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WHY ARE THE RESULTS OF OUR SYSTEM SO VASTLY SUPERIOR?

First, it is important to understand why any collection agency can collect money that continued in-house effort will not recover; in the collection industry it's called "third party intervention", and it consists of three elements:

1. Intensified demand. Debtors believe agencies have resources beyond those available to other companies.
2. Implied effort on credit standing. Third party involvement implies credit rating may suffer.
3. Negative image of the agency. Collection agencies are perceived as relentless and utterly serious about collecting money.

 

WHY CAN'T CONVENTIONAL AGENCIES COLLECT MORE MONEY THAN THEY DO?

Primarily because they charge too much to induce early placement; as a result they get the accounts too late - at an average age of 8 months - when collectibility has deteriorated nearly 80%.

Here is what happens to the accounts:

As collection statistics bear out, there is a direct relationship between the age of receivables and their deterioration in collectability, at the average rate of ten cents per dollar per month.