Posts Tagged ‘Accounts Receivable management’
On February 22nd, 2010, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act took effect. The CARD Act had one major goal in mind: to try to put a leash on credit card practices and impose limits to the fees that credit card companies charge consumers. It was designed with credit card holders in mind, limiting the amount of credit made available to them in this recession “for their own good.”
Due to the life changing CARD Act, a number of financial institutions have modified their business models by reducing potential risk to cardholders. They have dropped or restricted some borrowers with a poor financial history, tightened up credit lines, and are marketing less. Analysts predict credit limit reductions to have two main impacts for the collection industry.
One result of the CARD Act has been the setting of restrictions on the average size of accounts that are placed for collection. This, coupled with debtor’s behavior these past couple of years, where people generally spent savings and maxed out personal loans and home equity, raises eyebrows and concern, because for many consumers, credit cards are the only short term credit that is available to them at this moment.
Another major impact of the CARD Act is a result of the provision that consumers are not able to pay off one credit card debt using another card. While this may help consumers to be more fiscally responsible, this obviously has massive ramifications for the collection industry. Researchers and leaders in the field hypothesize that the best way to deal with the enormous changes that have ensued is to remain flexible and to be creative. In addition to the same old telephone calls and collections letters, the internet can be looked into as an option for payment.
Researchers also remind us of a few ideas that we, as collection professionals should remember about the CARD Act. Excess payments should now go to pay off the accounts with highest interest balances first. The CARD Act also gives consumers the capacity to set their own credit limits that might be less than those set by the creditors, and marketing credit to college students and giving credit card access to people under twenty one will now be severely restricted.
Mallory Megan works for Rapid Recovery Solution and writes articles on national collection agencies. This article, What Every Collection Company Should Know About The CARD Act is available for free reprint.
As of 2009, bankruptcy filings that were new increased by over thirty five percent in just one year. Although it may seem like a dismal sign, a good way to look at it is that all of these people are on their own paths to rebuilding their credit scores and ultimately, financial freedom. We have all seen commercials with “people just like you and me” urging us to go to whatever website and check on our credit score. We know that if the number is high, it’s a good thing. It it’s low, it could mean trouble finding a loan, getting a job, or a new place to stay. But just what is a credit score?
Your credit score is summed up in one (hopefully!!!) three digit number that is formed from a statistical analysis of your personal credit file. Credit scores are here to give you a major headache, and for the banks to determine your ability to take on debt and repay a credit obligation. That’s why credit card businesses and banks will assess your score to figure out how much credit they want to offer you and at what interest rate.
So how is your score determined, you might ask? The Fair Issac Corporation, or as you might know them, FICO, was the first organization to build a scoring system in 1958. The report recently underwent a makeover (FICO 08) but it is not utilized by all agencies. In this new, improved FICO 08 version, minor credit delinquencies aren’t counted against you when you for the most part do a good job repaying your debts.
There are five questions that a credit score asks. What is your payment history? How much debt do you currently owe? Just how long have you had credit? How many times have there been credit inquiries made on your report? And what type of credit do you have? So you screwed up. Just how long will negative marks have an impact on your credit score? Well, that depends on the type of information. Plain old negative information can stay on your credit report for up to seven years. In the case of bankruptcy filing it can stay up to ten years. Here’s where we get into the creepy big brother aspect of credit reports. Every individual has a personal credit file, and what this means is that the impact from person to person will affect each differently.
If you are worried about your financial situation, would like to know more or are considering bankruptcy, it is in your best interest to seek out the advice of a financial planner. One that works for a fee is preferable, because they will have your best interest at heart and not their commission. Good luck in your financial journey!
Rapid Recovery Solution is a medical collection agency. You can get a unique content version of this article from the Uber Article Directory.
If the person in debt agrees to pay, the bill collector will record this commitment and will check up later to make sure that the payment was made. If a debtor does not pay, the collector will prepare a statement about their delinquency for the credit department of whoever they work for. In extreme cases, collectors may call for repossession, hand over the account to an attorney or disconnect service.
Collectors need to be careful to follow the Federal and State laws that are applicable because people’s financial problems can be a sensitive issue. The Federal Trade Commission states that a collector must positively identify the person who owes money before they can announce that the purpose of the call is to collect debt.
The bill collector will then issue a statement, sometimes called a “mini-Miranda” that tells the person in debt that they are a collector.
Collectors also have to follow the state laws that state how they must proceed. A lot of companies use electronic systems now to help bill collectors remember all of the laws and regulations regarding each call.
