Collecting interest provokes faster payment, increases revenue and reduces collection costs
TAMPA, Fla., Oct. 15 /PRNewswire/ — Hunter Warfield, Inc. (HWI), a firm specializing in debt collection for the multi-housing industry has completed all its programming to charge the legal rate of interest to debtors for its clients in all 50 states.
Hunter Warfield’s clients, who own and manage rental housing from coast to coast, have started collecting interest to increase revenue amounts at a faster pace. The program, which compounds interest daily, is the first of its kind in the multi-housing industry and is a contributing force behind quicker collections because adding interest to delinquent accounts is an incentive for debtors to provide prompter payments. Consequently, the resulting increases in revenue offset the net cost of collections for property owners.
“Our clients are legally entitled to receive interest income on their bad debts. These former residents represent a loss for our clients from the outset. Collecting interest will help mitigate these losses. This feature will give competitive advantage to both vendor and client, which is where both parties want to be,” said Stephen Sobota, Founder and Chief Executive Officer of Hunter Warfield.
Sobota added that while other agencies are collecting only the principal amount due, a debt with HWI grows with each day that it goes unpaid. “If a former resident chooses to resolve their indebtedness two years after the fact, they will pay a premium to do it. Time has a price.” Hunter Warfield is leveraged to collect much more. By combining cutting-edge technology with a team of thoroughly trained professionals, Hunter Warfield is able to afford property owners and managers the opportunity to maximize their bottom line.
The company gives debtors a chance to save on interest charges by paying within thirty days of initial notification. Each day beyond that accrues interest. This, coupled with credit bureau reporting is a big motivation to pay sooner than later. The system is able to use the interest rate stipulated in the lease contract. In the absence of a contractual rate, the system defaults to the state-mandated rate.
It has always been legal to collect interest. However, programming systems to calculate interest properly and adhere to the myriad of state collection laws has kept most collectors from offering the benefit. “This unique feature allows us to collect more and charge less,” said Todd Wahl, Vice President Business Operations. “We are offering a bankable benefit to our clients. Their success is our success.”
Two years in development this feature is part of Hunter Warfield's plan to cut the debt collection cycle from 6-9 months down to 2-3 months. “It all boils down to collecting more and servicing better,” says Wahl. “In the end, it's a pretty simple formula.”
Contact: John Bechtold – Marketing Director
3111 West MLK Blvd Second Floor, Tampa, FL 33607
888-486-8927 * www.hunterwarfield.com
jbechtold (at) huntwar (dot) com
SOURCE Hunter Warfield, Inc.
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