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Implementing Process Improvement to Government Collections
Craig Nielson
How have the last few years been?
How have you reacted?• Budget cuts• Furloughs• Staffing (adding or reducing)• Changes in focus and responsibilities• Outsourcing• More technology• Less technology• New processes and activities
We collect because….
•Revenue•Legislative mandate•It’s the Law!•Accountability•It is the right thing to do•It’s my job•Other reasons…..
Collection Challenges
• Too many not paying• Too few staff• Too little time• Revenue• Data integration with host system(s)• Locating missing debtors• Anything else?
“What are Ideal Collections?”
Maximizing each collections phase and opportunity by utilizing the best mix of techniques, tools and technologies to enhance your success.
Why the rush?
Because Time really IS Money….
Effective Collection Perspectives• Like leftovers, “The fresher the better”• Constant contact and immediate response• People who are not contacted either by letter
or phone are not likely to pay• It is okay to hold them accountable• Consequences of nonpayment is
communicated• A softer approach may be more effective• You are assisting them to move on with life
Collection Objectives
• The right person, working the right account, at the right time. Every time.
• Quicker response by debtors• Less time and effort spent per account• Revenue is increased• Simplified and consistent account flow• Making the Staff’s work easier (and more productive!)
Some Debtors have Less Money
How does that change your priorities, approach and activities with regard to?
• Targeting and prioritizing• Contacting• Correspondence• Payment Plans• How long you work with them• Outsourcing
Maximizing the Entire Lifecycle?
Workflow Management
Leveraging each Step or Process
Assignment Methodology
•Age of obligation•Account type•Dollar value•Worker Type/Responsibility•Volume of cases/account•Available resources•Legal requirements – FDCPA, TCPA, Etc.•Collections history
Contacting Methods
•Onsite•In Person•Correspondence•Outbound Calling•Automated/Predictive Dialing•Field Collections•Email•Text
Multiple Payment Options
• Onsite at the counter• Mail• Online portal• With staff over the phone• IVR• Payment/installment plan• Kiosk
Multiple Payment Methods
• Cash• Check• Money order• Debit• Credit cards• Electronic funds transfer
External Data Sources
• Credit bureaus• Skip tracing• Analytics• NCOA• Other government departments
– DMV - LEDS, EDD, police, etc.
Proactive/Assertive Measures• Collection fees – payment plan, per payment• Imposition of Interest• Penalties• Refund/payment intercept/offset• Withholding of benefits• Liens, levies and garnishment• Seizure• Warrant, arrest or incarceration
Outsourcing Collections
• Need• Volume• Cost• When• Why• How• One agency vs. multiple• How long to they keep them• What is your “Sweet Spot”?
Performance Metrics and Goals
• Examine the results from each activity• Dollars• Contacts• Letters sent• Paid in full• Pay plans• Collection percentage• Volume reduction
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Days
Revenue Traffic
Probation
Public Defender
