CCR2 Technology
Both for today and also for the future
Technology can help a collections agency to remain compliant, and look to future needs
James Smith NEXUM Software
jsmith@nexumsoftware.com
Collection agencies – and I would include third-party businesses managing legal recoveries in this – have three main challenges: complying with the rules set down by the Financial Conduct Authority (FCA) and other industry regulatory bodies, complying with client performance and regulatory requirements, and maintaining their business as profitable and sustainable. In today’s industry, technology is at the heart of overcoming each of these challenges.
Complying to regulations The FCA and Solicitors Regulation Authority regulations, civil procedure rules and rules covering High Court action and enforcement, all apply to agencies that are either managing consumer collections or issuing legal action through the courts. Broadly speaking, all regulations typically
cover ‘what’ you can and cannot do, ‘how’ you should do it, together with the procedures you should must have in place to prevent non-compliance. All of this is aimed at protecting those you
are acting against, those you are acting for, and, oddly enough, your own organisation. What I love about the various rules and
regulations is that they are not open to interpretation, all following clearly defined processes and procedures, with prescribed forms, calculations, and limits. Why do I love them? Because NEXUM,
as clever technology, can map its powerful decision-based workflow engine against them, removing huge amounts of, otherwise needed, manual administration, which represents huge savings in people costs.
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They may want certain reports triggered on certain dates, they might want their bill printed in colour and folded in half, with all payments to client summarised in one column, while collections charges are listed in detail against each account – with a copy sent as a CSV file for good measure
Having collection and recovery strategies
aimed at optimising successful collections that also incorporate monitoring against regulatory compliance is very exciting.
Client requirements So, let us assume that you are using NEXUM and you have decision-based workflows, incorporating compliance checks, actioning accounts; what could possibly add to your workload? Well, the client could! You know the best treatment path and
collections approach that will yield the best result, but your client requires feedback at certain stages of the collections process. If a complaint is made, they may require
you to inform them within 12 hours. If the cost of recovery at account level exceeds a given amount, they might want you to request approval before proceeding. They may want certain reports triggered
on certain dates, they might want their bill printed in colour and folded in half, with all payments to client summarised in one column, while collections charges are listed in detail against each account – with a copy sent as a CSV file for good measure. Before you realise it, the cost and effort
involved in catering to the client’s unique requirements represents hours of your time if you are to satisfy them. The great news is NEXUM can automate all of this.
Maintaining a profitable business Many years ago, when I was involved in collections, the main focus was collecting cash and making a profit, I do not believe
July 2017
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