Takeaways From the Recent CRS Conference: Staying Proactive in Your Recovery
The conference buzz was a mix of thoughts related to the increase in default rates and the need to be proactive in the coming months. Over the past few years, creditors have had a reduced need for litigation. However, it is evident that this strategy must change. Many are predicting, if they have not started to realize it already, a spike in delinquencies and charge-offs in all lines of business. Due to the economic environment and pressures of wallet share, litigation makes the most sense. Proactive creditors are analyzing their current litigation strategy to ensure they have the network in place, along with the staffing to handle the media and affidavit needs. This activity will allow them to stay ahead of the litigation wave and avoid any bottlenecks at the court.
A few additional takeaways from discussions at the conference include:
- Staffing remains the hottest topic this year. Creditors continue to struggle to maintain current staffing levels and are concerned about the ability to meet the growing needs in the near future. Near shore outsourcing was a hot topic of panel discussion.
- Creditors continue to stockpile cease and desist accounts. The portfolios are growing to levels that can no longer be ignored. Creditors must have procedures in place to capture the inventory and then develop the appropriate strategies for handling these matters. Although there are mixed thoughts on the strategy to utilize by many in the industry, litigation remains the most viable option.
- Creditors continue to differ on their opinion of utilizing national litigation networks or regional law firms that cover multiple states. There is no right or wrong answer to this age-old dilemma. The solution comes down to the staffing and oversight an organization has internally to manage a single aggregator or multiple law firms.
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This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
