The face of debt recovery has changed quite dramatically in recent years. Those sinister connotations associated with the words debt collection are dissipating as both creditors and consumers begin to see the advantages of a professional debt recovery company. The new trend of debt rehabilitation for consumers is leading to customer retention for creditors. This is particularly pertinent as the economic climate moves slowly towards a recovery.The global economic crisis has not left South Africans unscathed and while we are seeing some steady signs of improvement with interest rates remaining low, I do believe that the economic environment still has a difficult two years ahead.
However, a very positive trend is that overall consumer credit health is improving, which is usually coupled with improved consumer spending activity. This in turn acts as a stimulus for broader economic growth.
This trend has led to creditors changing their approach to arrear collections with many focusing on rehabilitation of debtors, rather than hard-hitting collection tactics. The reason for this is simple. Today’s debtors could still be your customers tomorrow and therefore it makes good business sense to retain them for future growth.
With this in mind, many of our clients have given us the mandate of recovering as much debt as possible, while ensuring that they will still retain the customer. This is most prevalent in the banking sector, but is also becoming more widespread in other sectors as well, such as the telecoms industry.
A professional debt recovery service provider such as Debt-IN provides clients with a number of advantages in this regard: