Corporate Corner
Welcome to Capital Recovery’s NEW website. So much is new and exciting around here, and all for the benefit of our clients, friends, the credit community and employees. In addition to our new offices, we’ve added specialists into our technical capacities, equipment, computer hardware and software. We’ve streamlined claim placement operations, supplemented security, enhanced reporting and remitting procedures, and added helpful and friendly individuals to our staff. Thank you for allowing us to remain at your service.Words of Wisdom
“A New Year’s resolution is something that goes in one year and out the other.” — Unknown“Draw a circle, not a heart, around the one you love because a heart can break but a circle goes on forever.” — Unknown
CrediTalk
Court Costs – A Necessary Evil (or, “You have to spend money to make money”)For years, creditors’ commonly evaluated the effectiveness of their collection agencies by monitoring dollars collected to dollars referred. More recently, increased attention has been paid to a measurement standard termed “net back” – which essentially reduces the “dollars collected” figure by the amount of court costs expended to affect such recovery. While this analysis certainly has merit, it also causes some questionable decisions regarding the expenditure of court costs.
The thought process – reducing court costs will increase net back doesn’t always hold. One example is the imposition of a strict limit upon total cost expended, which operates to prohibit legal remedies in matters that otherwise merit such activity.
There is a “right way” to reduce the cost component of your net back equation. It starts with the engagement of a competent collection firm that is attentive to such issues. The creditor must rely on that firm to (1) make considered and intelligent decisions to expend costs; (2) take whatever steps are available to minimize each item of costs, and (3) reduce the need to expend certain such items. It boils down to not “throwing the baby out with the bathwater.”
Fun Facts
• The original Twinkies filling was banana: it was replaced by vanilla-flavored cream during World War II when the U.S. experienced a banana shortage.• There are seven loops in the squiggle atop every Hostess cupcake.
• Painting fingernails originated in China, where the color of someone’s nails indicated their social rank.
