Equifax Inc. (NYSE: EFX) announced at the 2011 Debt Buyers Association (DBA) International Annual Conference the launch of a breakthrough recovery scoring solution for the collections market.
Recovery Navigator(TM) is the industry’s first solution to leverage both credit and income data to predict the likelihood that a charged-off account will make a payment within 12 months. Using this solution, collection entities and debt buyers can identify accounts with the highest propensity and ability to pay, improve recovery margins and enhance debt-buying decisions. Equifax developed Recovery Navigator by analyzing debt patterns and other variables across a number of industries, especially credit card portfolios. Based on its research, Equifax designed a highly predictive solution that combines its extensive credit data with proprietary debt-to-income analytics and custom modeled income data. Leveraging these differentiated data assets, Recovery Navigator calculates a numeric score to predict ability to pay and determine the collections potential of a debt portfolio under consideration for purchase. Scores range from 1 to 999, with higher scores representing a greater likelihood of collection.
The incorporation of Equifax’s unique income data makes Recovery Navigator an effective solution across all market segments, especially the thin-file population. The solution also integrates seamlessly with existing collections products, enabling customers to correlate the probability of payment to the collection strategy. With this insight, businesses can improve the management of debt portfolios by refining treatment strategies and prioritizing collection spend based on key metrics, such as capture rate of paying accounts and dollars collected.
Recovery Navigator is part of Equifax’s portfolio of collections solutions, which include skip-locate tools, portfolio monitoring, scoring and account review products. Source: Equifax Press Release