Debt Recovery

FAQs

• What type of debt can CLS recover?

  ​We recover mortgage-related products such as HELOCs and purchase money, both 1^st and  2^nd liens.

• How much can I expect to recover?

  ​Unit count, UPB, geographic data, and debt type are some of the important data points we will use to gauge your opportunity and build a projected cash flow model. Once that is complete, we can outline estimated returns and set expectations. Our goal is to align our collections approach with your business priorities.

• Does the liquidation rate vary between legacy/vintage charge-offs and recent charge-offs?

  ​Yes. Typically, the older the charge-off, the higher the collection opportunity. If the charge-off occurred recently, there is likely very little equity, and the consumer is less likely to pay. Our cash flow model will provide details on what you can expect to recover.

• What if I'm verifying the lien position and status myself?

  If this is the case, we will need to know the mix of secured vs. unsecured debt and the frequency of review. We will perform an analysis at boarding and use our cash flow modeling to determine your liquidation rate. In most cases, secured assets will have a liquidation rate of around 30x more than an unsecured portfolio. If you are not verifying the lien position and status, we will incorporate lien verification and monitoring into our solution for you.

• What if I'm completing regular statutory reviews?

  If this is the case, we will need to know the frequency of your review. If there has never been a statutory review and no lien verification, most of the pool is likely unsecured and uncollectable. If you are not completing regular statutory reviews, we have you covered. Our solution has a monthly statutory review process for unsecured assets. For secured assets, we will perform a statutory review prior to breaching the loan.

• What if I am working assets reactively?

  If you are working loans only reactively, we expect to outperform historical collections by at least 7x by deploying specific strategic initiatives that increase consumer engagement.

• Does CLS' recovery approach differ between securitization and whole-owned pools?

  ​We set up each client according to their best interest. If the pool is whole-owned, you are more likely looking to liquidate quickly, where in a securitization, it is better for the assets to begin performing and pay monthly. Interest collections are key in that environment.