Ever wonder what it’s like to be chased by a debt collector and why it’s so difficult to get a hold of the debtors you try so hard to reach? Truth is, if you did, you’d probably realize the opportunities collectors have to improve their processes to become more efficient. This paper explores 3 debt collection complaints and how collectors can address them to optimise their collections.
We’ve scoured dozens of uk forums and complaint repositories and have grouped together the top areas of complaints consumers have against debt collectors. The following list of 3 core issues sheds light on the debt collection experience and points to how technology can help smooth this dreaded process.
Debt Collection Complaint 1:
Being Pursued For Debt That Isn’t Theirs
The most common complaint from debtors about their collectors is that they are constantly being contacted by collectors for debt that isn’t even theirs. Not only is this annoying for the debtors, but it is a waste of debt collector’s agent’s time.
Of course, this is easily resolvable. Through simple document sharing with customers, collectors can provide evidence for why the call is being made, to which the recipient can respond with photo ID proving the mis-identification. The tact in confirming identity and debt is made easier with real time, two-way document sharing. This can go a long way for making sure debt collectors are contacting the right debtors, 100% of the time. Through this simple solution, collectors can advance their efforts towards actual debtors and leave innocent individuals alone.
A common place where these identity issues occur is within household debts. These include things like miss-traces, or situations where “a debt collector has contacted an unconnected person about paying the debt” (Financial Ombudsman Service).
For example, one woman was being harassed by the collectors for the previous tenant’s debt. She said, “I Googled the debtor and found out where she worked, and told the debt collector. I felt like I was doing their job for them. I also contacted the DVLA as she obviously hadn’t changed her licence details, but they said they couldn’t do anything about it” (Canter). This is one of many examples demonstrating the waste of time on the ends of both parties.
Debt Collection Complaint 2:
Frequent/Repeated Phone Calls
The next most common and frustrating complaint is the abundance of calls debtors receive from collectors (often bordering on harassment). Although there is regulation to try and minimize this, debtors complain how often they are being contacted.
One example is from a customer who was harassed with countless phone calls regarding his owed debt. Throughout a year, “Mr. Harrison estimated he had been bombarded with between 1000 and 1,500 calls” (Pollock). This is an example of a collector harassing their debtor to the point of extreme stress, an un-enjoyable experience for both the debtor and collector as no signs of advancement were being made.
The number of calls can be minimized through the use of an efficient in-call technology system. By empowering debtors to complete more of the processes within the call, the DCA can lessen the need for repeat calls. This enhances consumer experience as they amount of calls is reduced dramatically and collectors can continue on to their next client.
Debt Collection Complaint 3:
Continuing to Pursue Debt Already Paid
After debt has already been paid, many consumers still receive calls from collectors. This proves frustrating to many as they are uninvolved with the situation and would like to remove themselves from the call list.
Similarly, collectors are wasting their own time on the wrong individuals. Instead of focusing on important collection opportunities, they are contacting those who have already been dealt with. Technology can help ensure that collectors and debtors are on the same page at all times, not wasting either party’s time.
Debt Collectors Key Takeaways
The biggest debt collection complaints are shared by both consumers and collectors alike. Ultimately, these issues represent wasted collector time and efforts.
By ensuring you can have quick ways to match debts and debtors, reduce the number of collection calls, and stop unnecessary pursuits altogether, debt collectors can both accelerate their processes and reduce customer complaints.
Once you understand your customers biggest debt collection complaints, you then know why your consumers are not answering your calls, you can learn how to better address their needs. Through the optimization of technology, you can maximize the debt collection process and make the most out of each attempt to reach a debtor. Use technology to your advantage and create an efficient and enjoyable collection process for everyone involved.