Deceased Debt Sales Study Finds Few Are Selling

While 86 percent of the nation’s largest credit grantors sell contractual charged-off debt, only 14 percent are active sellers of deceased account debt, according to a recent study commissioned by DCM Services, LLC. Further, though nearly 75 percent of those not selling deceased debt were willing to consider it, the prospect of selling deceased debt raised concerns about brand risk and obtaining a fair price. These are among the findings DCM Services examines in a new executive brief on deceased debt sales being released today at the DBA International Annual Conference.

“With the current financial environment and the need many creditors have to raise capital, we wanted to understand the viability and scope of the market for deceased debt sales,” said Steve Farsht, president and COO, DCM Services. “This study clearly highlighted the concerns creditors have about selling deceased debt. These insights, coupled with our expertise in deceased debt resolution, provide the basis for our report that highlights strategies credit grantors can use to mitigate the risks involved in the sale of deceased debt.”

Brand risk and price were the two most common concerns creditors expressed when asked about deceased debt sales. In the executive brief, DCM Services explores the unique brand risks involved in recovering deceased debt and ways in which creditors can improve their brand protection. Additionally, the executive brief identifies and evaluates the five factors that drive the price for deceased debt including portfolio quality, average balance, volume, date-of-death vintage and percentage of estate accounts.

“As a company focused exclusively on decedent debt resolution, we understand the unique risks involved in recovering deceased debt,” said Farsht. “The good news is that by leveraging the latest technology and survivor-sensitive recovery processes, creditors can protect their brand and obtain a fair price on deceased debt accounts.”

DCM Services engaged O’Shea Consulting to conduct the survey on behalf of its sister company, Forum Credit Company, LLC, a deceased debt purchasing entity. The survey included executives from 21 of the nation’s largest credit grantors across the financial, retail, auto and telecommunications industries.

For a copy of DCM Service’s executive brief on deceased debt sales, please visit www.dcmservices.com/debtsales.

About DCM Services
Minneapolis-based DCM Services, the industry leader in deceased account recovery, helps companies that issue credit deal with the deaths of their customers. Its unique Survivor Recovery Services approach focuses on: increasing recoveries, protecting brand relationships and developing survivor relationships – with respect and sensitivity. DCM Services’ exclusive Probate Finder Solution® collects, consolidates and organizes probate-filing information on a comprehensive, nationwide basis. The company was founded by James Balogh and Gary Becker, pioneers in the debt recovery industry. www.dcmservices.com

About O’Shea Consulting
John O’Shea has been an active member of the collection industry since 1986. Over the past year, John has employed his considerable experience in a number of successful consulting engagements. Focusing on mergers and acquisitions, offshore labor strategies, debt sales and market research, his practice has provided service to a number of marquee clients. In John’s career he has served as a founder and principal of Triad Financial Services, run the distressed debt purchasing operation for GMAC-ResCap and was executive vice president of AllianceOne.