Magazine article American Banker

Total System Finds Two Allies to Help Battle Delinquent Accounts

Magazine article American Banker

Total System Finds Two Allies to Help Battle Delinquent Accounts

Article excerpt

Total System Services Inc. took two steps in recent days to help its financial institution clients cope with their loan problems.

The Columbus, Ga.-based credit card processor formed an alliance with First Performance Corp. to help prevent chargeoffs of delinquent accounts, and another with Rothenberg Systems International for debt collection and recovery management.

In each case, Total System "offers to clients a service that they couldn't get as cost effectively elsewhere," said Andrew W. Marks, vice president.

About a year ago, Mr. Marks said, the company began to consider options for dealing with the delinquency problems then on the horizon. The idea was to make support services available to Total System users as part of their processing packages.

The strategic-alliance approach won out over building such capabilities in- house or making acquisitions. The two deals were announced before the start this week of the American Bankers Association's bank card conference in Orlando.

First Performance Corp. is a specialist in the pre-chargeoff niche of the collections business. It deals with delinquent accounts before the writeoff point, acting according to client-bank dictates to stave off losses while retaining customers.

The Fort Lauderdale, Fla., company uses early-stage collections approaches pioneered in the 1980s by Integratec, a company founded by former bank credit card executive A. Wayne Johnson.

Integratec was later bought by First Data Corp. …

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