Minnesota based Jefferson Capital Systems, LLC began a long standing partnership with the United Way in 2002 to give back to the community as part of its bedrock principles of listening, identifying solutions, and “doing the right thing.” Jefferson Capital and the United Way have achieved this vision through numerous initiatives.

Not only does Jefferson Capital host events such as cookouts to raise money for United Way, but it also makes corporate donations and incentivizes its employees to give by offering fun rewards and experiences. After donating more than $600,000 over the past 20 years, Jefferson Capital and the United Way plan to continue the partnership well into the future.

Below, Jefferson Capital Systems reviews how its corporate ethos is complimented by maintaining its relationship with the United Way, through giving back to employees and the community.

How United Way Gives Back to Others

The United Way is one of the largest 501(c)3 organizations in the United States. It works alongside nearly two thousand fundraising operations to help those in need. The United Way helps individuals and families in need of housing, healthcare, education, and more. However, this work alone is not what attracted Jefferson Capital’s attention.

What really stood out to Jefferson Capital was the way that the United Way truly listens to people’s needs and then works one-on-one with them to provide effective solutions. According to firm president Mark Zellmann, the United Way’s vision and impact aligns with the manner in which Jefferson aims to provide their own clients with the same high quality of service, always ”doing the right thing” above all else.

To help United Way in their efforts, Jefferson Capital began donating more than 20 years ago. Since then, it has supported United Way’s community outreach by various means, including:

• Inviting representatives of the United Way to attend corporate meetings and present to employees about the value of giving;
• Hosting lunch cookouts where employees can contribute to the United Way;
• Selling raffle tickets for gift baskets, with 100% of the proceeds going to the United Way;
• Rewarding employees who donate to the United Way with treats and special experiences.

Plans for the Future

During the kick-off meeting for the 2023 campaign, a United Way representative provided a presentation on the impact Jefferson Capital’s contributions have made in the central Minnesota region. The presentation showed the on-going needs in the community and how Jefferson Capital’s contributions will help to address those needs.

Not only will Jefferson Capital continue with its typical fundraising campaign, but Jefferson Capital will also begin hosting new events. Having raised roughly $25,000 every year since their partnership began (along with a $20,000 corporate donation for its twentieth anniversary), Jefferson Capital and its employees believe they can strengthen their contributions even further.

Jefferson Capital’s event schedule begins with yet another cookout in June. Managers will cook brats and burgers for employees, who can then donate to the United Way. Jefferson Capital will also host an event for coffee lovers in autumn, followed by a December food drive.

Conclusion

Jefferson Capital and its employees have raised more than half a million dollars to help United Way’s fundraising efforts.

For Jefferson Capital Systems, giving back to the community in which they operate is essential. Contributing to United Way enables Jefferson Capital Systems’ employees to align their financial donations with organizations that support their values, and advances the corporate mission of “doing the right thing.”

For debt buyers, effective performance monitoring is vital when looking to cultivate a successful and compliant team while safeguarding the rights and interests of consumers.

In order for debt buyers to ensure proper development and consumer protection, companies must continuously monitor their teams’ performance. They often do this using various methods to enhance their productivity, compassion, and safety measures.

Jefferson Capital Systems reviews that, like any business, debt-buying firms must monitor, quantify, and evaluate the right metrics to successfully come out on top. Here, businesses are looking to generate tax write-offs, re-deploy their own resources, or recover their investments.

Some of the strategies employed by such agencies are detailed below.

Utilizing Scorecards for Team Development and Morale Boosts

While debt buyers aren’t necessarily collectors, many end up choosing to run collection operations themselves, pushing their business into that category. Thus, they can utilize the scorecard method for accurate performance monitoring.

According to InsideARM, collector scorecards are summaries of a range of statistics in one easy-to-read document. The performance evaluation resource tracks a plethora of actions made by collectors, combining everything into a final score written at the bottom of the scorecard.

The “grade” signifies the work effort while identifying the areas of potential for improvement and success. Thus, agencies know exactly what they need to focus on for the betterment of the team.

Tracking Performance Through Segmentation

Businesses want to boost their return on investments (ROIs) — debt buyers are no different. Therefore, they can track based on the segmentation of loan sets based on their agencies’ specialties.

Some specialize in account types (i.e., high balances or bankruptcies), while others specialize in asset classes (i.e., unsecured consumer loans), while the rest may lean toward a vertical such as auto deficiencies.

Regardless, discovering each agent’s niche and tracking performance based on their specialties is a great way to maximize potential.

Integrating Advanced Technology to Track, Measure, and Improve Success Rates

Specialized collections software is the most effective way for debt buyers to track their metrics and develop their teams as a result.

