Insolvency management involves many complexities, and maintaining accuracy is critical. Licensed Insolvency Trustees (LITs) in Canada often face the challenge of assembling a debtor’s complete financial profile, especially when debtors struggle to recall all their obligations.
Credit reports offer an effective solution by providing a detailed overview of a debtor’s financial status. This case study explores how LITs can utilize credit reports to streamline their insolvency management processes and how Fileassure’s one-click credit report feature increases both speed and efficiency.
Farber’s Approach: Enhancing Workflow with Credit Report Integration
Farber, one of Canada’s leading insolvency and restructuring firms, integrated credit report extraction into their workflow, significantly improving their service. Graeme Whitehead, CIRP, LIT, Partner, and Vice President at Farber, highlights the impact:
“Our goal was to boost the efficiency of our frontline Debt Settlement Managers (DSMs). Many sub-prime consumers lose track of their creditors or avoid viewing statements. By extracting credit information for our clients, we provide a more comprehensive list than the debtor's memory, capturing account numbers and improving notice processing. This leads to faster cessation of collection calls and a better experience for our clients. We also track collection activities more precisely, reducing the need for clients to reach out to us about unknown collectors,” says Graeme.
How LITs Can Maximize Credit Reports
Credit reports provide Licensed Insolvency Trustees (LITs) with a detailed snapshot of a debtor’s financial obligations. They allow LITs to capture creditors that debtors may have forgotten or overlooked, offering a valuable tool in the insolvency management process.
Comprehensive Debt Overview
While credit reports may not capture every creditor—especially those that don’t report to the major bureaus—they still offer a more complete picture than relying solely on what debtors remember. This includes a list of creditors, account balances, and payment histories. By accessing this information, LITs can gain a clearer understanding of the debtor’s complete debt profile, which is crucial for accurately assessing their financial situation and formulating a debt resolution plan.
Identification of Creditors
Often, debtors may not be fully aware of all their creditors, particularly if they have avoided communications or lost track of their debts. Credit reports help LITs identify all relevant creditors, including those that the debtor might have forgotten or avoided, ensuring no creditor is overlooked during the insolvency process.
Verification of Claims
Credit reports enable LITs to verify the legitimacy and accuracy of creditor claims. This is important for validating the amounts owed and ensuring that the claims listed are accurate, thereby preventing disputes and streamlining the claims process.
Improved Communication with Creditors
By obtaining detailed credit reports, LITs can provide creditors with precise account numbers and debt information. This leads to faster processing of notices and can help creditors stop collection activities more quickly, improving the overall efficiency of the insolvency process.
Tracking Collection Activity
Credit reports can reveal collection activity that might not be directly reported by debtors. "Often collectors identify themselves as calling on behalf of a lender, so the debtor doesn’t know which collection agency we should notify. We are now able to capture some of this collection activity from the bureau, reducing stress for debtors."
Enhanced Accuracy in Debt Resolution
Access to credit reports allows LITs to create a more accurate and comprehensive debt resolution plan. This accuracy helps in prioritizing debts, negotiating settlements, and ensuring that the insolvency process addresses all financial obligations effectively.
The Benefits of Fileassure’s Credit Report Tool
By using Fileassure’s credit report tool, LITs can obtain a complete list of debts without burdening the consumer.
Quick and Easy Access: Our tool allows LITs to pull comprehensive credit reports with just a single click. This means no more manual data gathering or waiting—everything you need is instantly available.
Better Accuracy: Credit reports offer a detailed view of a debtor’s financial situation, capturing all reported debts and accounts. This helps LITs avoid errors and get a clearer, more accurate picture than relying on the debtor’s memory alone.
Accelerate Creditor Processing: By having accurate account numbers and detailed information, LITs can send notices to creditors more quickly. This often leads to faster halting of collection activities, improving the experience for both creditors and debtors.
By integrating credit reports into their process, LITs can improve the accuracy, efficiency, and effectiveness of managing insolvency cases, ultimately leading to better outcomes for both debtors and creditors.
Discover How Fileassure Can Help
Book a demo today to see how Fileassure’s one-click credit report feature can save time and enhance the customer experience.
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