It's 'Collection Season'

October is the beginning of "collection season" for agencies, a roughly six-month period of mostly increasing recoveries.

" Collections always increase in the fall," said Mike Dunn, I.C. System's senior vice president of operations. I.C. System's medical collections are a TMA-endorsed service.

"We speak to more debtors since they're home more than they were in summer," Mr. Dunn said. "October is traditionally a very good collection month and November/December year-over-year results have improved. It's collection season. Now is definitely the time to submit accounts." He added that a new year "signals a tax-time collection lift. The annual lift occurred in March and April for years; however, e-filing and direct deposits mean more debtors get refunds earlier, and the new tax-time lift starts in January and peaks in February.

"There is a credit-reporting factor in play throughout collection season. If a client authorizes credit reporting, we report their accounts to the national bureaus approximately 45 days after receiving and working the accounts. Some debtors use refunds to make down-payments on big-ticket items or to refinance; if we had the client's OK to previously credit report those accounts, purchases/refinances often lead to a client getting paid."

 

Action , Oct. 2, 2009

Last Updated On

June 03, 2016