However, not all available software was created equally. Debt-purchasing firms must practice due diligence when finding the cream of the crop.

Experts suggest that agencies should invest in specialized software that covers the following metrics:

• Product line — The software should cope with retail products (i.e., consumer loans, credit cards, housing, car loans, etc.) with and without collateral, corporate loans, small business loans, factoring, and leasing.
• Time — It should cover all stages of the process, from soft to recovery.
• Location and organization — The system should centralize the firm’s data in one place for more accurate, seamless measuring.

Setting and measuring goals ultimately guarantees the development of a firm’s teams. After all, changes can’t be made without understanding the actual problems with the current processes.

Plus, customer protection disputes will likely arise during the process, bolstering agencies’ abilities to keep their consumers safe from cybersecurity breaches.

By prioritizing performance monitoring and incorporating consumer protection measures, debt buyers can create a culture of accountability and excellence that benefits both their teams and the individuals they serve.

There’s a common temptation in business to hold on to aging receivables with the belief that payment is just one more email or phone-call away. However, that’s not always the case, and the longer those aging receivables stay on the books, the harder they become to recover. One of the obvious benefits of selling non-performing accounts is increased liquidity for the creditor– the funds previously MIA as a result of non-paying customers are now available to fuel other business operations.

But of course, there will be various considerations when making this kind of decision. Jefferson Capital reviews below how to determine if selling receivables makes sense for your business.

What Are Account Receivables?

The first step to knowing whether or not a business is ready to sell account receivables is simply understanding what counts as an account receivable. An account receivable is the result of an extension credit representing the borrower’s promise to repay the creditor for the credit that was extended for the purchase of goods or services. For example, if a bank issues a credit card to a consumer and the consumer incurs $100.00 worth of charges on the credit card account, the $100.00 due on the account is listed as an “account receivable” in the bank’s records. It will remain there until the amount is paid off by the consumer. Essentially, a receivable is a customer’s promise to repay borrowed funds. Account receivables are assets that can be purchased and sold just like any other asset. The ability to buy and sell account receivables creates significant benefits to both the business and consumer.

What is the Account Receivables Secondary Market?

The secondary market for account receivables (also referred to as the “debt buying” industry) provides for the orderly purchase and sale of account receivables. The receivables secondary market is the marketplace where ownership of performing and nonper¬forming account receivables (i.e. the asset) are purchased by companies that were not a party to the original transaction. The selling entity on the secondary market may be the original creditor or a company that purchased the receivable from another debt buying company. When a transaction is completed in the secondary market, the ownership of the receivable and all legal rights associated with that asset are now held by a company not a party to the original transaction.

What are the Benefits of the Account Receivables Secondary Market?

The account receivables secondary market creates significant benefits for both creditors and consumers.

For consumers, the secondary market:

• Allows credit to be widely available -The United States’ economy is heavily reliant on the extension of credit for the purchase of goods and services. Busi¬nesses calculate into the price of goods and services the anticipated losses from nonperforming receivables. The secondary market provides a mechanism for reducing those losses, which is factored into the business’ pricing calculation. If a business is unable to recover its receivables, the cost of their goods and services will increase and the business may be forced to restrict the exten¬sion of credit to only low risk consumers.

• Lower Cost Settlements -Debt buyers who purchase accounts are often willing to negotiate settlements of accounts for less than the original creditor since the debt buyer purchased the account for less than the full balance.

For businesses, the secondary market:

• Facilitates liquidity for lending entities -The money lenders receive from debt buyers on the secondary market allows those lenders to use fresh capital to issue new loans. Without the secondary market, lenders would have less access to capital which would restrict their ability to loan to new borrowers.

• Creates small business jobs – The debt buying and collections industries account for hundreds of thousands of jobs nationwide, the majority of which are with small businesses. Without a viable secondary market, many of the jobs created in the debt buying industry would either not exist or would remain with large lending entities.

• Allows creditors to focus on their core competencies -Debt collection is usually not considered a main focus of an originating creditor’s business model. By selling its accounts receivables, an originating creditor can focus its energies and capital on what it does best.

Ways to Tell if Selling Receivables Makes Sense for a Business

In light of the above referenced benefits of the account receivables secondary market, selling receivables is part of many successful businesses’ standard operating procedure.

