Delinquency Rates

We define the delinquency rate as the number of your delinquent (past due) accounts divided by the total number of your recurring accounts (term and month-to-month) multiplied by 100. This gives you a quick and accurate way to determine if you are doing a good job at collecting membership dues.

There are several reasons why a business might have a high delinquency rate. When Target and Home Depot had the data on tens of millions of customers’ credit cards stolen, we saw delinquency rates hit new highs all over the country as banks cancelled their customers' stolen credit cards by the millions. Aside from hacker breaches at massive national retailers, the most likely cause of a high delinquency rate is a failure to follow up with your customers when their payments decline. Insight provides you a great set of tools to warn you when a payment declines or when a credit card will be expiring but it’s still up to you to connect with your customer and get that updated credit card info.

You’ll notice every day that we’re constantly generating Tasks for you to complete. Tasks include making a phone call to your customer before their credit card expires or when a customer’s payment has declined. In addition to letting you know when action needs to be taken, we can also automatically email and send US postal mail to your customers letting them know about the problem. If you stay on top of your daily tasks that we notify you of, your delinquency rate will stay low. If you notice that your delinquency rate is rising, it’s almost assuredly because your employees aren’t making the customer calls assigned in the daily tasks.

Be sure to run the Delinquency Rate and Delinquency Chart reports frequently to keep an eye on your delinquency rates. And if you need help getting your delinquencies in line just give us a call!