Marketing & Business Development Flashcards

Creditors comparing agencies often focus on 'net-back.' What does net-back measure?

Answer: Collections minus the agency's contingency fees, meaning what the creditor actually keeps

Net-back is the amount the creditor actually keeps after paying agency fees.

Which is an example of secondary market research for an agency entering a new vertical?

Answer: Reviewing published industry reports and government data

Secondary research uses existing published data instead of gathering new information directly.

An agency sends commercial marketing emails to prospective creditor clients. What does the CAN-SPAM Act require?

Answer: A working opt-out mechanism and a valid physical postal address

CAN-SPAM requires commercial emails to include an opt-out mechanism and the sender's physical postal address, along with non-deceptive headers.

When forecasting revenue for new consumer placements, which seasonal period typically increases collections in the U.S.?

Answer: Tax refund season, roughly February through April

Consumer collections usually rise during tax refund season because debtors have more cash available.

Which document sets measurable performance expectations, such as reporting timelines and remittance schedules, when a new client is onboarded?

Answer: A service level agreement

A service level agreement defines the measurable service standards the agency commits to meet.

Why might a prospective client review an agency's record in the CFPB Consumer Complaint Database during vendor selection?

Answer: It is public and shows consumer complaints that reflect compliance and reputational risk

The CFPB complaint database is public, and creditors use it to assess reputational and compliance risk.

A contingency agency wants to diversify its revenue model. Which option is a common expansion strategy?

Answer: Purchasing charged-off debt portfolios as a debt buyer

Many agencies add debt purchasing alongside contingency collection, which brings its own licensing and compliance duties.