FICO Blog

JANUARY 18, 2023

Top 5 Debt Collection Posts of 2022: Crisis and Opportunity. As more people enter the collections queue due to rising costs and economic wobbles, our collections experts share their tips for early collections, digital approaches and more. Here are the top five posts from 2022 on debt collection trends.

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Fundera

JULY 22, 2018

Default vs. Delinquency. Loan defaults and delinquencies both stem from overdue loan payments. If you miss several payments or can’t make payments for an extended time (usually 90 to 120 days), the lender will place the loan in default and can start collection proceedings against you. What’s a Defaulted Loan?

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Fundera

MARCH 3, 2019

If you miss several payments or can’t make payments for an extended time (usually 90 to 120 days), the lender will place the loan in default and can start collection proceedings against you. Both delinquencies and defaults damage your credit. Defaulted loans have worse, longer-lasting consequences.

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Know-It Global

JULY 26, 2023

You’ll clearly see: Credit rating Credit score Credit limit Company financials Track record of recent payments and any defaults CCJs Exceptional Events Plus, you’ll also have access to Unsecured Creditor Claims data, information not included in standard business credit reports. Check-it business credit reports are powered by Creditsafe!

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Fundera

SEPTEMBER 9, 2018

But life, and business, does happen, and some who take out SBA loans do experience SBA loan default. You’re not the first—and certainly won’t be the last—to default on an SBA loan. We’ll go through what happens if you do need to go through the SBA loan default process. The SBA Loan Default Process: What to Expect.

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Your Virtual Credit Manager

OCTOBER 31, 2023

Economic downturns can impact a customer's ability to pay, leading to delayed or defaulted payments. Simply put, if customers have weak financials or a history of late payments or defaults, there is an elevated risk of bad debt.

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RMAi Blog

MARCH 14, 2023

New York AB 1035 – This bill would prohibit debt collectors from communicating with consumers through the use of email, text messaging, or private communication tools offered by social media companies. DFS is struggling with how to develop an appropriate consumer notice since the CCFA does not apply to all forms of consumer debt.

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Know-It Global

JUNE 20, 2023

Similarly, suppliers can evaluate the risk of late payments or default, allowing them to set appropriate credit terms. They contain information about credit utilisation, payment history, outstanding debts, and public records such as bankruptcies or liens. 3: Debt Recovery and Minimising Bad Debt 3.1

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Your Virtual Credit Manager

JUNE 4, 2024

To achieve maximum collections coverage within the parameters permitted by the available time and resources is why you need a well-thought out collection strategy. If not, you are probably not collecting all you should. Confirming promised payment amounts and dates will expose any ambiguity and discourage further payment delays.

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Your Virtual Credit Manager

MARCH 19, 2024

Going forward, you should treat them as a new customer, but in the meantime, you still need to collect any existing debt. Collection Activity: Reach out to new management or ownership to confirm their awareness of outstanding debts and re-establish payment arrangements.

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FICO Blog

DECEMBER 8, 2022

Building portfolio risk resilience into Collections & Recovery. Properly managed and strategized, the debt collections process can be an effective customer service asset and anti-attrition tool, in addition to being its classic role in portfolio risk management. asokolowski. Fri, 06/03/2022 - 12:24. by Jim Patterson.

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RMAi Blog

APRIL 12, 2023

New York AB 1035 – This bill would prohibit debt collectors from communicating with consumers through the use of email, text messaging, or private communication tools offered by social media companies. DFS is struggling with how to develop an appropriate consumer notice since the CCFA does not apply to all forms of consumer debt.

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MNS Credit Management Group

JULY 12, 2023

Some candidates who don’t have a FICO score might experience a lower default rate than those who do. How can bad debts be recouped? Bad debts are a given in the loan industry. Speak to a debt-collecting company A collection agency phones and emails debtors and, if required, litigates on their behalf.

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TreviPay

SEPTEMBER 18, 2024

This type of insurance acts as a safety net, covering unpaid invoices when clients default or face financial difficulties. Its primary purpose is to mitigate the financial risks of trade credit by covering outstanding receivables if a customer defaults because of insolvency or other financial difficulties.

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Biz2X

JULY 11, 2023

It also offers automated debt collection. Enhanced scoring of business credit risk using default probability based on modeling. Create and distribute scheduled and ad hoc debt collection notifications in different media. Automated calculation of prospective-borrower credit ratings.

