Midland Credit Management, Inc.

The Company

Midland Credit Management, Inc. is a collection agency, committed to finding innovative ways of providing economic value to credit originators, consumer debtors, and their shareholders. They continue to refine their collection processes and evaluate new collection strategies to supplement the traditional call center approach.

At the same time, they have developed and continually update the sophisticated proprietary software that manages the movement of data, accounts and information throughout the Company. They believe that this multiple dynamic approach to collection and information management increases their opportunity to achieve enhanced returns on their portfolio investments and for their shareholders.

The Challenge

Midland Credit Management (MCM) receives and handles a multitude of media from banks and other institutions regarding the debt of the consumer. In order to prove the debt, MCM sends those statements
directly to the consumer. When they first began in the industry, the majority of debt portfolios that MCM purchased were given to them in hard copy format. They would then take those documents and forward them on to the consumer.

Many problems arose from this system and it began to be difficult to keep track of all the documents. MCM employees couldn’t keep track of what they sent, documents would be sent to the wrong address or lost in the mail, and many of the consumers claimed they never received the notice.

At this point it was the consumers’ word against MCM, making it very difficult to process the collection. MCM Project Manager, Vicky Arteaga, began to search for a solution to manage their documents more efficiently.

The Solution

In seeking a solution to move toward a more paperless and organized system, MCM’s first attempt proved to be too time consuming and ineffective to the collection process. Their documents were being scanned, but there was an excessive amount of prep time on MCM’s side before they would begin to scan it. Arteaga did more research and found Axacore and their document management product, XDOC.

According to Arteaga, “Axacore had such a fresh approach on how we could manage our documents. They were smart people with avant-garde technology and a great attitude – letting us know anything is possible to fit our needs!” MCM’s Media department began using Axacore for their scanning needs and XDOC fordocument management.

With the implementation of XDOC, MCM’s agents can quickly find documents by searching on the consumer’s name or account number. If the documentation needs to be sent to the consumer, it can be emailed, faxed or printed.

As it quickly proved to save a large amount of time and money, five additional MCM departments began to use this successful document management system.

The Results

XDOC has improved MCM’s collection process in many different ways. The entire collection process has sped up, leading to an increase in revenue. It has eliminated the need for onsite storage and faxing between branch offices. MCM now has electronic copies of all documentation, making it much easier to prove the debt to the consumer. When talking to a consumer who is disputing a collection, the collector can quickly pull up all of the account information to prove the debt.

Additionally, as the industry changes and migrates more toward the electronic delivery of documents, Axacore and XDOC continue to think outside the box as to the best approach for document management. Up until last year, 85% of the documents sent from purchased portfolios were physical documents. In 2006, 90% of the data MCM received was electronic data and sent in many different formats, making it difficult to view. Axacore standardizes the format for easily accessible viewing. “This process would have been a nightmare without Axacore” said Arteaga. “With the help of XDOC, we have collected information and managed the documents for almost 4.5 million accounts.”

For More Information

Axacore is a core technology provider of faxing and document imaging solutions. Axacore develops solutions that help organizations streamline paper-intensive business processes and automate the flow of documents to team members, customers, partners and vendors. For more information, please visit us at www.axacore.com or 1.858.427.4301.