Billing works the way we know it popularly. This is when an operator contacts the debtor to negotiate a specific debt that is in their portfolio. In this model, the objective is to receive that debt as advantageously as possible, taking into account the fact that that person owes a specific company and needs to pay. This model usually yields faster results, depending on the type and amount of debt addressed.
Unlike recovery, credit recovery aims to settle all debts of the same person so that they can return to the market.
What does that mean?
Let’s say the same person has debts in three different companies and they want to buy a financed vehicle. She will need to negotiate with each of these lenders only then to get back credit. This is where the advice focused on credit recovery comes in. For the commercial credit services debt collection agency this is important.
It is their role to contact debtors and to negotiate debts so that they can get credit back in the market. This work is more complex than billing because it depends on more companies and, as a result, takes longer. The approach in these cases is also different. It must be well thought out, focused on the notion that the consumer will return to the creditable market.
Mass collection, as the term suggests, is focused on the number of debtors rather than the debt segment. This means that in a mass portfolio there may be debts from various products such as loans, cards, insurance and some other financial products. This type of charge is very common for banks as they offer diversified services. There are even lenders that include in the portfolio of mass basic debts such as water, electricity and telephone, varying according to the strategy defined.
Unlike mass collection, education charges are extremely segmented. Because of this, the concept of collection most used in these cases is the shared special, that is, what happens internally in the educational institution, as mentioned above. As the institution deals with many cases where the student is still enrolled and attending a course, there is a need to redouble care with the communication that is made, including in cases of collection.
The charge for education also has a specificity that is determined by law, which makes it illegal to prevent a student already enrolled, even in debt, from attending classes. As such, it is safer to keep this type of charge internally, at the risk of losing a student or even facing legal action.