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Going modern: Getting your debt collection practices up to speed

On Behalf of | Aug 14, 2023 | Collection

It can be tough to get some consumers to pay what they owe – but modernizing your company’s debt collection process can actually help.

Essentially, if you want your debtors to pay up, you need to make it as easy as possible for them to comply with your plans. Here are several ways to do it:

Use data-driven plans

One of the cornerstones of modern debt collection is leveraging data analytics. By analyzing customer data, payment histories and behavior patterns, companies can tailor their collection efforts to individual circumstances. This enables more targeted communication and payment plans that are more likely to be effective.

Make communication convenient

Embrace a variety of communication avenues beyond traditional phone calls, such as email, text and even chatbots. Providing customers with the flexibility to choose their preferred communication method increases the likelihood of engagement and successful resolution.

Use automated reminders

Automated reminders for upcoming payments and overdue balances can be hugely helpful – especially for consumers who seem to be largely just forgetful. These notifications can be sent via email or text message, helping customers stay on top of their obligations without feeling overwhelmed.

Consider personalized payment plans

If you have the capacity to tailor your approach, offer personalized payment plans that cater to the customer’s financial situation. This approach shows understanding and willingness to work with customers, fostering a positive relationship that can ultimately encourage payments.

Get a self-service portal

If a debtor remembers to pay a bill at 2 a.m., give them that ability. Create user-friendly online portals where customers can view their account details, make payments and set up payment plans themselves. 

Automation and technology-driven solutions can streamline processes and reduce operational costs associated with manual collection efforts. Plus, it can reduce your legal risks. Automated compliance with federal and state regulations can make it easier to stay on the right side of the line when trying to collect on a bill.

Traditional debt collection processes are often outdated, inconsistent and off-putting. By embracing new technology and thinking of debt collection as a customer-centric task, you may find more success with the process. Experienced legal guidance can also help.