At a busy watering hole, every animal — from the smallest bird to the largest zebra — knows that sometimes you have to step into uncomfortable territory. The water is life, but getting there means accepting risks.Â
In many ways, creditors and their vendors — collection agencies and repossession companies — face a similar dilemma.Â
Sometimes, creditors must make hard decisions that don’t always make immediate sense to their partners in the field.
Cutting commissions, prohibiting personal property fees, resulting in reduced revenue streams. These aren’t easy calls, and they certainly aren’t popular ones.
But like the zebra eyeing the watering hole, tough decisions are often necessary for survival — not just for the creditor, but for everyone downstream.Â
Â
Thin Margins and Big ImpactsÂ
Collection agencies and repossession vendors already operate on razor-thin margins, where even small policy changes can destabilize a very delicate balance.
It’s important to recognize that not everyone feels these shifts equally — while a repossession forwarder may be insulated from immediate pressure, the agent out in the field, securing the collateral, often bears the full weight. They’re the ones absorbing the real-world consequences.
It’s not a lack of willingness to adapt — it’s that every adjustment demands careful strategy: How will they absorb the financial hit? How can they continue to meet performance expectations? What sacrifices will be necessary to survive?Â
The Key: Honest, Early ConversationÂ
Here’s where creditors can make all the difference: communicate early and often.Â
Once a decision has been made — or even when it’s on the horizon — start the conversations with your vendors. Bring them into the reality you’re facing. Share the pressures, the regulatory changes, the business needs. They may not love the news, but vendors appreciate transparency far more than surprises.Â
A conversation opens the door to collaboration instead of resentment. It gives agencies the chance to adjust their strategies thoughtfully rather than reactively. It respects the vital role they play in the process — and recognizes that while you may be navigating your watering hole carefully, so are they.Â
Shared SurvivalÂ
At the watering hole, survival isn’t a solo act. Every species — big or small — relies on the presence and behavior of the others.
In collections and repossessions, the same truth applies.
Creditors, collection agencies, and repossession vendors all need each other to survive the hard seasons.Â
The best way to get through? Step into the uncomfortable space together. Talk. Plan. Acknowledge the path ahead.Â
You’ll be surprised how far that kind of partnership can carry you — even when the waters get rough.Â
Author: Bev Evancic
Bev.Evancic@ResourceManagement.com
Bev Evancic is a Senior Vice President at Resource Management Services, Inc. Prior to employment at RMS, Bev worked as the Collection and Recovery Manager at AT&T Universal Card, Citi, and Federated Department Stores. Bev started in the collection industry as a collector at an upscale clothing store in Cincinnati, Ohio. As a returned check and private label credit card collector, Bev gained a basic understanding of the collection industry that has not changed with the introduction of regulations. Her collection philosophy begins with the idea that businesses and customers benefit from preserving the customer relationship. First, collectors need to attempt to contact customers when it is convenient for the customer to discuss his/her financial condition and willingness/ability to pay. Second, you never collect money by intimidating or threatening customers. Third, businesses must make sure the debt is valid.Â
She has managed all phases of collection and recovery operations, including automated dialer units, bankruptcy, and legal units, skip tracing units, internal collections, outside collection agency networks, and Consumer Credit Counseling. As a Consultant for Resource Management Services, Inc., Bev has spearheaded collection and recovery best practices reviews for many top credit grantors. Her articles on dialer operations, agency management and bankruptcy best practices have been widely publicized.Â
She is well known and regarded as a specialty expert in the areas of: Repossession, Bankruptcy, Estate, Litigation, as well as Pre- and Post- Charge-off. Prior to joining Resource Management Services, Inc. in 1995, Bev managed the Recovery Department for AT&T Universal Card Services where she developed the bankruptcy, probate, internal and litigation processes.Â
She is the author of “Recovery Management: Collecting the Uncollectible Account.
