The USP of Good Trace Data

The value of good data is growing, this is confirmed by the rising valuations of the data suppliers on the stock markets. Like the most successful businesses they have been maximising efficiencies, reducing waste and nurturing their USP’s, which in the case of data providers is the quality and quantity of data they have to provide.

The Office of Fair Trading is now putting a “strong emphasis on the data passed between lenders, collection agencies and debt purchasers” and they want to facilitate greater data sharing in the future. However, data houses and credit reference agencies will avoid sharing their data where possible as it is their unique selling point. You would not expect Apple to give any of it patents up to Nokia because they wanted to improve the customer experience.

In the this current volatile environment it is important more than ever to have the correct processes in place in order to deal with the data in the correct manner. Now more than ever the data that is needed to make the correct judgements and decisions with regards to the next step in the collections and recoveries process is available from somewhere, however the issue now lies with being able to interpret and use the information and data available to best effect.

There is no point being able to bulk process a hundred or a thousand cases if you haven’t got the ability to analyse and evaluate the returning data in an efficient and compliant manner.   

For a product brochure to see how tracehunter can enhance your time function call us on 0161 713 2213 or email us at info@tracehunter.co.uk.

tracehunter Demonstration

Would you like to see what tracehunter can do for you? Interested in what people are talking about? Don’t believe tracehunter can save you time? Looking at growing or starting a trace department?

Then get in touch to see how we can help.

If you would like to book in a slot for a no obligations web demonstration, email us at info@tracehunter.co.uk or call our customer care line on 0161 713 2213 and we will arrange a date to show you what tracehunter can do to enhance the productivity of your debtor trace department while simplifying trace compliance.

Credit Card Repayments down to lowest levels in two years

Recent research has shown UK credit card holders are paying less of their outstanding balances now than at any point in the last two years. The decline in payment-to-balance ratios is worrying as it highlights once again that some UK residents are struggling to live within their means. The growth of everyday items such as groceries being put on credit also highlights the decline in disposable income.  

Banks at the same time are reducing credit lines to individuals, down 4.3 percent since March. These two factors are going to come to a head soon, with the predictable outcome being a rise in bankruptcies.

Is Debt the New Oil?

A number of articles have been published recently comparing the UK consumer debt market to other safe long-term investments such as oil and why shouldn’t they? The UK consumer debt market is growing at between 10 and 15 percent per year, with improved technology and training collections rates have become highly predictable.

As an industry, collections has come a long way, from a time of heavy handed tactics to a customer focused compliant business arena. The debt purchase market is developing all the time and with financial complications all over the EU, some key figures within the purchase market believe the next few years could prove to be bumper for the industry.

124,000 Missing & Untraceable

The number of non-locatable asylum-seekers in the UK stands at 124,000 or as repeatedly reported in the news the same amount of people as the population of Cambridge. These cases have found their way to a ‘controlled archives’, which has become a dumping ground for cases.

Of course it is impossible for border officials to conduct traces for these missing people through Credit Reference Agencies. However, surely they could follow the same lines of enquires as a debtor trace agent in order to locate a number of the 124,000 missing.

Everyone leaves a trail of some description even if they don’t want to be found. One does wonder how much effort borders officials have put in to finding these missing individuals? It is a fact after all the vast majority of people who move do so within a 10 mile radius of their last known address. Otherwise they move towards family and friends, which one would hope there are records for.

FREE Report - How to add up to 100% to the Productivity of your Debtor Trace Department

Over the past decade Focus Software Systems have worked very closely with the debtor trace industry, developing a flexible software platform now known as tracehunter. tracehunter has been specifically designed for the trace industry and offers unique functionally.
 

We have compiled a free report explaining how we have helped a number of UK debt collectors achieve this significant growth in productivity while reducing the cost of compliance. If you would like a free copy please message me your contact details and I’ll happily send you a copy.

