Effectively Managing Collection Agencies

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Effectively Managing Collection Agencies

• CCULAA 2008

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Facilitated By

• Stefanie Hangen Senior Business Analyst, ACS,
  Inc.
• Denise Burt Bursar, Santa Clara University
• Tessa Romero Credit Counselor, Santa Clara
  University
• Mary Anne Lower Collections Manager, University
  of the Pacific - Stockton
• Kristi Y. Shintaku - Loan Office Supervisor,
  Loyola Marymount University

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Agenda

• Choosing a Good Collection Partner
• Evaluating your Agencies
• Assigning and Recalling Accounts
• Building Rapport
• Terminating your Relationship

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Session Goals

• Determine best practices
• Information sharing
• Expand knowledge base on collection process
• Build networking opportunities
• Provide tools to assist with the collection
  process
• Leave with a plan

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Choosing A Collection Partner

• Request fo r Proposal
• Request for Information
• Interview
• Lay out expectations
• Review contract carefully
• How many agencies do you need?
• Which method does your institution use?
• What do you look for in an agency?

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Requirements Background

• Experience
• Affiliations
• Philosophy
• Technology
• What do you need to know about the agency?
• What is the agencys client base?
• What tools does your agency use?
• What percentage of the agencys business is
  Higher Ed?

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Other Considerations

• How many agencies do you need?
• Is location a consideration?

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Evaluating Your Agencies

• Create Analytical Spreadsheet
• Compare the numbers
• Review expectations document concerns in writing
• Make sure to discuss any concerns regarding
  performance
• How frequently do you evaluate your agencies?
• Do you know what to expect?
• What is a good return? 25? 40?
• Should you share your collection stats with other
  agencies?

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Assigning and Recalling Accounts

• How do you divide your placements among agencies?
  
• How long do you allow your placements to stay at
  an agency before trying another?
• How are you assigning and recalling business?
• - Paper vs. Electronic?
• Are you giving agencies access to your system
  and/or billing service?

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Establishing Rapport

• Know your contacts
• Schedule meetings
• Establish regular communication
• How do you stay connected with your agency
  representatives?
• How much contact do your agencies have with you?
• Business vs. personal relationship. What is
  appropriate?

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Terminating Your Relationship

• Re-review your contract
• Be prepared to provide documentation on
  performance issues
• Put it in writing
• Set timeline for returning accounts
• Have plan in place for reassigning accounts
• Inform your students/borrowers
• How do you successfully terminate your contracts?

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Overview

• Remember
• Do your homework!
• You have to put in what you want out
• Network, network, network!
• You have choices