Collectors use computers and an assortment of automated systems in their jobs. Companies will keep track of their accounts by using computers, and collectors are able to keep track of collection attempts in the past and other information in notes on the computer. As with most call centers, collectors use headsets in lieu of regular phones. Automatic dialing allows bill collectors to work efficiently and quickly and with no chance of dialing the wrong number. Typically, in house bill and account collectors work in an office environment, people who work for a third party agency may work in a call center type environment.
The work has the capacity to be stressful; people get confrontational when they are asked about their debts. The best collectors have to face rejection regularly, but still be ready to make their next call in a positive voice. Fortunately for them, some customers appreciate help in resolving their debts.
Rapid Recovery Solution is a commercial debt collection agency.
Seeing as debt at an all time high, owing a debt could seem overwhelming. Many people have looked to the internet for an answer and without a doubt they have seen advertisements claiming debt relief as a quick fix. Engaging as these ads may appear to be, it is crucial to be on the lookout for the validity of the claim.
A good deal of these promise a quick fix, but that quick fix might be bankruptcy. Yes, bankruptcy is one way to address your financial problems, but in most cases it should be a last resort. The fact that you claim bankruptcy remains on your credit report for ten years which means that your chances of getting credit, employment, a place to live or insurance are significantly lowered.
It’s always a good idea to consider other options before deciding to file for bankruptcy. Talk with your creditors. Many times a re-payment plan can be worked out that is modified or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans.
When you are thinking about a second mortgage, be cautious. These loans will require your home as collateral. Bankruptcy also has the capacity to stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually take away child support, fines, taxes, alimony and in a few cases student loans.
It will not usually allow you to keep your property if your creditor has a security lien or mortgage that has not been paid. A relatively recent tweak in bankruptcy laws creates certain hurdles that you must overcome before you can even file for bankruptcy, no matter what type of bankruptcy. First, you have to get credit counseling from an organization approved by the government within six months before filling. Also in certain cases you have to pass a test that requires that you confirm that your income doesn’t exceed a certain amount.
Mallory Megan works for a debt collection agency. She also writes articles on business, finance, the credit industry and collection agencies. Get a totally unique version of this article from our article submission service
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Flourishing numbers of patients that cannot pay their medical bills due to the economic plunge will be the greatest challenge to hospitals going forward, according to more than half (54%) of those answering a survey conducted this month by MedAssist.
The survey, which canvassed health-care executives attending HFMAs Annual National Institute in Seattle, Wash., June 14-17, showed that 1 in 3 respondents believe the next big challenge facing providers will be changes to the American health-care system as a result of President Obamas health-care reform.
Additionally, 80% of those surveyed speculate health-care providers will need more aid administering their revenue cycles in the coming year. Closely reflecting this wide consensus, more than 80% of respondents chose outsourcing financial/revenue cycle services and establishing new IT programs ” over cutting fixed cost ” as the best strategies to reduce hospitals administrative costs. At the same time, three out of four (75%) executives acknowledging the survey believe customer-facing functions (e.g., patient access services, financial counseling) should continue to be handled by providers staff.
Its clear that health-care providers are facing a perfect storm that combines growing costs, declining revenues and industry reform, said Michael Shea, president of global health-care solutions and CEO of North America for MedAssist. Whats also clear is that providers will need to become more innovative than ever in finding ways to boost economic efficiencies without lowering standards of care.
The survey confirms our belief that certain functions are core competencies that belong in the domain of health-care centers, while other areas will continue to be addressed most effectively by experienced providers of financial and revenue cycle management services, said Brenda Snow, executive vice president, strategic planning and analysis at MedAssist. The question is how soon health-care providers can make this transition.
Asked which categories afford the greatest savings opportunities for hospitals, 29% of respondents pointed to improved technology (e.g., electronic health records, computerized physician order entry), while 26% mentioned preventative care and chronic disease management (e.g., asthma, diabetes). Survey participants also cited streamlining administrative costs and reimbursement contingent upon quality outcomes (both at 21%) as viable areas for cutting costs.
Mallory works for a debt collection agency. Also, she writes stories on business, finance, and collections. .
iVolution Medical Systems, a West Hampton, NY-based health care systems firm, is taking a different approach. The four-year-old company, started by former Wall Street consultants to the health care industry, entered the medical receivables space by acquiring experienced billing and collections companies. First there was Professional Health care Billing Services (PHB) of Palm Springs, California in March, and then Continental Collection Services of New York, earlier this month (iVolution Medical Systems Acquires Continental Collection Services, May 13).
Despite the regulatory perplexity surrounding the health care industry, iVolution co-chair and chief financial officer Vince Pipia told insideARM that the medical billing and collection industry is ripe for consolidation. We think (medical billing and collections businesses) are all good cash generators, and they have a coveted relationship with physicians, Pipia said.
