In the midst of a surge of defaults, a major U.S. bank and asset-based lender determined that its existing methods of managing default risk were not delivering as they once did. Like a lot of large financial institutions with strict risk management and customer privacy policies, they were reluctant to engage a partner to conduct more vigorous collection efforts. Yet their existing collections model was not delivering the performance they needed.
An Executive Vice President at the bank, a longtime Asset Compliant Solutions client, shared their difficulties with ACS’s Andrew Pace because of his work helping other asset-based lenders experiencing similar difficulties.
Andrew collaborated with the EVP and ACS team members to quickly develop a solution that would stimulate payment activity, preserve the bank’s good guy reputation, and avoid risk. The solution included in-person visitations, or “Door Knocks,” to get the attention of unresponsive borrowers. The lender also benefited from ACS’s ability to confirm the location and/or assess an asset’s condition of some of the collateral at the same time.
Because the ACS solution didn’t require the bank to conduct a lengthy vendor approval process to authorize third-party financial transactions, the EVP was able to secure approval quickly. And, because of ACS’s vast agent and professional courier network, the solution was implemented quickly, with virtually no implementation expense. Within 30-days the program was under way, delivering personalized, branded bank messages to borrowers who responded more favorably than the bank imagined. The results speak for themselves:
- Total Assets Placed – 1,200+
- Assets Successfully Resolved – 59%
- Assets Referred for Recovery – 41%
- Assets Successfully Resolved in Recovery – 68%
- Success Rate – 84% all in a little more than two weeks
Is your firm ready for ACS Door Knocks? If you’re experiencing any of the following, you may be.
- Your existing team and/or systems aren’t making progress on distressed loans
- You are under-staffed or under-skilled
- Your portfolio is underperforming
- Your brand and reputation are vitally important assets that need protecting
For more information about Door Knocks and other ACS services, Contact Andrew Pace, ACS’s Chief Growth & Client Experience Officer.
