Operations & Process Management Flashcards

A collection manager wants to measure what share of placed dollars were actually recovered over a set period. Which KPI fits best?

Answer: Liquidation rate

Liquidation rate is dollars collected divided by dollars placed, so it measures recovery performance directly.

Which metric best shows whether customers actually pay the promises they make to agents?

Answer: Promise-to-pay kept rate

Kept rate measures how many promises to pay were honored, which reflects how good the negotiation was.

An agency's cost to collect is rising while recoveries stay flat. Which action most directly improves this ratio?

Answer: Segmenting accounts so low-balance, low-propensity accounts get cheaper digital treatment

Segmentation matches treatment cost to expected recovery, which lowers cost per dollar collected.

Under Regulation F, a debt collector is presumed to violate the harassment rules if it calls a consumer about a particular debt more than how many times within 7 consecutive days?

Answer: 7 times

Reg F's call-frequency presumption is triggered by more than 7 call attempts in 7 days, or by a call within 7 days after a phone conversation about that debt.

What is the main purpose of a champion/challenger strategy in collection operations?

Answer: Testing a new treatment against the current one on a controlled sample before rolling it out

Champion/challenger compares a new strategy against the existing one on a subset so results can be measured before full deployment.

A creditor client asks for all accounts placed in January to be returned. What is this process called?

Answer: Recall

A recall is when the client takes placed accounts back from the agency, and it requires reconciliation of balances and payments.

Which tool is most useful for finding the root cause of a recurring drop in right-party contacts?

Answer: Fishbone (Ishikawa) diagram

A fishbone diagram sorts possible causes (people, process, technology, data) so the root cause can be found.