A legal strategy for the recovery of delinquent consumer receivables has the benefit of producing a stable and long-term (8+ years) revenue stream. We want to take a minute to examine that benefit at a time when the US economy is experiencing the longest growth period on record. The consensus is that a slowdown is around the corner, we just don’t know when or how severe it will be. Starting a legal recovery program provides a hedge against such uncertainties for the following reasons:
- Recovery comes primarily from wage garnishment and bank account garnishment. In difficult times, the recovery from a legal program does not decline as much as an agency recovery program that relies only on voluntary payments.
- The filing of a lawsuit removes concerns that the statute of limitations will expire, rendering the account virtually uncollectable, and judgments awarded are often enforceable or renewable for up to 20 years or more.
- The CFPB and Federal oversight has dramatically changed the shape and fundamental practices of the industry and we feel it’s been for the better. It has significantly raised the bar for all involved while raising the cost of entry to strategically implement a litigation strategy. Collecting the most amount of money in the least amount of time is no longer atop the value chain. To stay ahead of an anticipated economic downturn and to maximize the value of your portfolio while ensuring it’s done in a way that coincides with the CFPB’s best practices, a managed network approach assures maximum return with minimal risk. All of this can be done with zero disruption to the existing business while converting the fixed costs associated with building, maintaining, overseeing a program to variable costs strictly tied to performance.
Listen to Michael Lamm extol these and other benefits to litigation in his latest podcast and Brad McCurnin and Rob Yarmo of Harvest Strategy Group effectively present the essential role litigation plays to fully recognize the true value of your receivables:
Episode 21: How Much Is That Firm in The Window? by Michael Lamm, Managing Partner – Corporate Advisory Services
Litigation Value Chain by Brad McCurnin, COO – Harvest Strategy Group
Consumer Litigation Recovery in an Age of Increased Regulatory Scrutiny by Rob Yarmo, EVP – Harvest Strategy Group
