Below is a list of summary control reports to monitor the end-to-end legal collections process. In the next section, we will present the legal collections dashboard.
- Overall activity by law firm cross-section, including the amount and number of cases (including on a timeline, years, and months).
- 100 largest customers in legal collections (by customers, law firm, years, and status – open, closed, etc.).
- Collection rates according to amounts (100–2,000; 2,000–5,000; 5,000–10,000; 10,000–25,000; 25,000+).
- Debt balances by status (open, closed, bad debt, delayed, settlement, consolidation, cancelled) – at the law firm level and at the level of amount and number of cases as a percentage of the total.
- Debt balances are arranged according to amounts and the number of cases in sections: 0-300; 300–500; 500–1,000; 1,00–2,500; 2,500–5,000; 5,000–10,000; 10,00+.
- Collection rates from original balance values only / from outstanding balances including legal expenses – amount and number of cases by years and law firm.
- Quality issues and complaints for the portfolio / at an individual level.
- The legal collections department’s activity is monitored according to the monthly number of incidents, processing round time per unit in minutes, etc.
- Discount rates, settlements and credits given on the total portfolio.
- Dormant debts with no activity for over 120 days by law firm, amount and number of cases as a percentage of all activity.
- Complex cases by law firm, amount and number of cases as a percentage of the total activity.
- Cases in repayment plans by law firm, amount and number of cases as a percentage of the total activity.
- Cases that entered insolvency processes by law firm, amount and number of cases as a percentage of the total activity.
- Debt balances statuses by law firms and internal distribution according to amounts and number of cases.
- Average portfolio lifetime report: This is a report that enables monitoring and control of the activities carried out in the portfolios; It includes date, case number, name, client number, case status (status: enforcement actions, etc.), date of judgment, receipts, expenses, fees, date of last action, nature of last action. In addition, repayment plans report, number of payments agreed upon, number of payments received and how many payments are left.
- The possibility of producing statistical and control reports at different levels, for example – collection rates in relation to transfer dates for legal proceedings, legal proceedings round time from the opening of the case to each of the statuses, collection forecast based on actual data from the past and more.
- Total debts (in total and by a law firm) according to the debt amount level group and number of customers against statuses (open, closed, cancelled, etc.).
Market surveys and knowledge sharing sessions:
This topic is of great importance for efficient and effective work with the law firms all its components.
Throughout the process, the organization has many expenses for legal collections, for personnel resources (in large organizations there are special departments that handle the issue), for infrastructure resources (information systems, communication, administration, etc.), and for managerial resources (decisions by managers at the various levels of the organization in cases where decision and intervention is required); Sometimes there is even intra-organizational tension, usually between the collections department and marketing and sales, which also takes its toll on work efficiency.
Market surveys are not supposed to solve all these problems, but they certainly have the potential to save expenses and provide an opportunity to improve processes based on the results obtained from the surveys. Regarding knowledge meetings with colleagues – these help improve your professional knowledge, learn from the mistakes of others, recognize new ideas of others to improve – and sometimes also to discover that the organization pays more than others to external parties such as law firms or collections agencies.
NEXT: Incentives for lawyers and promotions for debtor clients