How does Fraudscreen benefit pre-collections processes?
Pre-collections is the process by which accounts with a high risk of future default, but not yet in arrears, are reviewed to improve the chances of collection if they default. The review might include ensuring that data resources, such as employer details and phone numbers, are complete. In some cases, lenders obtain bureau data on exposure to other lenders debts for these accounts, and even contact the customer to offer friendly help. The problem has been the high level of ‘false positives’ in this process. Often the customer does not default, so the pre-collections process was an un-necessary expense. Fraudscreen Housefile codes provide an economical and effective way to improve the precision of pre-collections processes.
