Money and debt management update

NZ Blacklist www.nzblacklist.co.nz Online debt collection solutions

Orlando, FL — The Federal Reserve reported recently that consumers cut debt by a record $21.6 billion in July 2009, an indicator, in part, that Americans are becoming more aware of their personal finances and concerned about their long-term financial stability. The news prompted Etta Money, president of InCharge® Debt Solutions (IDS) to comment, “We hope the great news from the Fed will translate into a trend in which consumers commit more of their resources to paying off their debts and become more focused on money management.”

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Courts Slam NZ Property Developer

NZ Herald reports

Queenstown developer Rod Nielsen’s business practices should be restricted and he must bear responsibility for commercial irresponsibility, says the High Court.

After declaring him bankrupt over a $14.5 million debt owed to failed finance company Bridgecorp, Justice Paul Heath, in the High Court at Auckland, criticised Nielsen’s “speculative” business attitude, The Dominion Post reported.

Nielsen, who now lives in Las Vegas, originally borrowed $7.5m from Bridgecorp in 2005 to fund the Lake Esplanade development in Queenstown, which was never completed.

Nielsen operated a speculative business in good financial times but did not make adequate provision to deal with any adverse financial conditions, Justice Heath said.

“Property developers cannot do business on the basis that the market will always be buoyant. Mr Nielsen must take responsibility for being, at best, imprudent or, at worst, commercially irresponsible.”

Bridgecorp secured a judgment against the developer in mid-2008 for $13.7m owing but Justice Heath felt Nielsen had “made no real efforts to settle”. Read more

Debt Reduction and Debt Advice

NZ Blacklist www.nzblacklist.co.nz Online debt collection solutions

Every debt is different, circumstances behind it as are the debtors themselves. Before approaching an agency or NZ blacklist, have a look at the following advice and see if you can achieve collection without having to use a collection service.

PREPARE: Review the paperwork on the debtor before making the call. Know the history of the account, credit record, the promises kept/broken. Have all records in front of you, ready for reference.

ATTITUDE: Adopt a straight, professional business-like attitude. You have a contract, you delivered the goods, money is owed, and you have a right to expect payment. Never let it become personal. Don´t yell or raise your voice; and NEVER swear. Don´t threaten; legal action is your recourse.

CONTACT: Make sure you´re talking to the right person. Don´t let the individual brush you off with “You´ll have to talk to the bookkeeper.” Identify the person who will pay the bill. If you can´t get through after several calls, tell the secretary that you know your calls are being screened. Indicate the purpose of your call and if necessary give deadlines.

CONTROL: Control the conversation. Keep it focused on the debt and on the repayment schedule. Don´t let the customer sidetrack you with personal history, excuses, etc. Remember, the object of your call is to collect money, or get a commitment, not to become buddies with the customer or win arguments.

FLEXIBLE: Be ready to adjust to the situation. Think about the kind of customer you´re dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a customer´s circumstances.

NOTES: Keep detailed, accurate notes of every contact with the customer. Probe for further information on the customer. Notes of these contacts will help you in subsequent phone calls, and may be invaluable in litigation. Good notes will also help in further credit decisions, or in cases where skip tracing may be needed.

PRODUCTIVE: Keep contact brief and to the point. This is a business call, not a social one. View your efforts on a ratio of time expended to results achieved. Long conversations probably mean the customer is stalling you, or trapping you in the buddy syndrome.

PRECISE: Never leave a contact open ended, such as “We´ll talk next week,” or “I´ll send what I can.” Every contact should result in a commitment to payment, of a specific amount, by a specific date, even the check number the customer is using to pay the pledge.

TIME: The longer an account is held, the less likely it is that it will be recovered. If payment or a payout is not arranged within 60 days, place the claim with NZ Blacklist or start legal proceedings.

PLACEMENT: Contact NZ Blacklist and start your road to successful debt collection

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Mafia Justice and Crocodiles

NZ Blacklist www.nzblacklist.co.nz Online debt collection solutions

ROME — Here’s another of the Mafia’s trademark offers-you-can’t-refuse, pay or be eaten by a crocodile.

