CARM-Pro - The most widely used collection and recovery software in US banking.
IBS: Dedicated to Collection and Recovery Software and Automation in the Banking Industry Since 1989
CARM-Pro - Licensed to almost 900 Financial Institutions Since 1989.
ARM-Pro - The most widely used Recovery and Special Asset Tracking software in US Banks and Credit Unions.
CARM-Pro - Credit Union and Bank Collection Compliance Software for todays turbulent times.
CARM-Pro - The most widely used independent bank collection software in US banking.

Collection Compliance: Age-Old Practice, New Challenges

Increasing—and often conflicting—state and federal regulations, along with insurance, investor and/or guarantor collection requirements, may be the one banking industry growth area over recent years. Collection Compliance, a phrase rarely used in bankings past, has become an important and growing contemporary challenge. In todays compressed net interest margins market and slow loan growth conditions, collections may now be brought from a lower-level, back room operation to a highly-visible net income-impacting operation.

Automating Collection Compliance

Throughout our professional lives, there has been an expectation that technology will save time and money. It rarely lives up to expectations.

When it comes to past due account collections, yes, technology can save time and money while improving collection compliance. Insurers, investors, guarantors all have responded to the recent recession with tighter collection requirements. Whether your regulators are your state, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of the Comptroller of the Currency, Office of Thrift Supervision or NCUA, collection regulation compliance is a growing challenge, ripe for automation to solve.

All debtor communication phone calls and letters are more frequent. In cases where insurance is void or an investor or guarantee position is compromised due to collection missteps, documenting that communication is essential to avoid fines and prevent asset protection loss. Compliance failure is now a costly concern.

Leveraging Technology

Envision the confidence your team will have if they could define call parameters for Freddie and Fannie loans within your collection system, knowing that after they set the parameters, your collection system will complete and document all necessary debtor calls; while providing a means for your debtors to get voice-to-voice with your collection staff if desired. No errors, no mistakes; simply accurate and complete collection records perfect for your next collection audit. Your institution achieves collection compliance success and improves net income.

Rule-based letters complement voice messaging to ensure all written correspondence is accurately completed on time and documented. Electronic copies are placed in your institution's imaging system. Again, powerful technology establishes collection compliance while strengthening net income.

Your institution avoids all collection step failure fines (achieves strong collection compliance), you ensure your protected assets are indeed protected, and you reduce your outstanding past-due portfolio; preventing some charged-offs while reducing your Allocation for Loan and Lease Losses (ALLL) and ultimately enhancing your institution's net income. You stabilize and grow net income while tightening collection compliance.

Leveraging technology not only strengthens compliance, it frees staff resources (from mundane, dreaded tasks like dialing-busy, dialing-no answer, dialing-answering machine, misdialing, etc.) to focus on debt collection negotiations and charged-off debt recoveries, growing income with no new fees in tight lending conditions.

Contact IBS Today

If any of these challenge areas pertain to you, if they are concerning enough to do something about them, call (603) 410-5710 or email us on the Contact Us page so we can spend a short time on the phone to collectively determine if we can help.