Debt collectors sharpen discount tools
DEBT collectors say better computer analysis tools means they can offer far more selective discounts than broad-brush reductions in the past.
Brisbane-based Collection House recently sent out an offer to 3000 people for a discount on the debt they had to repay — up to 50 per cent off a $7000 plus debt in one offer seen by The Courier-Mail.
Discounts are one tactic sometimes used in the debt collection industry. But Collection House managing director Matthew Thomas said discounts nowadays were far more refined than almost 10 years ago, when blanket offers were made across the board.
That was due to better analytics, he said. The discounts could be as little as 5 per cent, depending on the individual.
Mr Thomas said last month that discounting was not occurring as it had in the past, but clarified that his comment was in reference to the across-theboard discounting that had taken place years ago.
Collection House in August posted full-year profits of $22.5 million, up from $18.5 million. Morgans analysts Scott Murdoch and Nick Harris described the result as strong.
They predicted Collection House would deliver solid growth through to fiscal 2017, with risks including the loss of a major contract.