The proper administration of the portfolio is a responsibility of every portfolio/collection manager. This responsibility includes the assessment of the risk associated with the origination, repayment servicing and collection of the accounts as the portfolio matures.

The most costly processes without efficient procedures will skew the overall costs higher thereby consuming more of the revenue generated. Litigation, non-compliant employers and self employed borrowers are the devils that drive up collection costs.

Administrative resolutions are defined as death, disability, bankruptcy, closed school, ability to benefit and other claims that are part of your fiduciary responsibilities.

These claims are important to determining the final disposition of individual accounts that will affect the proper administration of the collection portfolio. Other administrative tasks, reporting to credit reporting agencies, add to the cost of portfolio management. Obtaining the best cost structure through negotiating with the vendors is paramount to the overall success of any strategic plan.