Specifically, its that relationship that Pipia wants to capitalize on to provide integrated billing and collections services to health care providers as they transition to health care information systems. Electronic medical records, billing, e-prescriptions and instant messaging are among the solutions offered by the company. Our goal is to build and grow medical billing to cross-sell technology.
In the year since iVolution introduced its products to the market, Pipia said some of iVolutions technology is gaining popularity among its pediatricians. Likewise, iVolutions billing and collections clients are pleased by the benefits of its free instant message technology.
Since conversion to electronic medical records was titled as the one change that the entire health care industry agrees can boost efficiencies and lower costs, dozens of companies have been working to develop technology solutions. Still, only 8 % of health care providers operate fully functioning electronic medical record systems, Pipia said.
Most EMR (electronic medical records) are expensive, Pipia said. Analyst Michael Klozotsky said he expects more ARM industry consolidations and acquisitions as some company owners look to depart from the business to avoid regulatory changes that will come with health reform. However, the health industrys inclination to use more health information technology and the Obama administrations commitment to helping fund the transition leaves an abundance of opportunity for companies that can help health care providers comply with new technology mandates, he said.
Mallory works for a debt collection agency. Also, she writes articles on business and finance, and collections. .
The extent of a cash payout on a structured settlement depends largely on the dollar value placed on a claimant’s pain and suffering and terms offered by buyout firms. In a structured settlement, claimants can wait months and years to receive rectification for personal injury caused by automobile accidents, or included in trust funds, or annuities.
By bargaining with a funding agency that provides a lump sum payment for a structured settlement, individuals and families can appreciate financial freedom and accomplish some lifelong dreams. A lump sum cash payout on structured settlement can compensate an annual income for disabled persons, provide money for college, or support funds to consolidate outstanding debt, such as home and automobile loans or charge card accounts.
In a doubtful financial market, cashing in today on future income could mean the difference between staying financially steady and bankruptcy. Part of a cash payout on structured settlement can be used to purchase more secure, high-yield investment instruments, such as commodities mutual funds, certificates of deposit, or nearly invincible, government-backed U.S. Treasury bills.
Many funding agencies charge as much as 50 cents on the dollar to convert settlements to cash. To determine whether losing up to 50% of future cash flow is a wise choice, claimants should consult with a banker, insurance agent, or financial planner.
Claimants should skim through on-line funding agencies to obtain various free quotes on what it will take to cash in recurrent payments before committing to any one agency. Intelligent money management will certify that claimants not only receive adequate and equitable compensation, but also that monies will provide a steady, safe income stream for a number of years.
Insurance companies are grasping the idea that men and women are living longer, more productive lives. For that reason, a cash payout on structured settlement can be a real gamble. Some suggestions for handling lump sum payments include using funds to eradicate debt, especially big-ticket items, such as negligent back taxes, outstanding medical bills, or student loans. Before taking the dive to sell structured settlements, recipients need to ask: How much money will be accumulated by waiting on periodic payments? How much indebtedness would a lump sum payment eliminate? In the final breakdown the decision to negotiate a cash payout on structured settlement plans is a personal one.
Mallory is employed by a debt collection agency. She also composes stories on business and finance, and collections. .
A Debt consolidation program begins with appraising your financial positioning. This procedure involves an in depth analysis of your financial standing. That analysis will aid you to evaluate whether it’s more beneficial to file for bankruptcy or go for a debt consolidation program. A debt consolidation analysis will calculate the debtor’s potential savings through the program.
When a deal is finalized with the debt consolidation company and the debtor. The next step is for one of the counselors to contact the creditors and work out a reduction in the interest rates and monthly payments at an amount that will be affordable to the debtor.
Through arbitration with the creditors, the debt consolidation company for the most part marks down or cut out the interest charged. The balance owed to-wards the creditors is reduced and they can give the debtor a reduction in even the principal amount.
The Debt consolidation program will also aid the debtors by getting the creditors to halt the legal actions which they were bringing against the debtor which means they can no longer consume the debtor’s income nor can they take the debtor to court. Also this starts bringing up the credit rating of the debtor because now the debtor is repaying the debts under the new agreement.
With this method of debt relief, the debtor will no longer have to answer embarrassing phone calls from his creditors. The debtor will not receive any bills or pay the creditors directly. The debt consolidation program will directly take control over the creditors. The debtor will just need to pay the debt consolidation company a single amount every month according to the budget which was agreed upon with the debtors. So there is no need for any interaction with the creditors.
Most of the time these systems are free to the debtor because the fees are paid by the creditors, since they would rather get something in return than lose all the money that the debtor owes them. Also, programs like this work for those with good or bad credit. It is a great solution for debt reduction to use a debt services company or consolidator that uses this method.
Mallory is employed by a debt collection agency. She also writes stories on business, finance, and collections. .