Alternatively Email us at info@tracehunter.co.uk

tracehunter Comment on Reviewed OFT Collection Guidance

Paul Coxson CEO of Focus Software Systems and developer of tracehunter comments on the updated OFT Debt Collection Guidance:

“After reading the updated OFT guidance on debt collection, it was simple to see that everything that has been added is already done by the vast majority of the industry. All of those that we have worked with over the years have found that by treating debtors fairly they get a much better response.”

“It is positive that there is an emphasis on the debtor to pay what is rightfully owed, at the same time as highlighting the protection, which must be offered to those within our society who are most vulnerable.”

“I recall that when the guidelines were last updated in 2006, the word ‘compliance’ wasn’t mentioned once, now it features on nearly every page. As the industry moves forward compliance is going to continue to be at the core of the most successful firms operations.”

 “Over the years we have worked with our clients to add and improve features of our software to enhance compliance. For many years they have been far surpassing even these new more stringent trace guidelines. Now there is more clarity following the release of the guidance there is less openness to interpretation, which can only be a good thing as the industry evolves.” 

 “I’d like to extend my warmest of offers to anyone who conducts trace and is concerned about the new guidelines, we’ll be happy to consult you on the new guidance and how it may affect you, feel free to get in touch.”

“tracehunter -  Best in Class Debtor Trace Management Platform”

Why are more people changing their name?

Ever greater numbers of people are changing their names via deed poll, whether through hero worship, embarrassment or to avoid being found.

Changing a name has grown in popular at a immense rate, with there being 30% more documents issued this September compared with last. There has been a 1060% growth in people changing their names in the past decade.

300 people have become John Smith in the past year making it the most popular name. This can be seen as just a name change, however to those with a cynical view like myself it away for people to try to make themselves harder to find.

Anyone can change their name as long as they don’t intend to deceive or defraud. Proof is needed to change important documents, for example bank accounts. However, the ease with which people can change their names does raise concerns, as debtors could try to benefit from changing their names to avoid detection.

Mis-trace, ‘We can’t fix our credit file’

Mis-trace is one of the biggest issues for the collections industry. On Sunday the 3rd of April this was highlighted once again in The Telegraph. An article tells the story of a man who had been mis-traced, even though he was 30 years younger than the debtor, and the trouble that resulted in getting his name cleared (R Murray-West, 2011).

The same article also explained how mis-trace was on the rise in recent years. This said, the Information Commissioner's office only received 140 cases related to inaccurate information help by credit reference agencies. This is a good indicator of how few cases there are of mis-trace and yet the significant affect these few cases can have on public opinion.

Focus Software Build University Relationship

Leading bespoke software house Focus Software Systems the developers of tracehunter have continued to cultivate their relationship with Manchester Metropolitan University Business School, Recently helping to develop a business assignment for students returning to their 2^nd year of study.

The mutually beneficial relationship allows students to gain experience from real life case studies, with the aim of providing realistic solutions to current industry issues.   

Focus Software’s managing director Paul Coxson said “I feel it is very important to give the younger generation real life opportunities to learn and develop. From past experience we hope to that we will be presented with some fantastic ideas for possible development work”.  

tracehunter

A new adaptation to tracehunter’s bulk processing capabilities allows even simpler processing of bulk debtor cases, with unprecedented levels on trace automation. This allows for substantial cost savings while increasing your control over the entire debtor trace process, reducing agent time per case significantly.

tracehunter has solid and proven results to find out more:

Visit us http://www.tracehunter.co.uk

Follow us http://www.twitter.co.uk/fss_tracehunter

tracehunter

Ultimate debtor trace management software

Call us on 0161 713 2213

Visit us at http://www.tracehunter.co.uk

We also offer free trace consultations, with regards to industry compliance. 

Free Industry Report

By the end of next week, to coincide with the CSA conference, we’ll be releasing two free reports on the debtor tracer industry. The first report will look at the issue of mis-trace and the collections industry, while the second will cover the issue of productivity.

If you would like a free copy of both, please email info@tracehunter and we’ll send you copies of both upon their release.  

