The word “Scoring” is being used here to indicate that each account has a value (score) in its collectability when compared to other accounts. Scoring models are developed through analysis of social, economic, demographic, and debtor account activity information. In the collections world, scoring models provide more than a credit score - they provide an all important recovery score. This score is weighted by recovery data indicators and is highly predictive of a debtor’s ability and willingness to pay a given debt.
Recovery scores identify the most profitable accounts to work and help a collector determine the appropriate amount of effort to expend on any given account. Recovery scores provide sound evidence for distribution of accounts to the right outsourcing processes, the right collectors, and the right recovery strategies.
By using scoring, additional revenue and compliance can be gained by applying recovery efforts to those accounts most likely and able to pay, thus eliminating or significantly reducing redundant and unproductive collector efforts.