Based on data reported in February 2017 by The Center for Microeconomic Data, Federal Reserve Bank of New York (FRBNY) …
Auto loan outstandings continued its record upward trajectory in the fourth quarter of 2016, increasing $22 billion. It was the largest third to fourth quarter increase in terms of dollars for as far back as the FRBNY is reporting such data (since 2003). Also, auto loan balances that transitioned from current to 30+ days-past-due (DPD) and from current, 30, or 60 DPD to 90+ DPD reached all-time record-high levels, exceeding the dollars delinquent during the Great Recession. See the charts below.
For service and collections leaders the stress and strain of the increasing workload associated with record-high delinquency dollars continues. Prudent leaders are seeking, implementing and refining tools and strategies to combat the growing workload.
Ensuring collectors are producing high-quantity and high-quality phone conversations with delinquent customers is generally the most important collections strategy. Dialers are a proven tool for efficiently generating phone calls. But what happens when the dialer is not effective in establishing contact with customers? In many cases collectors spend substantial non-phone-time searching for contacts and phone numbers to call. It’s very laborious and significantly reduces collector productivity; and, the number of accounts they’re able to handle drops dramatically … just what collections leaders don’t need in their pursuit of winning the “race against time”, especially during periods of record high workloads.
masterQueue (mQ), a contact management software developed by Intellaegis, addresses this pain point. mQ directly interfaces with many mainstream data providers like Equifax, Experian, TU, LexisNexis, and license plate recognition data was recently added. mQ systematically combines, presents and tracks data from multiple sources in an innovative way to help collectors make contact with delinquent customers. It significantly reduces non-phone-time, and thereby increases right-party contacts without adding collectors. By enabling collectors to contact delinquent customers sooner it helps to resolve delinquency prior to another payment becoming past due. In most cases, each successive past-due payment exponentially increases the probability of loss … mQ aids in reducing losses and thereby helps you win the “race against time” in collections!