Performance Monitoring

Measuring the performance of employees is an issue of importance no matter what industry you are in. In relation to debtor trace performance of agents needs to be monitored from many angles, as to judges agent success on productivity alone will inevitably lead to a reduction in quality of work.

There are two areas to performance monitoring, firstly, you need to be able to collect data. Secondly, you need to be able to analysis the data as it doesn’t matter how much data you collect it is what you do with it that matters. Recent research  has shown small bonuses often beat large bonuses sparingly when it comes to getting the most from your staff.

“If you are not moving forward you are going backwards”

tracehunter

Visit us at http://www.tracehunter.co.uk

Workflow Management

In mostly every aspect of business you work to a set rhythm and flow. The better rhythm and flow works the less time will be wasted and the more money will be saved. Below is a list of what is needed from a successful workflow. All of these bullet points have been taken into great consideration during the development of tracehunter.

Workflow breakdown (H Smith & P Finger, 2009)

• Automation   - Eliminating human labour from a process

• Informational   - Capturing process information for purposes of understanding

• Sequential   - Changing process sequence, or enabling parallelism

• Tracking   - Closely monitoring process status and participants

• Analytical  - Improving analysis of information and decision-making

• Geographical   - Coordinating processes across distances

• Integrative   - Consolidating and integrating sub-processes and tasks

• Intellectual   - The process of capturing and distributing intellectual assets

• Disintermediation  - Eliminating intermediaries from a process

• Computational   - Performing calculations as part of a distributed process

• Collaborative   - Allowing participants to manage sets of shared work processes

• Compositional   - Building new processes from elementary reusable process patterns

Before the 'Credit Crunch'

Reading some literature on the economy prior to the Credit Crunch now makes you wonder how so many people could lacked the foresight to what was to come? In one article from 2005 there’s an argument that even though personal debt stood at £1.1 trillion in the UK it wasn’t too much of an issue as the total housing stock in the UK was worth many times that. This led the author to argue that the issue of debt was fine as the individuals who shouldered it had the assets to cover its cost many times over.

Unsecured debts were growing and in 2005 they stood at £4,071 per person, and while the same article explained people were using credit to fund leisure activities and special occasions it didn’t make any reference to how this was unsustainable in the long-term. It is bizarre to think with hindsight that an academic could not see what to use all now seem obvious.

Human Error

96% of work place errors are attributed to what we call ‘human error’ (S. Lynn, 2005) a simple accidental action by an employee such as updating a debtors payment details incorrectly can have considerable long-term implications.

There are two schools of thought on reducing human error. Firstly, you can impose penalties on individuals who make errors, however recent research has shown penalties have little effect as well as increasing the likelihood of an unwillingness to own up to mistakes. The second way is to have the best possible systems in place to both help to prevent human error and then to help deal with it when errors occur. 

Everyone makes mistakes, new employees will be unsure of the rules and experienced employees will be prone to complacency. This is why it’s important to having to best possible systems in place, for debtor trace that system is tracehunter, visit http://www.tracehunter.co.uk to find out more.

tracehunter infomation

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visit us at:

http://www.tracehunter.co.uk

Get in touch with us at:

info@tracehunter.co.uk

Trace Technology and Business Development

There is a growing importance on the use of technology within all aspects of business. This is no different for the debt collection and trace industry. A recent survey showed 62% of the responding debt collection and recovery firms have increased investment in technology over the previous 12 months. 45% of these firms also said over the coming 12 months they were going to increase their investment in technology further. (CCR Magazine, 2011)

tracehunter offers some key technological benefits to the trace industry, which are really worth considering if you want the performance of your trace department to be enhanced in the coming year.

Compliance is Key to the Debtor Trace Process

The debt collection industry has done much over recent years to clean up its image and change the public perception of the industry as a whole. This has been done through a number of process changes, these changes are greatly dependent on compliance and through being compliant it is possible to enhance collections rates. Listed below are some key areas where firms need to be compliant:

·         Data Protection – One key area is collectors must not discuss a debt without confirming the debtor is the debtor, this can, in some cases be hard to do.

·         Treating Customers Fairly – People who owe money should be treated as customers rather than debtors.

