Matt Angell Chief Operating Officer DEBT COLLECTION OR 24 June 2014 HARDSHIP MANAGEMENT? Collections & Hardship Programs in Utilities, Banks & Telecommunications
May 21, 2015
Matt Angell Chief Operating Officer
DEBT COLLECTION OR
24 June 2014
HARDSHIP MANAGEMENT?
Collections & Hardship Programs in Utilities, Banks & Telecommunications
WORKING WITH YOU
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
The power of a paradigm
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Credit Corp Group Limited is Australia’s largest debt collection company
˃ S&P/ASX 200 debt purchasing and consumer finance company
˃ >900 collection staff
˃ Average investment of $135m per year in purchasing distressed consumer accounts
˃ 745,00 overdue consumer debts, totalling ~$4.6bn in outstanding balances
˃ > 1 million potential customer contacts per month
˃ Purchases bank, finance, telecommunication, utility and debt agreement portfolios
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
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The Credit Corp – Kildonan journey 4 years of collaboration on hardship and collections
Listening, observation & assessment
1
2 Embedding an improved collection culture
Comprehensive training & external engagement 3
4 Redefining performance & ongoing training
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
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My department works to:
> Understand that anyone can experience unexpected financial problems
> Engage with our customers in a manner which encourages continued contact, honest representation of issues and intentionally counteracts potential roadblocks including embarrassment, avoidance, etc.
> Agree a tailored solution which works within the constraints of a customer’s financial circumstances
> Maintain the integrity of the corporate objective of minimising financial loss
> Collaborate effectively with financial counsellors and other consumer representatives
> Achieve on target customer satisfaction feedback
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
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Debt collection departments and companies exist somewhere on a continuum in their capacity to successfully cope with consumer hardship
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
Then Now Both
- Irresponsible, deceptive, borderline criminal
- In difficulty due to changed circumstances
The customer
The outcome
Customer experience
Financial counsellors
The conversations - Respectful, active and responding
- A flexible tailored strategy which suits the situation
- Willing to continue to engage
- Useful allies who we can learn from
- Overly assertive, little room for the customer to present their situation
- Payment or settlement in full or a lawsuit
- Sense of threat and dread – avoid future calls!
- Bleeding heart enemies
Net recoveries provide
sustainable return
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Responding to the shift
> 360 degree review of progress inclusive of feedback from staff, regulators, EDR schemes, FCs, legal services and consumers – in short – build an honest picture about present performance
> Develop policies, procedures and scripts which address regulation but more importantly the realities of engaging with consumers in hardship
> Introduce an ongoing training regime which develops improved awareness of those issues utilising external experts
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
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Responding to the shift - continued
> Challenge historic collection incentive models and align bonus systems with desired behaviour
> Ensure (via preventative and detective controls) compliance with policies and act against breaches
> Rinse and repeat
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
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The results – revenue from flexible repayment arrangements
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
We have observed a >50% increase in revenue from this group of customers, who now comprise >70% of our monthly collection receipts. This is an industry leading statistic.
$66,000
$71,000
$76,000
$81,000
$86,000
$91,000
$96,000
$101,000
Dec-11 Jul-12 Jan-13 Jul-13
Ledger Collections - Payers Base
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The results: Australian CRM productivity ($/hr)
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
$210
$220
$230
$240
$250
$260
$270
$280
$290
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 (YTD)
This has driven a healthy (>25%) increase in collector productivity
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Matt Angell Chief Operations Offices
Debt collec)on or hardship management? | June 2014 | CREDIT CORP GROUP
Matt Angell Chief Operating Officer
QUESTIONS? Collections & Hardship Programs in Utilities, Banks & Telecommunications