Italy’s anti-Mafia police unit said Wednesday (local time), that it had seized a crocodile used by an alleged Naples mob boss to intimidate local businessmen from whom he demanded protection money.

Officers searching for weapons in the man’s home outside the southern Italian city last week found the crocodile living on his terrace, said police official Sergio Di Mauro.

The crocodile, weighing 40 kilograms and 1.7 metres long, was fed a diet of live rabbits and mice, Di Mauro said.

He said the suspect, an alleged boss in the Naples-based Camorra crime syndicate, used to invite extortion victims to his home and threaten to set the animal on them if they didn’t pay or grant him favours.

The man was not arrested but placed under investigation for illegal possession of an animal, Di Mauro said.

Investigators are also working on extortion charges against him.

Di Mauro said the animal is believed to be a caiman, a species that lives in Central and South America, and it is not yet clear how it got to Italy.

The crocodile was placed in the care of Italy’s forestry service.

- AP



Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Debt and personal finances

NZ Blacklist www.nzblacklist.co.nz Online debt collection solutions

Orlando, FL — The Federal Reserve reported recently that consumers cut debt by a record $21.6 billion in July 2009, an indicator, in part, that Americans are becoming more aware of their personal finances and concerned about their long-term financial stability. The news prompted Etta Money, president of InCharge® Debt Solutions (IDS) to comment, “We hope the great news from the Fed will translate into a trend in which consumers commit more of their resources to paying off their debts and become more focused on money management.”

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Paying for debt collection advice?

NZ Blacklist www.nzblacklist.co.nz Online debt collection solutions

A recent stroy from the UK shows that people may be paying for debt advice which could possibly be available for free through outher sources. Please see our free links for debt advice on NZ Blacklist by clicking here.

Story:

People in debt are being charged for advice that they could be receiving for free, according to an industry insider.

Jessica Brown, a spokesperson from talkaboutdebt.co.uk, said that research by the company showed that up to 48 per cent of people in debt have paid money for advice on how to resolve their situation.

She described those in severe financial situations as a vulnerable group who needed to be given the right support and – considering their circumstances – it should be free of charge.

“We completely support any steps by the government to provide better protection for indebted consumers, with our recommendation being the implementation of an industry code of practice,” said Ms Brown.

Last week, the government published a consultation paper called Debt Management Schemes, which will review solutions for both creditors and debtors.

Ms Brown expressed her delight that central government has decided to look into the problem of firms charging people for debt advice.

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Comsumer debt on rise in UK

NZ Blacklist www.nzblacklist.co.nz New Zealands online debt collection solution

Britain’s level of debt increased again the second quarter of this year, with almost double the level of borrowing compared to the first quarter of 2009.

Consumers borrowed £5.5 billion between April and June, nearly twice as much as the £2.9 billion borrowed between January and March, said financial advice site unbiased.co.uk.

Savings levels grew to £21 billion in the second quarter, up from a record low of £14 billion in the first three months of the year.

Despite the rise in saving, the amount represents a 70% fall compared to saving levels in the year ago period.

Unbiased.co.uk said the drop in savings is due to an increase in the number of people choosing to pay off personal debt rather than save.

“After the topsy-turvy behaviour of financial markets and a deluge of contradictory reports on the economy in the media, it is not surprising that many consumers may feel uncertain about their financial standing,” said David Elms, unbiased.co.uk chief executive.

He added that the UK risks “heading down the debt path again” unless consumers rein in their addiction to credit.

“However, it is encouraging to see that Brits are beginning to save again, despite the low interest rate environment,” he concluded

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

NZ Blacklist www.nzblacklist.co.nz Superior Debt Collection Solutions

Money News .co.uk reports complications with personal debts on the rise

Personal debt problems have become more complicated in the past few years because of changes in income and people having mortgage arrears, says a debt expert.