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TreviPay

APRIL 28, 2023

Tip 5: Speed-up your payment collections Consider a world with no worries about collections. This can be a reality with an outsourced digitized collection process. If your customers default on the payment, you can still get paid as the third-party provider takes care of the debt collection.

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Fundera

OCTOBER 6, 2019

The debt is enforceable under state law. Each state has its own statute of limitations for debt collection. . You have a reasonable expectation that the debt will be repaid. . You have remedies upon default (security interest or the position of the lender with respect to other creditors).

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FICO Blog

JANUARY 19, 2023

Instances of customers being given the wrong collections or forbearance solution at the outset are likely to have a significant knock-on effect with higher volumes defaulting. Read Agile Collections Strategies Can Protect Loyalty in Tough Times Read Debt Collection: Have We Learned the Lessons of the Last Crises?

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Know-It Global

JULY 5, 2023

Any defaults on payment or CCJs you should be aware of. Effective Debt Recovery Establish a clear process for debt recovery, including escalation procedures for overdue payments. Consider using a debt collection agency if internal efforts are unsuccessful. A good business credit report will give you: Credit rating.

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Emagia

JUNE 12, 2023

Effective credit risk management enables organizations to make informed decisions, protect their assets, maintain healthy cash flows, and safeguard against default and financial losses. Lenders can mitigate credit risk by evaluating various aspects of a borrower’s creditworthiness, including their existing debt obligations and income.

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Biz2X

SEPTEMBER 10, 2024

On the repayment front, automated systems offer lenders improved visibility into outstanding loans and can streamline debt collection processes, helping avoid default risks. Lending institutions can then use automated software and AI to optimize loan pricing and maximize profits.

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CreditStrong for Business

OCTOBER 24, 2024

In the event of a default on a secured loan, the lender will take possession of the collateral asset based on a legal right or claim known as a lien. If the collateral is insufficient for recouping the entire loss, the lender might take further legal action in an effort to collect the balance.

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CreditStrong for Business

AUGUST 30, 2024

If appropriate, a judge may “vacate” judgment or default, allowing for the removal of the records. First, a collection agency may assume responsibility for recovering the debt. Collection activity will show on your credit report and adversely impact your likelihood of qualifying for financing for roughly seven years.

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RMAi Blog

JANUARY 13, 2023

Here are some recently introduced bills that might be of interest: New York SB 171 – This bill would create a private right of action against originating creditors and debt collectors for a violation of the Debt Collection Procedures Act.

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FICO Blog

JANUARY 3, 2023

For the two cohorts that have fallen foul of the current economic headache, smart treatments include adjusting default and write-off policies to ensure they get a chance to return to form, changing the terms and objectives of debt sale and contingency placement contracts, while also reviewing and aligning collection and forbearance solutions.

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JSP Credit Management

FEBRUARY 21, 2022

As humans, it seems we are inherently driven to find our own personal zone of maximum comfort by default. What we come across regularly as providers of debt collection services, are poorly drawn up terms and conditions that pay little attention to the potential for late payment from a customer. Change is usually painful.

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Due

AUGUST 27, 2024

Should they default, the lender will be required to submit a notice that complies with the Fair Debt Collection Practices Act. Fortunately, some good news exists for borrowers who cannot repay their title loans.

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RMAi Blog

APRIL 14, 2025

The exempt activities do not include debt collection. RMAI is working with an industry coalition to seek an express exemption for debt collection. Clearly, if debt collection were to be included, it would result in FDCPA violations. RMAI is in support of this legislation. Midland Credit Mgmt.,

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Your Virtual Credit Manager

MARCH 18, 2025

In the complex world of business-to-business commerce, debt collection, though sometimes unappreciated, remains a critical yet delicate process. Photo by NoWah Bartscher on Unsplash ) Effective debt collection is not just about recouping owed funds; it's an art that requires finesse, legal awareness, and strategic communication.

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RMAi Blog

MARCH 14, 2025

The Court of Appeals of Wisconsin, District I, recently held that the National Bank Act does not preempt the Wisconsin Consumer Acts requirement to send a notice of right to cure to a borrower in default prior to filing a collection action. A Wisconsin borrower defaulted on two credit card accounts issued by a national bank.

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CreditStrong for Business

OCTOBER 30, 2024

Regarding the resulting bad credit, settlements could reduce your credit score by over 100 points, which likely remains higher than if you had multiple accounts in debt collection that ended in bankruptcy. The debt settlement process will also likely result in late or missed payments being reported.

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