and objections to call-backs, with scripts you can adapt for real conversations.

    Published on:: 2024-08-10 18:35:48

  • Why segmented pre-collection activity matters for lending businesses

    Segmented pre-collection helps lending businesses focus on accounts that need attention before they become delinquent. This article explains what pre-collection is, why segmentation matters, and the main ways lenders can use it to improve recovery without unnecessary contact with borrowers who are likely to pay on time.

    Published on:: 2024-08-10 18:35:48