“UNIQUE COLLECTION” METHODOLOGYNearly every debt collection agency (DCA) proudly establishes that their uniquely high collection rates are because of their particular collection methodology. It is certain that each collector, through their years of experience, has found what works best for them, their debtor base, and have identified what are the critical steps for an efficient and successful debt collection pursuit. Despite their unique approaches, they share several core tasks and challenges. This paper looks at the basic components and paints a picture of where simple technology changes can step-change collection yields and debtor/collector interactions.
YOUR OUTDATED TECHNOLOGY IS HURTING YOUR COLLECTIONSDespite the proliferation of advanced communication technologies - including texting, internet and more - many collection firms have been reluctant to advance their collection practices. Rightly so, DCAs have been cautious with compliance concerns, but this enormous fear of new technology has hurt the collection collections yield. As a result, there are some obvious technological advances that can improve the industries efficacy and debtor/collector dynamics. Technology opens up the door towards propelling the debt collection industry into its most prosperous stage, so it is shortsighted how many firms have yet to implement these new processes.
DCA TECH ACCELERATES COLLECTIONSThe often acrimonious discussions between debtors and collectors are, in part, a result of poor communication and poor technology. The last thing both parties want is a need to go to court in order to resolve the payment issue. As there is no sign of debt slowing down any time soon, it is necessary for collectors to modernize their methods in order to adhere to their debtor’s way of life and minimize the possibility of involving the legal system. By providing customer-friendly, simple, collaborative and mobile ways to understand and address debt, collectors can match their debtors lifestyle. Specifically, new technologies can remove the friction from many collection calls and move calls quickly towards collaborative resolution.
TECHNOLOGIES THAT HELP DCAsSo while each collector has their own processes and tactics, it is clear that they need to make their collection processes relevant for today’s new debtor. For that, it means they need to be able to connect with debtors wherever they may be, create a collaborative collection dialogue and enable instant action and repayment.
- Need to be able to work with debtors no matter where they are. With more and more people without a landline, it’s critical to be able to engage debtors even if they are out and about on their mobile phone.
- In today's environment, it's important to establish a collaborative debt collection process. As many debtors are reluctant to concede with the process, it is critical to establish rapport with them and use multiple means to move collections forward towards an amicable resolution. While on a call, debt collection agencies can both guide and encourage debtors with documentation and supporting calculation towards reaching an agreeable payment plan.
- As a result of the difficulty and often tension involved in collection, it is critical to make processes as friction-less as possible. This means that document exchange, repayment plans, and calculations need to be shared in real time - without the need to run around and get documents printed or scanned. Maximize your time on call and maximize results.