Frances Walker, spokesperson for the Consumer Credit Counselling Service (CCCS), said that it is encouraging see that people are starting to pay off their debts, but in some cases it can be very hard to find a solution.

She pointed out that around 30 per cent of the people that come to the CCCS for advice on how to deal with their debt will end up having to find a way to make more money, plain and simple, but this is tricky with the level of unemployment at the moment.

“Also people’s debt problems are more complicated now than they were a few years ago because they often have mortgage arrears and have experienced a drop in income,” she added.

Ms Walker made her comments following the release of figures by the Citizens Advice Bureau, which show that there has been a 99 per cent increase in the number of enquiries about jobseekers allowance since this time last year.

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Bankruptcy or Settlement?

NZ Blacklist Superior debt collection solutions www.NZBLACKLIST.com

(MADISON, Wis.)—A recent analysis found the number of Americans filing for bankruptcy continues to rise. The Association of Settlement Companies (TASC) today reminds consumers who are struggling to pay off their unsecured debt that debt settlement remains a reliable tool for relief, especially when compared to taking the dramatic step of filing for bankruptcy.

According to a report from Automated Access to Court Electronic Records, bankruptcy filings in the United States now exceed 6,000 per day. Reputable debt settlement companies such as those that are a part of TASC—a non-profit watchdog for the industry—can help consumers avoid being a part of that statistic. One reason is that debt settlement companies can often negotiate with creditors to settle for less than the full amount owed.

“Every day the debt settlement industry assists consumers in navigating through their financial straits,” Chris Kesterson, president of TASC, said. “Our staff members are knowledgeable and experienced in working with creditors, who are willing to take a settlement over getting nothing with bankruptcy.”

Debt settlement provides consumers with a three-year plan to get out of debt without the 10-year stain of bankruptcy on their credit report. Bankruptcy also is time-intensive and can be difficult to apply for, if a consumer even qualifies, Kesterson added.

To illustrate debt settlement as a growing choice over bankruptcy, TASC revealed recently that the industry returned more than $2.2 billion in consumer debt last year. In addition, TASC’s research shows more than $500 million in settlement funds saved by consumers are available to credit card companies today.

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Path of Debt

NZ Blacklist Superior debt collection solutions www.NZBLACKLIST.com

Consumers are beginning to borrow again which means they are ending up down the debt path again, according to Unbiased.co.uk.

David Elms, chief executive of the comparison website, made his comments following news that people borrowed nearly double in the second quarter of 2009 than they did in the first quarter.

He pointed out that 2008 saw many people repaying much of their debt because of the financial turmoil that went on, but that this trend has not continued.

“The first half of 2009, in contrast, has seen consumers head back down the debt path as they shift back into borrowing,” said Mr Elms.

In the same report it also showed that savings levels have increased from £14 billion to £21 billion in the same period.

Industry commentator Chris Tapp recently claimed that the price of debt has gone up, because people are finding it harder to get work in order to clear credit cards and loans.

Debt Collection, Debt Collectors, Bad Debt Recovery, Terms of Trade, Credit Reporting, Legal Services, Skip Tracing, Tracing and Investigative Services

Economic Recovery?

http://www.nzblacklist.com Superior debt collection solutions

SYDNEY – The Reserve Bank of Australia (RBA) believes it is “too soon” to be certain that the global economy is on the road to recovery, the central bank’s latest board minutes show.

The RBA left the cash rate unchanged at three per cent for the fifth straight meeting on September 1, as board members pondered whether a raft of local and overseas data presented over the previous month was confirmation of an economic recovery.

“Members concluded on balance that the global economy was most likely on a sustained, if modest, recovery path, though it was still too soon to be confident of this assessment,” the minutes said.

The minutes, published today, repeated comments from the August board meeting saying that if the improved prospects for economic growth were realised, the central bank would at some stage lift the cash rate from its current 49-year low.

“At the previous meeting, members had agreed that if the economy continued to evolve as in the latest forecasts, the Bank would in due course need to adopt a less expansionary policy stance,” the minutes said.