·         Misrepresentation – Collectors can’t make threats they have no intention of keeping and collectors can’t intimidate people in financial difficulties.

·         Communication – You must us language and wording that is simple to understand and not misleading in anyway.

·         Managing 3^rd Parties – Collectors must insure where possible that any 3^rd parties they employ are compliant with any rules they should be, for example are trace firms working to the new CSA guidance on trace?

·         Information and Security – Collectors must store all data on collections and personal details in a security manner, plus they must delete it a timely manner.

Total Process Confidence

In recent years there has been some negative publicity around the debtor trace industry, mainly in regards to the recurring issues of mis-trace. The confidence of both clients and the public is easily lost.

 We understand how it only takes a small amount of bad publicity to greatly damage a reputation. Therefore, gambling with your reputation isn’t an option. tracehunter has been developed specifically for the trace industry and offers ultimate management control, total transparency and a comprehensive audit trail. Visit the tracehunter website to find out more http:\\www.tracehunter.co.uk.   

Mis-trace, ‘We can’t fix our credit file’

Mis-trace is one of the biggest issues for the collections industry. On Sunday the 3rd of April this was highlighted once again in The Telegraph, an article tells the story of a man who had been mis-traced, even though he was 30 years younger than the debtor, and the trouble that resulted in him getting his name cleared.

The same article also explained how mis-trace was on the rise of resent years. This said the Information Commissioners office only received 140 cases related to inaccurate information help by credit reference agencies, this highlights how few cases there are of mis-trace and yet the significant affect these few cases can have on public opinion. 

Staggering Amounts of Debt Being Written Off

“UK banks and building societies wrote off £9.5bn of loans to individuals in the 4 quarters to end Q1 2011.” (The Credit Action Group)

Such large figures being written off are never a good thing for the economy. With debtor’s credit ratings being devastated and in many cases, bankruptcy resulting, whilst the banks and debt collection firms loose out on monies they are owed. Investment in sound processes make sense for both parties. If debts go unpaid everyone stands to lose out.

Compliance is key to the trace process

The debt collection industry has done much over recent years to clean up its image and change the public perception of the industry as a whole. This has been done through a number of process changes, these changes are greatly reliant on compliance and through being compliant it is possible to enhance collections rates. Listed below are some key areas where firms need to be compliant:

·         Data protection – One key area is collectors must not discuss debt without confirming the debtor is the debtor, this can, in some cases can be hard to do.

·         Treating customers fairly – People who owe money should be treated as customers rather than debtors.

·         Misrepresentation – Collectors can’t make threats they have no intention of keeping and collectors can’t intimidate people in financial difficulties.

·         Communication – You must us language and wording that is simple to understand and not misleading in anyway.

·         Managing 3^rd Parties – Collectors must insure where possible that any 3^rd parties they employ are compliant with any rules they should be, for example are trace firms working to the new CSA guidance on trace?

·         Information and security – Collectors must store all data on collections and personal details in a security manner, plus they must delete it a timely manner.

The Continued Growth of Personal Debt

Personal debt in the UK stood at £1,451bn at the end of May according to The Credit Action Group. This figure has continued to expand at just less than 1% for a number of years now, with the average adult owing £29,839 when mortgages are included. This is not only 124% of average earnings but also costs on average £2,500 a year to just service the debt.
While the amount of debt shouldered by individuals has continually risen, their ability to pay and keep up with payments has fallen.  As wages have stagnated and the cost of living has risen, this has lead not only to growth within the debt collections industry, but a new breed of debtor who wants to pay, however, currently they’re unable to. In many cases these debtors are in this situation for the first time and it’s no fault of their own.

This has lead to much needed change within the debt collections and trace market, debt collectors are now treating people they are owed money by as customers rather than debtors. This has been done through system improvement, staff training and better customer data.     

