PPMS Training and Certification

A successful business can greatly benefit from having a framework which guides the process through which it serves its clients. In our industry, one such framework is the Professional Practices Management System™ (PPMS™), which is awarded through a program offered by the Association of Credit and Collection Professionals (ACA International). Credit Consulting Services, Inc. is proud to announce that we have has recently earned this certification!

PPMS™ is a specialized certification for accounts receivable firms that demonstrates that a business has built a manual of sound and efficient policies and procedures which results in high-level business practices and increased client satisfaction. Additionally, it is a system dedicated to having progressive internal audits, management reviews, and annual analysis of adherence to the core PPMS™ elements.

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Taking a Bite out of Bad Debt

Biting out of bad debt

Collections.  Do you or don’t you?  As a dental practitioner, you went to school to do one thing and that is to take care of people.  You provide them with a service that improves the quality of their life in one way or another.   In turn they pay you for this service.  In a perfect world, this all works out nicely and with little issue.  However, if you have been in business for any period of time you know that it isn’t always so smooth – sometimes payment just doesn’t come easily.  If you haven’t already experienced this problem, know that you will.  It is inevitable. Continue reading

Big Changes in Medical Debt Reporting

medical debt collectionThe National Consumer Assistance Plan (NCAP) has been making big waves in the area of credit report accuracy. As a reminder, the initiative, started by the three consumer credit reporting companies – TransUnion, Experian, and Equifax – aims to ensure the most accurate credit reports possible. For more information about the NCAP, check out our previous blog post or visit their website.

One of the plan’s reforms focuses on combating the inaccuracies in credit reports that are caused by medical debt.  In a study by ACA International, called “The Role of Third-Party Debt Collection in the U.S. Economy”, of the debt collected by third party agencies, 38% was medical. With such a large market in medical debt, the changes that the NCAP has instituted will prove to be significant.
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Customer Service – When Less May be More

Traditionally, “customer service” meant paying more attention to the consumer. However, in some cases it may actually mean paying less attention – at least from a human to human perspective. A different form of service is increasingly being requested – self-service.

At one time, customer service representatives were the primary provider of information and consumers needed to contact them as a key source for that information. Now that same information is often just a click away. Additionally, a company representative was almost always needed to complete a transaction.
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The Importance of a Credit Policy Review

credit-policy-reviewWe talked about the Consumer Financial Protection Bureau and their proposed rulemaking for the debt collection industry in an earlier post. It is important to note that this proposed rulemaking will affect not just debt collection agencies; it will also affect the original debt owner – the creditor. The CFPB is focusing on data integrity to make sure collection agencies are receiving accurate data from their clients before they begin the collection process.

The CFPB states that “the most common debt collection complaint received by the Bureau concerns collectors seeking to recover from the wrong consumer or in the wrong amount.” They further state that they believe this stems in large part from “substantial deficiencies in the quality and quantity of information collectors receive at placement of the debt.”
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Cost of Living Outpacing Income

budgetWe took a look at NerdWallet’s 2016 American Household Credit Card Debt Study recently, which shows that overall US household debt has increased by 11% in the last decade. The increase is not driven by profligate spending, but by basic cost of living increases that have outpaced income growth. Medical and housing costs, in particular, are growing at a much faster pace than income. Consumers find themselves relying on credit cards to make ends meet. Households with credit card debt average $16,061 in balances, which costs them about $1,300 a year in interest.
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Credit Delinquency Rising in 2017?

new-carsUS consumers accumulated a record-setting $21.9 billion in credit card debt in the third quarter of 2016, the largest third quarter debt increase since 2007, according to the latest Credit Card Debt Study: Trends & Insights from WalletHub. What is even more concerning is that TransUnion’s 2017 Consumer Credit Market Forecast indicates that delinquency rates for credit cards and auto loans are expected to increase in 2017.
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Consumer’s Credit Access Experiences and Expectations Decline

bigstock-male-hand-showing-credit-card-19469411The Federal Reserve Bank of New York released results from its October 2016 Survey of Consumer Expectations (SCE) Credit Access Survey, and the news is not good.

The Credit Access Survey is a component of the SCE that measures consumers’ expectations and experiences concerning access to credit, such as:

  • The likelihood of applying for a credit card over the next 12 months;
  • The likelihood of rejection of a credit application;
  • The likelihood of rejection of a credit limit increase;
  • The likelihood of rejection of a mortgage or mortgage refinance.

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Access to Credit Builds Consumer Confidence

tight-moneyFast on the heels of the release of the CFPB’s Proposed Rule, which could effectively shut down the small dollar lending market, comes the news that consumers’ spending expectations dropped, after an upswing in September. Perhaps not surprisingly, there was also a decline in consumers’ outlook on credit availability in the year ahead, according to the Federal Reserve Bank of New York.

The New York Fed’s Survey of Consumer Expectations is a monthly, internet-based survey of approximately 1,200 household heads. It contains insight about how consumers expect overall inflation and prices for food, gas, housing, education and medical care to change over time. It also provides Americans’ views about job prospects and earnings growth, as well as their expectations about future spending and access to credit.

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