Are you prepared for the forthcoming tsunami of delinquencies?

LET TSI & CONVERGENT HELP YOU MANAGE THE EBBS AND FLOWS OF CONSUMER PAYMENTS Slow and non-paying accounts have...

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LET TSI & CONVERGENT HELP YOU MANAGE THE EBBS AND FLOWS OF CONSUMER PAYMENTS

Slow and non-paying accounts have been noticeably low in recent years due to corporate policies
and regulations set during the pandemic, as well as an injection of income from government
stimulus payments. With the stimulus and corporate leniency ending, companies are beginning to
see a higher percentage of borrowers default and recovery attempts fail. With other factors now
also fueling delinquencies including market volatility, rising inflation, and increasing interest rates,
now is the time for a proactive approach – an ounce of prevention is worth a pound of cure.

While the majority of U.S. consumer are gradually settling back to more normal patterns of
spending, payment trajectory is pointing toward higher delinquencies and charge-offs. Looking at
the average rates of leading credit card issuers from Q4 2021 and Q1 2022, delinquencies are rising
modestly, with more consumers falling behind on their payments and financial institutions starting
to charge-off a larger proportion of their receivables.

COMBAT WITH EARLY STAGE DELINQUENCY MANAGEMENT

With companies starting to see more charge-off volume and debt than they have experienced in
the last couple of years – and many companies feeling the effects of staffing shortages and
increased wages – outsourcing can play a pivotal role in combatting these industry trends.
By outsourcing your first party, pre-collect receivables to the industry leader in U.S receivables
management, you can start to flatten the wave of delinquencies before aging and charge-off. We
can reduce the cost of resolving debt, while balancing performance and customer experience.