Collections

Collecting on the "Uncollectable"

Outdated Identities Are the Hidden Cause of Untapped Revenue in Government Collections.

Start collecting debt that is owed to your agency. LexisNexis®—a leader in debt recovery solutions—offers a comprehensive suite of tools that address all phases of the collections cycle.

Government collections personnel are faced with a mighty task—to collect as much as possible of the $600 billion in unpaid debts that are owed. What makes this task so difficult is the fact that debtors’ circumstances and identities are not static—they are constantly changing. To make matters more challenging, a substantial percentage of debtor records are unverified and inaccurate upon origination.

When identities change in real life, the changes are not reflected in your static debtor records, and a gap between you and the debtor is created. The longer the record remains in your system, the larger that identity gap becomes, and eventually the original record becomes obsolete. In order to quickly and accurately contact these debtors, your debt recovery operation will benefit significantly from a dynamic account monitoring strategy.

Debt collection remains a critical revenue source for government agencies. Through several tests with its customers, LexisNexis has found about 70% of old debt, or $460 billion, is not collectable due to inaccurate identity information. This $460 billion is collectable when debtor identities can be resolved. LexisNexis® Revenue Recovery Solution, including Identity Contact Resolution, enables agencies to verify and resolve identities, locate and contact debtors, and continuously monitor for updates to critical account information—so you can stop searching and start collecting.

  • A state agency was able to update 85% of its debt file and collect or recover $4.2 million by working with LexisNexis.

  • “In a recent test of a file containing 16,000 debtor identities, 4% of the identities in the file had changed in just 6 weeks.”
    - Scott Straub, Federal Civilian Strategic Market Planner for the Government Business Division, LexisNexis Risk Solutions

  • On average, 35% of delinquent debtors move annually and 50% need to be skip traced.

The Paradigm Shift: From Data to Identities

The old, data-driven approach to debt recovery begins with a static debtor file. If debts are not collected before the identity record changes, or if the identity record was incorrect at the point of origination, then there is a high probability the record will be flagged as uncollectable. The debt record will probably remain on the system, but because the evolving identity no longer matches, it has reached the “finish line”. That debt will never be paid.

With powerful data linking and identity verification tools within the Revenue Recovery solution suite, LexisNexis supports a highly-effective, identity-focused, cyclical approach to debt recovery. Imagine how efficient and productive your collection efforts can be with access to accurate, reliable identity and contact information at every key interval of the collections cycle. Regular file updates that go beyond standard due diligence requirements are a welcome benefit. In this strategic shift from linear to cyclical, due diligence and identity resolution are an ongoing standard operating procedure that increases the likelihood that collectors are contacting the right debtors and maximizing their
collections efforts.

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We have analyzed hundreds of millions of identities across dozens of federal, state and local systems for identity risk, and are the global leader
in mitigating identity risks. Learn how others have done it through an identity solutions demonstration today.

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