PredictiveMetrics Launches LegalCollectionScore

Tinton Falls, N.J. – PredictiveMetrics™ (PMI) a leading provider of statistical decision scoring technology and predictive analytics introduces LegalCollectionScore™, predictive model for recovering consumer and commercial bad debt. Suits are costly, and LegalCollectionScore provides attorneys with several advantages that significantly improve the debt collection process driving faster, more efficient and profitable collections.

LegalCollectionScore predicts two outcomes. The first is the conventional probability that a debt will be paid in a given amount of time, while the second is an advanced score that predicts the dollar amount that will be paid. Attorneys also have the ability to segment based upon debt type, placement status, and balance. PMI provides extensive reporting including but not limited to age, balance, segmentation, and profitability / return on investment simulations. This two score combination, the ability segment along with the progressive reporting PMI provides, gives attorneys a comprehensive means of developing prioritization strategies based on cost, effort, and liquidation, while expending collection resources and personnel most effectively.

“In today’s economy, there is more debt to collect, fewer accounts paying per placement, and lower amounts being collected. With the higher debt balance per payment ratio, limited resources, and rising collection costs, PredictiveMetrics recognized the demand for attorneys to have a more sophisticated decision system to rank order and segment for the most cost effective work flow and profitability,” stated Michael Banasiak, president and CEO of PredictiveMetrics, Inc.

LegalCollectionScore™ is an empirically derived, multivariate statistical decision model developed by using payment behavior of charged-off bad debt. PMI applied proprietary statistical techniques to a sample from more than 10 million observations and blended it with socio-economic and demographic data (e.g., income estimates, census data, labor statistics, etc.), supplied by PMI. The information is specific to debt type, age, and balance, as well as the stage of the debt from the creditor or prior agency involved. No bureau data is required to produce these accurate scores. The accuracy of the scores, as with all of PMI’s collection scores, comes from utilizing the collector’s internal placement data and using socio-economic and demographic data, which accounts for the economy.

The model scores and reports are straightforward and easily accessible and available through a SAS 70 II Compliant secure FTP process and PMI’s software partners, minimizing IT resources.

To demonstrate LegalCollectionScore’s effectiveness, PMI offers a free retrospective analysis (back test) to prospective clients. This analysis takes historical placement data from the client’s own portfolio to prove how well LegalCollectionScore predicts payments and amounts. As a means of evaluating scoring, this analysis also allows the client to compare results with any other scoring method that it may currently have in place.

LegalCollectionScore™ joins a suite of PredictiveMetrics’ other collection scoring products including UltraCollectionScore™, MedicalCollectionScore™, CardCollectionScore™, UtilityScore™, and DebtBuyerScore™.

About PredictiveMetrics
Established in 1995, PredictiveMetrics, Inc. (www.predictivemetrics.com) has been a leading provider of statistical-based predictive scoring and analytical decision solutions for collections, debt buying, accounts receivable risk management, and underwriting spanning many industries. PredictiveMetrics’ customer focus is to work with clients to create a strategic relationship ensuring their resources are optimally utilized to make automated, knowledge-based, profitable decisions that are proven accurate through statistical validation. PredictiveMetrics utilizes proprietary software and state-of-the-art hardware, designed specifically to conduct vigorous and sophisticated analytics coupled with innovative, advanced statistical techniques. Applying customers’ business expertise together with PredictiveMetrics’ data, modeling, and resource capabilities allows PredictiveMetrics to provide decision support systems to companies worldwide. PredictiveMetrics is headquartered in Tinton Falls, NJ. For more information, please visit www.predictivemetrics.com or call 732-530-9303.