Below are three ways to tell if selling receivables makes sense for a business:

1. The Business Has Significant Unpaid Account Receivables –If a business has a large portfolio of account receivables on its books, selling the receivables may make sense for that business. Because of the transaction costs of selling and purchasing receivables, most debt buyers are not interested in purchasing only a few accounts at a time. However, what constitutes a “significant” amount of receivables is dependent on each segment of the secondary market and a debt buyers’ willingness to purchase the accounts.
2. The Business’ Capital Needs – If a business is in need of fresh capital, the selling of receivables for present value is a good alternative to waiting for a long term collections cycle to be completed.
3. Satisfying Compliance Obligations – Creditors must partner with reputable debt purchasers to satisfy reputational concerns and regulatory requirements. As part of those obligations, creditors must vet potential purchasers of the accounts to ensure the debt buyer complies with all collection laws and obligations. The creditor must also provide sufficient documentation of the account to the debt buyer to fulfill the debt buyer’s obligation to establish the amount owed and its ownership of the account.

In Conclusion

The receivables secondary market provides direct and tangible benefits to many successful businesses. It also benefits consumers by providing liquidity to lenders who are able to issue new loans. Businesses holding a large volume of account receivables on their books should investigate the value-add proposition of partnering with a reputable debt purchaser.

Collection agencies play an important role in helping consumers recover from financial distress. Balancing compliance requirements with clients’ recovery expectations is certainly not always easy. Because of the complexities of a successful debt collections practice, it is important that collection agencies have efficient and effective strategies for maximizing their recovery efforts.

Below, Jefferson Capital Systems reviews seven tried-and-true techniques for efficient debt collection that can help agencies maximize recoveries.

Utilize Automated Collection Workflows

Automated collection workflows are highly effective for streamlining the collection process, from initiating contact with consumers to tracking payments and more. By using automated workflows, collection agencies standardize the handling of accounts to ensure all accounts are worked in a timely and compliant manner.

Develop a Passion for Compliance within the Collections Industry

It is essential for agencies to constantly stay up to date on the laws and regulations governing debt collection. Compliance concerns are ever changing as new statutes, regulations and case law develops. As compliance expectations evolve, collection agencies must adapt their policies and procedures to address those needs. Developing a passion for staying abreast of changes helps minimize regulatory and litigation risk.

Implement Technology Solutions

Technology is an essential tool for collection agencies to satisfy consumers’ communication preferences and meet client expectations for recovery rates. From AI-enabled contact centers to online payments, text messaging, and automated reminders, technology makes the collection process more efficient and effective. As technology evolves, agencies must stay up to date on the latest trends, and the corresponding compliance impacts.

Offer Multiple Payment Solutions

Collection agencies should offer consumers multiple payment solutions to resolve a debt. Most consumers genuinely want to repay the money they borrowed, but need flexibility in the repayment terms. Providing consumers repayment options helps to de-escalate the collection interaction and opens the door to negotiation between the debt collector and the consumer.

Connect with Consumers on an Emotional Level

Connecting with consumers on an emotional level is essential to successful debt collection. By showing understanding of the consumer’s circumstances and providing support, agents can more effectively negotiate a solution that meets the consumer’s needs and the client’s expectations.

Leverage Debt Collection Vendor Expertise

Through utilizing vendors that specialize in debt collection services, agencies gain access to invaluable resources for the collection process. Whether it is licensing, skip tracing, or IT solutions, vendors play an essential role in a modern debt collection practice. Vendors frequently have extensive expertise and experience navigating technical aspects of the collection process and the compliance concerns of highly specific areas of the law. In addition to potential cost savings, the use of vendors helps free up internal staff to focus on other areas of the operation as an organization grows.

Take Care of Your Employees

It is of utmost importance for agencies to invest in their employees. Regardless of how much technology an agency utilizes, employees are an organization’s most important asset. Judging by the help wanted ads, the collections industry generally has a high rate of turnover. However, organizations that retain employees reap numerous tangible and intangible benefits. The tangible benefits include a reduction in hiring costs. Hiring recruiters, sign-on bonuses, human resource head count and training staff costs add up quickly. The intangible benefits of employee retention help develop a successful corporate culture. Retaining institutional knowledge, continuity in processes and systems, and nurturing loyalty are all intangible benefits of employee retention that play an important role in an organization’s success.

Final Thoughts

Debt collections is an art, not a science. Debt collection companies implement a wide variety of collection techniques to varying degrees of success. The debt collection techniques discussed in this article by Jefferson Capital Systems increase the odds of collecting debts in a respectful and compliant manner that empower consumers to resolve their delinquent debts, while also meeting clients’ recovery expectations.

On February 7th, 2023, the Vice President of Business Development for Jefferson Capital System Reviews stated that Penny Campbell will be speaking at the Receivables Management Association International (RMAi) Annual Conference. The event is set to be hosted at the Aria Resort and Casino in Las Vegas, Nevada, from February 6th to February 9th.

The annual event is always an important meeting for professionals in the receivables management industry, and 2023 is no exception.

