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Interesting Info about M.A.D collections


chingasaholo
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Got this from the enemy's website, very informative information about how they work....

MAD STATS

I have over 1000 clients; of those 852 have placed repeat business with me. The others have been either small businesses that placed one account or someone placing a bad check, etc. This number changes every day, we are generally getting at the very least, one new client a day, but usually more.

My success percentage depends on the age of the account when it is placed, and if the account is a skip. Our percentage rate is normally about 65%. We do very well. The current number of accounts we have as of 1/31/03 is 3,992, the current delinquents are about 72% and the older delinquents are about 28%.

The first thing we do when we receive accounts is to send them a letter letting them know the account has been placed with MAD Collection Agency, who the creditor is, and what the amount due is. We are also obligated by law to let them know their rights, which are that they have 30 days to request verification of the debt or to dispute it. We wait a few days so we are sure they have received this notice and we begin to call them. We do not call every day, so that they cannot say we are harassing them. If we get them on the phone we try to obtain payment right then and there with payment by credit card or check by phone. If we get an answering machine, we will call every other day until we reach them. If we cannot get a return call from them, we will call them at work and send out more notices. We also report to the credit bureaus so we use that as a tool to try to expedite payment. We follow the Fair Debt Collection Practices Act very closely.

The average collection time to completion is within 60 days on most accounts. It is longer when we have to skip trace; we have even cleared up accounts within the first 30 days. Then we do have others that have taken over 6 months! We try VERY hard to get you as much money as we can as fast as we can.

"know your enemy and know yourself and in 1000 battle's you'll be victorious" sun tzu, art of war

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Thanks. Very good inside information. Though it seems to be cleaned up and very optimistic for them.

Some internal memos not meant for outside use would be even better ;)

I would like to see their percentage for collecting vs. judgements vs. no action at all from DV.

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Judgments are a different matter and accounts they are unable to collect on typically go back to the OC who then decides what further action is necessary. Normally creditors have relationships with lawyers all over the country who actually file lawsuits in the jurisdication where the debtor lives. When a judgment is granted, the winner can then go after the debtors assets until satified. The only way (in most states) to get rid of a judgment is to mutually settle or file bankruptcy. Collection agencies are a great business to be in as it's all a numbers game. Typically half of what they collect, they keep! Regardless of whether they collect partially or in full, the debtors credit is still ruined!

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the above agency is just one example of the enemy......When I had collection's on my report years ago I would love fighting with them. Was in my younger days, gave me hours and hours of quality entertainment. They are so used to flustering and harrasing people they dont know what to do when you begin harassing them. I love putting them on the defensive.

cheers,

ching

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