How to go about pursuing delinquent debt is a tough thing to try to determine, especially when it comes to bank debt collection. There are so many ways for debtors to avoid paying bank debt. However, outsourcing bank debt collection pursuits at the right time of year can lead to excellent recovery results.
Tax season runs from February through April, and while some Americans must pay into the government, a far greater percentage receives tax refunds. Most are not thrilled at the idea of paying hefty check cashing sums and will simply deposit their return in a bank account.
This means that bank debt collection of overdrafts and overdrawn accounts is automatically decreased. However, consider the number of other delinquent accounts that can be cashed out with large tax returns.
Keep in mind that many consumers with bad debt have felt harassed by collection calls for a great deal of time, and the refund check affords them the opportunity to get some of the collection agencies off their backs.
Many people intend to use tax refunds to pay off outstanding bills anyway, which leads to eagerness to end bank debt collection attempts. The fastest way for a bank to profit from this desire to rectify accounts is to sell their delinquent debt portfolios to collection agencies.
The reason banks should pay attention to this particular time of year is that collection agencies report a higher recovery rate of debt from February through April every year. Because they are settling a greater percentage of accounts, they are typically willing to pay a greater sum to purchase the delinquent debt, which the banks typically sell for a fraction of the actual amount owed by the debtor. This means larger sums recovered by the bank that can be invested elsewhere for greater gain.
Consumers, too, benefit from this because they can often settle for lower payment amounts with the available cash. For example, if a debt collection agency is requesting a payment of $500 while the consumer has $450 in cash immediately available to be directly drafted from their bank account, it is likely to be accepted as payment in full.
Working smart, not hard, is the key to success in any venture, and bank debt collection is no different. Outsourcing recovery of delinquent debt early in the year leads to profit for all parties involved.
Tax season runs from February through April, and while some Americans must pay into the government, a far greater percentage receives tax refunds. Most are not thrilled at the idea of paying hefty check cashing sums and will simply deposit their return in a bank account.
This means that bank debt collection of overdrafts and overdrawn accounts is automatically decreased. However, consider the number of other delinquent accounts that can be cashed out with large tax returns.
Keep in mind that many consumers with bad debt have felt harassed by collection calls for a great deal of time, and the refund check affords them the opportunity to get some of the collection agencies off their backs.
Many people intend to use tax refunds to pay off outstanding bills anyway, which leads to eagerness to end bank debt collection attempts. The fastest way for a bank to profit from this desire to rectify accounts is to sell their delinquent debt portfolios to collection agencies.
The reason banks should pay attention to this particular time of year is that collection agencies report a higher recovery rate of debt from February through April every year. Because they are settling a greater percentage of accounts, they are typically willing to pay a greater sum to purchase the delinquent debt, which the banks typically sell for a fraction of the actual amount owed by the debtor. This means larger sums recovered by the bank that can be invested elsewhere for greater gain.
Consumers, too, benefit from this because they can often settle for lower payment amounts with the available cash. For example, if a debt collection agency is requesting a payment of $500 while the consumer has $450 in cash immediately available to be directly drafted from their bank account, it is likely to be accepted as payment in full.
Working smart, not hard, is the key to success in any venture, and bank debt collection is no different. Outsourcing recovery of delinquent debt early in the year leads to profit for all parties involved.
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