“UK banks and building societies wrote off £9.5bn of loans to individuals in the 4 quarters to end Q1 2011.” (The Credit Action Group)

Such large figures being written off are never a good thing for an economy, with debtor’s credit ratings being destroyed and in some cases bankruptcy, while the banks and debt collections firms lose out on money they’re owned. Therefore, treating customers fairly makes since for both parties; as if debts go unpaid everyone stands to lose out.

Constant Development of tracehunter

Since tracehunter was initially developed 10 years ago the system has been continuously developed to keep up with the demanding and ever changing requirements of the debtor trace industry.

Owing to the fact we’re not tied to any one data set or source, tracehunter offers unique functionality. tracehunter can be integrated with most of the key data sets and sources and records a comprehensive audit trail of all trace agent activities.

Over the decade tracehunter has seen many developments within the debtor trace industry, from a time of bulk mail trace campaigns to a period now where electronic contract has taken over with an increased emphasis on dialler campaigns.  

tracehunter

If you're interested in finding out more about tracehunter and how the system can help to enhance your trace department:

Visit us at: http://www.tracehunter.co.uk

Or

Ring us on: 0161 713 2213

Interpretation of the CSA Guidelines

The CSA Code of Practice outlines how debtor trace should be undertaken, below is an extract from the Code of Practice from the section on debtor trace:

“5. Trace Guidelines

Each member [of the CSA] shall:

a) In all contact, be circumspect and act with full regard to the Data Protection principles.

b) Take all possible steps to verify that the person traced is in fact, the debtor.

c) Verify data relating to a debtors whereabouts via one or more of the following methods:

I. Public databases.

II. Sending soft letters.

III. Contacting other people.

IV. Investigative/Field enquiries.

d) Cease contact should it become apparent that the located person is not the debtor, and carry out further checks.” (CSA Code of Practice, 2009)

These guidelines for trace are very open to interpretation, for example what is really meant by ‘take all possible steps’? Surely this implies undertaking numerous tracing methods and collecting several pieces of validation data of where the debtor maybe.

Point C also raises an interesting point ‘verify data relating to a debtors whereabouts’. This could be interpreted as, if a case has gone to trace, it needs tracing and confirming and the confirmation needs verifying via a second source. This would mean that all trace departments would need two sources of data to confirm a trace. However, a number of firms begin the collection process in some cases with only one piece of trace data.

Trace Technology and Business Development

There is a growing importance on the use of technology within all aspects of business; this is no different for the debt collection and recoveries industry. A recent survey carried out between CCR Magazine and Transcom, showed 61.9% of the responding debt collection and recovery firms have increased technology investment over the previous 12 months. 45.4% also said over the coming 12 months they were going to increase their investment in technology further.  tracehunter offers some key technological benefits to the trace industry, which are really worth considering if you want the performance of your trace department to be enhanced in the coming year.

tracehunter allows you to:   

·         Reduce human error

·         Increase efficiency

·         meet rules and regulations

·         Have absolute transparency

·         Control every aspect of trace agents working criteria  

Debtor Trace Case Management Software

One of the main issues from research in to the debtor trace industry is the software that is currently being used to manage the debtor trace case process. Research suggests that all trace firms or departments have systems in place to manage their trace process, however, in many cases these are legacy collection systems or simple Spreadsheet databases. The main reason for more complex software systems not being in place is due to there not being much need.

However, substantial growth in the industry as well as increased rules and regulations, have lead to many trace case management software systems becoming outdated, inefficient and unsuitable for the job.

A recent survey titled ‘Debt Collection and the Recovery Industry’ illustrated that 73% of Collections firms thought increased regulations had added to their costs of debt collections, with 39% of these believing new regulations were adding upwards of 10% on their collections costs. Although it doesn’t detail the areas the increased costs have came from, it wouldn’t be a surprise if issues with trace and trace software had a big part to play.

The Recovery & Trace Industry

There are a number of terms that have become synonymous with the debt recovery and trace industry. Listed below are four of these terms that have been brought to the forefront of debtor trace over recent years:  

1.    Treating Customers Fairly – Treating customers fairly is not only important for compliance reasons, it also allows for good relationships to be built with debtors, good relationships lead to better payment rates. 

