Case Study

Case Study:
LexisNexis® Scoring Solutions

Third-party collections agency achieves shorter recovery cycles and expanded revenues with scoring solutions from LexisNexis®

The LexisNexis scoring models are the leading indicators we use to prioritize work and improve targeting.

Executive, Third-Party Collections Agency Download Full Case Study

Summary

Pinpoint the path to more profitable collections results with predictive analytics.
A third-party collections agency with a strong reputation in the student loans collections market has worked with LexisNexis® since 2008. The agency counts more than 600 colleges and universities, including the Department of Education, as customers.

Challenge

  • The economic downturn impacted recovery rates across all debtor populations, hitting the age 20-30 demographic quite hard and leaving many recent college graduates struggling to secure employment.
  • This age group is also characterized by faster adoption of wireless substitution for landlines, frequent moves and greater overall transience than older debtors.
  • The collections agency was grappling with growing client demands, shrinking margins and a debtor population that was increasingly harder to locate and difficult to recover.
  • The agency had an acute need to quickly determine the pocket of recovery opportunity in the delinquent account portfolios and focus on working those accounts first.

Solution

  • The collections agency turned to a suite of scoring solutions from LexisNexis for tools to bolster their recovery strategy and provide well informed methodology to identify and prioritize the accounts with the greatest recovery potential.
  • The agency was able to quickly identify the most collectable accounts by relying on the alternative data information underpinning the LexisNexis scoring solutions built from over 36 billion public records from over 10,000 sources.
  • Using the LexisNexis Scores as the anchor to other scores and data, the agency designed the foundation for a decision hierarchy that kept resources focused on accounts with the strongest ROI impact.
  • The agency also used specific LexisNexis solutions, including WorkPlace Locator, Property and Possible Litigious Debtor, as filters to further sharpen internal processes and strengthen collections workflow.

Results

LexisNexis scoring solutions delivered the data insights and decisioning tools that enabled this third-party collections agency to tackle the toxic combination of an unprecedented economic downturn and a very distressed debtor population.

By utilizing LexisNexis to design a focused and more agile recovery strategy, the agency effectively weathered the storm and emerged as a stronger, larger and more successful business.

Next Steps

To learn more about LexisNexis® scoring solutions or to receive pricing information, please call us at 866.528.0780 or fill out our simple online form.