The information at this meeting suggested that economic conditions were indeed evolving broadly in that way.

“Nonetheless, some uncertainty remained about the outlook both abroad and at home.”
The minutes said information presented to board members at the meeting “showed that the situation in the global economy was continuing to improve”.

Gross domestic product (GDP) in the Asian region had been much stronger than elsewhere, while there were some “upside surprises” in countries such as Germany and France, the minutes said. Read more

Debt being paid of in record time!

NZ Blacklist, Superior Debt Collection Solutions www.nzblacklist.com
Inside Arm reports ;

U.S. consumers are paying off debt at a record pace as the recession lingers. In the past 11 months, nearly $70 billion has been erased from credit card balances, a trend that the ARM industry may need to watch.

Credit card debt outstanding in the United States has fallen by nearly $70 billion in less than a year and continues its downward spiral, according to a government report released yesterday.
The Federal Reserve said Tuesday that consumer credit outstanding in the U.S. declined by $21.5 billion in July, the largest monthly drop on record. The annualized rate of decline, 10.4 percent, was also the largest on record.


The Fed, in its monthly G.19 report on consumer debt, said that revolving debt – mostly credit cards – fell at an 8 percent annual rate in July, or by $6.1 billion. July marked the 11th straight month of declines in credit card debt.

In those 11 months, consumers have shed nearly $70 billion off credit card balances. Banks have also had a hand in the decline, tightening credit lines for their customers.


The trend is one that the accounts receivable management industry, particularly credit card collectors, will need to monitor, according to Mark Russell, director at ARM industry advisory firm Kaulkin Ginsberg.


“ARM companies that specialize in credit cards have been swamped with work this year,” Russell noted. “But if credit card debt continues to contract, there may be fewer accounts to work down the road.”


Collection agencies said that they had more work in the second quarter of 2009 in insideARM’s latest Quarterly Credit & Debt Collection Industry Confidence Survey. Of the collection agencies that said they specialized in financial services work (which includes credit cards), 63.4 percent reported an increase in account placements in the second quarter, up slightly from the 63 percent that answered the same way in the first quarter. But those numbers were significantly higher than the 53 percent that saw an increase in account placements in the second quarter of 2008.

In July, non-revolving debt – like that found in auto, student and personal loans – paced overall declines in consumer credit outstanding. The Fed said that non-revolving debt contracted by $15.4 billion, or at an annual rate of 11.7 percent. The G.19 report does not cover real estate loans.

The decline in non-revolving debt for July will likely prove to be an anomaly, as consumers probably held back on auto purchases for most of the month until the government’s “Cash for Clunkers” program was launched on July 24. As such, the Fed’s non-revolving debt in August is expected to show a significant increase. Student loans also began to roll out in earnest in August.

Taken overall, July’s drop was unexpected and far exceeded economists’ predictions. Economists had forecast consumer credit would drop $4 billion in July, according to the median of 31 estimates in a Bloomberg News survey. Projections ranged from declines of $12 billion to no change from the previous month.

Total consumer debt outstanding in the U.S., excluding real estate loans, stood at $2.472 trillion at the end of July, down from its all-time high of $2.581 trillion at the end of July 2008.

Successfu small debt collection system in USA

NZ Blacklist, superior debt collection solutions www.nzblacklist.com

For companies with subscription or annuity-based business models, low balance collections have traditionally occupied the lowest position on the accounts payable totem pole.

That is, until now.

With the credit crisis driving companies to improve cash flow and revenues, Nashville, Tenn.-based Sitel Corp., a global Business Process Outsourcing (BPO) leader, recently demonstrated an innovative new service that substantially reduces small balance collection costs while increasing low balance collections overall.

The year-long demonstration at one of Sitel’s largest retail clients focused on collecting an average outstanding customer balance of only $33.07. Upon completion, the client cut average collection costs per customer by nearly 50 percent and increased the company’s annual collections by nearly $7 million.

“In this economy cash is king, and small balance collections in the $25 to $200 range represent a huge opportunity for retailers and other annuity-based companies,” says John Farinacci, COO of Sitel’s Accounts Receivable Division. “High balance collection is a very agent rich environment. But you can’t afford agents or a third party for small balances. You need a more affordable and effective way to collect, and that’s exactly what we’ve developed.”

New approach

Sitel’s Low Balance Collection Solution targets retail, financial services, utilities, communications, and media and entertainment companies with subscription, periodic payments, and/or repetitive payment business models.

By blending its global collections expertise with advanced interactive voice response (IVR) technologies, the service replaces the traditional series of small balance mailings — letters, post cards or email — with more affordable and effective interactive voice messaging. The solution provides a consistent, non-threatening customer care experience that allows the client to retain important customers while collecting a greater number of low balance payments early in the process.

“Studies have shown that most customers are comfortable with automated interactions,” Farinacci says. “That’s important because these are ongoing customer relationships and customer retention is obviously huge to a retailer. With this solution, we keep the customer experience high by allowing them to interact in a non-pressured environment.”

After providing a friendly reminder that a balance is due, the IVR technology allows the customer to pay all or part of the balance immediately, either through a touch-tone phone, connecting to a live agent, or the company Web site.

“Letters, post cards, email or SMS are fine for a basic notification, but IVR allows you to collect during the interaction and early in the collection process,” Farinacci explains. “The call might inform the customer that a bill has been sent and they have 20 days to pay it, or it might call attention that a balance is due or beyond due, or that a product hasn’t been returned. All they have to do is push a couple of buttons to pay the balance, opt out to an agent, or promise to pay on-line.”

Lower costs, improved collections

The demonstration project, which took place in 2008-2009, involved a large consumer facing organization with literally millions of subscription-based customers. Collection notification, agent interaction and balance delinquency costs were all significantly reduced, while cash flow and revenues got a lift.

First, Sitel transitioned the company away from its traditional post card and passive interactive voice strategy to the more effective automated, hosted and managed IVR system. That alone decreased the cost and number of transactions and saved the client roughly $400,000.

“Companies traditionally send their letters or post cards at specific intervals, but candidly, that is not very effective. At 5 to 8 cents a minute, the IVR call is not only more productive, but very inexpensive in comparison to a static post card, which translates to 35 to 45 cents per item, probably more,” Farinacci explains. “For the demonstration, we sent a letter at the outset, and then followed up with a series of IVR calls. We can make five calls at an average cost of 30 cents, while five mailings cost on average roughly $1.75.”

At the same time the solution generated some $2.9 million in additional collections, increasing the client’s overall liquidation rate by 4 percent. Since the IVR calls were so much more effective in generating early payments, the solution also decreased the number delinquencies that ended up in third party collection, with approximately $1.3 million in savings. Finally, the solution decreased the client’s roll rate by 3 percent as well as its days sales outstanding (DSO) and delinquency rates, resulting in a $2.1 million improvement in bad debt.

In summary, the company reduced its annual collection costs by $1.7 million and increased cash flow by $5 million, resulting in an overall return on investment of 8.5 percent, or $6.7 million.

With the current economic environment both creating an increase in low balance delinquencies and making it difficult (if not impossible) for companies to tap the capital markets, this new approach offers subscription or annuity-based businesses a viable way to boost cash flow and revenues.

“The small balance market has always been neglected because the balance threshold does not work under traditional methods,” Farinacci concludes. “This solution helps a company collect, collect early and collect effectively.”

Debt Busting Tips

NZ Blacklist www.nzblacklist.co.nz

The newspapers are telling us mortgagee sales are happening in record numbers, and there is no doubt some are finding the going tough. The problem is usually a familiar one – too much debt and too little savings. For many people who want to live with the jingle of coins in their pocket and no or low debt, choosing to live off the smell of an oily rag is the answer!

For those struggling under the weight of a mortgage here are some debt-busting oily rag tips : Read more