RMAi Membership

RMAi is a nonprofit trade association representing over 590 companies that bolster the purchase, collection, and sale of nonperforming and performing receivables on the secondary market.

Companies with an RMAi membership come from a variety of related fields, such as:

• Law firms
• Originating creditors
• Debt buying
• Collection agencies
• Industry-related service providers
• Industry-related product providers

RMAi’s yearly conference is one of the many opportunities it offers to its members for networking, learning, and developing in a wide range of asset classes.

The Conference in 2023

From networking to industry-related education to business development prospects, the RMAi Annual Conference is a critical gathering for a wide range of professionals such as debt buyers, collection agencies, law firms, originating creditors, brokers, and their affiliates.

Those attending the event will learn about cutting-edge information and unparalleled expertise through various in-depth education sessions. Alongside a multitude of other topics, these discussions will feature regulatory, legislative, and legal updates in the accounts receivable sector.

On top of that, participants will be able to expand their contact lists and strengthen existing connections during exclusive, enticing networking events throughout the four days.

Jefferson Capital’s VP of Business Development to Speak at This Year’s Conference

Penny Campbell, Vice President of Business Development, has amassed over 31 years of sales leadership and operational management experience within the consumer financial services industry. Her extensive career began after obtaining two degrees from St. Cloud Business College.

After 14-years working with a national retail consumer goods and financing company, Campbell joined Jefferson Capital in 2002 as a manager.

Her role initially focused on the company’s external recovery operations. However, she has since held numerous business development and operational roles at the company, including overseeing the internal call center and leading the marketing and client services teams.

She now heads the firm’s business development team, establishing solutions for new clients while maintaining existing client relationships of all kinds.

Campbell has extensive knowledge and advice to give, which is precisely what she’ll be doing at the RMAi Conference.

Like-minded, well-established industry leaders will join her to speak on best practices. The session is entitled “Using Certification Standards to Design a Process for Debt Sales, Operations, and Compliance”.

Those attending the conference this year should be sure to add Campbell’s session to their schedule. Industry professionals won’t want to miss her thoughts, opinions, and insights.

Jefferson Capital is an international financial services company and one of the largest debt buyers in the United States. But what sets them apart from other providers? Below, Jefferson Capital Systems reviews what they stand for as a financial institution, along with the services they provide to consumers.

As a financial institution, the company strives to listen to consumers in order to help settle their accounts in a way that best suits the person’s needs, while offering a feasible way to manage debts. Founded in 2002 in St. Cloud, Minnesota, Jefferson Capital has since expanded to include offices across the United States, the United Kingdom and Canada.

Services and Solutions

Jefferson Capital Systems, LLC is the fourth largest buyer and servicer of charged-off and bankrupt consumer accounts in the United States. It leverages analyzed data in order to formulate the best solutions for consumers to resolve accounts.

Proprietary Solutions

A variety of proprietary solutions that are unique to the firm ensure a distinctive solution for each individual. These include the following custom-built offerings:

• The CustomerCare Solution™ and the Recovery Solution™ allow Jefferson Capital Systems, LLC to quickly and effectively offer individually crafted solutions to consumers.
• The PrecisionHandler Solution® leverages AI to help respond to written and verbal disputes.
• The Vericredit Solution™ assists in investigations of consumer credit reporting.

Data Analysis to Power Pricing

Using over 20-years of data and other resources, Jefferson Capital Systems, LLC has created custom models that use predictive modeling, neural networks, and AI to inform their pricing and account management practices.

Compliance and Customer Satisfaction

Compliance is at the heart of everything Jefferson Capital Systems, LLC does. This not only helps to maintain their status as a trusted debt purchasing and financial services company, but it leads to high levels of consumer satisfaction, too.

From the very start in 2002, their team of compliance experts and auditors have been working both internally and externally with company partners to ensure that they meet and exceed all federal, state and local rules, regulations and requirements.

Core Values

Jefferson Capital also stands by its core values: integrity, respect, compliance, and communication. These values ensure that the business maintains good standing and trustworthiness, while also providing knowledgeable information in a way that benefits everyone.

Leadership

Jefferson Capital is run by passionate and industry-leading professionals. Its management team has over 100-years of industry experience. In order to ensure compliance with all laws, rules and regulations, it employes a Chief Compliance Officer, along with dedicated legal, auditing and IT staff.

Connecting with the Business

Jefferson Capital Systems, LLC was founded on the bedrock principles of listening, identifying solutions, and “doing the right thing.” It’s why each year, it is able to help hundreds of thousands of its account holders find workable solutions to resolve their accounts and move forward with their lives As part of those principles, Jefferson Capital Systems, LLC always wants to connect with consumers who may be facing financial difficulties and looking to resolve debt related responsibilities.