LexisNexis Risk Solutions Rolls Out New Feature
NEW YORK — A new feature now is available with the LexisNexis Receivables Management Solutions Suite.
Officials highlighted that LexisNexis Banko Events Monitoring can automate the process of monitoring bankruptcy events and help collections organizations improve efficiency. They also contend the new feature can reduce cost and identify new sources of revenue.
The company shared feedback from preliminary customer beta trials from organizations that already have used the feature. Users found that the solution can save collections agencies and first-party debt collectors 50 percent or more on costs associated with manually monitoring bankruptcy events.
LexisNexis stressed that the number of people and businesses filing for bankruptcy is increasing at a staggering pace. The company cited data that noted 1.4 million petitions were submitted in 2009, which was a 32-percent increase from the previous year.
"With the number of bankruptcy cases increasing dramatically, it is vital for collections professionals to monitor bankruptcy events such as attempts to have a court forgive certain debts, to have an accurate picture of their debt portfolio," officials stated.
"Every time they want to check status on a debtor, collections professionals must conduct manual, labor-intensive searches using PACER, the federal court case electronic access system," they continued.
LexisNexis further shared results from the beta trial of Banko Events Monitoring conducted with nine clients across several industries, including a collections agency, a mortgage lender and an automotive lender.
In the case of the auto loan company, LexisNexis recapped that the lender had historically only been able to monitor approximately 7,500 of its 43,500 active bankrupt accounts. Officials noted that Banko Events Monitoring enabled the lender to monitor all 43,500 of its active accounts — and for less than half the cost of manually searching 17 percent of the prior caseload.
"In our current economic environment, bankruptcies are increasing like never before, and collections professionals need access to the most current, comprehensive data possible in order to collect on accounts and reduce loss exposure," explained Robert Fite, vice president, LexisNexis Receivables Management Solutions.
"LexisNexis Banko Events Monitoring allows collections professionals to focus on the business of making decisions, increasing efficiency and profitability," Fite concluded.