2.    Compliance – The issue of compliance has become ever more important, as rules and regulations around the trace industry have grown and become more complex over recent years.

3.    Productivity – There has been a considerable push post ‘credit crunch’ to maximise productivity, whether through increased collection rates or reduced down time, as the costs of doing business have risen.

4.    K.P.I’s – Key Performance Indicators are a simple way of quantifying success, there are many different K.P.I’s which can be used to measure collections and trace success. tracehunter, allows easy access to the K.P.I’s that matter most to you and your firm.

tracehunter is a trace case management tool designed specifically for the trace industry, unlike any other system on the market tracehunter has been developed to help meet the demanding needs of a trace department. Rather than trace departments having to work within the limitations of their legacy systems or in-house collection system.

As far as trace is concerned, tracehunter is at the forefront of productivity, designed to maximise trace agents time, and reduce the time they spend with each case.

'In a class of its own'

tracehunter offers both maximum quantity and maximum quality to debtor trace.

tracehunter has recently been described by a trace manager as ‘in a class of its own’, to find out why they believe this call us on 0161 713 2213



The Growth of the Hidden Debtor

“70% of instructions to collect required trace in 2009, that is some 15 million trace case” (CSA Website), however in 2008 according to the BBC (http://news.bbc.co.uk/1/hi/uk/7855068.stm) there was only 8 million traces preformed in 2008, and in 2007 there was only 1 million. So why are there so many traces being performed now then there were 5 years ago? Well amounts of debt and debtors have increased therefore there is more need for tracing, and technologies have improved therefore people are easier and cheaper to find.

Debtor Trace Compliance

Debtor tracing tactics and the issue of compliance have been closely linked over recent years, within the debt recoveries sector. Owning to the fact tracing is highly target driven and compliance requires following a close set of rules in order to make sure everything is done in the correct manner. In simple words it’s quantity V’s quality, for many trace departments in order to achieve one the other will be effected.

“Get it right, and compliance can become a competitive tool, a value-added service to clients. Mess it up and you might just destroy your business” (ICAEW, Information Technology Faculty)

tracehunter’s unique functionally allows for both trace quantity and trace quality to be maximised. This is done through numerous features, which included, total trace agent accountability through complete transparency, automated features, which reduce human error and improve productivity and absolute control over trace agents parameters of work.

Mis-trace and the Debtor Trace Industry

Have a look at our latest press release on the issue of debtor mis-trace:

http://tinyurl.com/445ajgs

tracehunter Background

tracehunter has become an integral part of all our users current trace operations, this is no coincidence. Recently one of our largest clients underwent a full strategic review in the aftermath of the ‘credit crunch’. They came back to us to say not only did we offer the best value for money but we were the only provider they could find to offer the service and functionality to which they had become accustom. We have clients varying in size from 1 to 18 users, below is what they say about us: 

“tracehunter is a gem of the trace world”

“From our perspective the system is perfect for us”

“All of the data sources have their own particular advantages. tracehunter helps use get the best out of all of them”  

“tracehunter offers an unrivalled structured approach to bulk debtor trace”  

“Integral to our trace function in every way”

“You need a system like tracehunter for transparency, organisation, and to keep an eye on trace agents”

“Rules and regulations have undoubtedly increased since I started in trace. tracehunter has helped us stay one step ahead of the game, when it comes to compliance”

“tracehunter offers me as a Trace Manager total transparency”

“For the trace work we do tracehunter is very important”

“Tracers pick up their end of the system within half a day normally”

“tracehunter prevents mis-trace enquiries becoming complaints, I’m able to deal with mis-trace enquiries in a matter of minutes”

“It helps having facts and figures for clients, and tracehunter gives us every piece of data we could want”

tracehunter helps meet the demanding needs of the debtor trace market. tracehunter isn’t a data source but a unique case management system, which has been specifically developed for the debtor trace market. If you would like to learn more about how tracehunter could benefit your trace function give us a ring on 0161 713 2213 and we’ll be happy to answer any questions you may have.