The size of a problem is relative to the effectiveness of the corresponding solution. In collection agencies with 1,000 seats or more, a compliance or procedure problem can be devastating. This requires a collection professional to use tools of the trade to reduce the size of a problem and successfully collect that debt. Collection Advisor posed a problem many collection agencies faced to several collection software experts and challenged them to present a solution.
Collection Problem: Creditor customer agreements with favorable language that ensures customer consent to email or text communications which includes both the creditor and its agents.
Lex Patterson President of DAKCS Software Systems
The first step should be to educate your clients to obtain expressed permission to communicate using various forms of media channels. Your clients can adopt written consent language directly into their financial disclosures and agreements, so that they allow the communication for specific purposes. Make sure the consent transfers to their agents for purpose of communication, billing, and collections.
For existing clients, confirm their contracts have up-to-date permission to communicate using the various media channels. You can then prepare an addendum to the existing collection assignment agreement that confirms the client has received permission to communicate using those media channels. As part of the addendum, add that the agency has the ability to act on the client’s behalf and include a general copy of the client's consent form.
Obtain and store consumer consent to email, text, and phone through the use of consumer access points such as portals, IVR, and electronic documents. An approach we are testing to improve the consumer experience and to quickly resolve billing is by prompting the consumer for their preferred method of contact whether it’s by SMS Text, Email, or Phone. In other words, asking the consumer to provide their number and/or preferred email address, is obtaining consent for that media channel.
Laurent Tabouelle Executive VP of Codix
This can be achieved using a flexible contracting module, where templates can be used to automatically create and modify agreements along with their follow up. A key point is having flexibility in both the contract and communications such as the ability to use emails and SMS to the customer based on location. As a follow up, it is important to track the efficiency of the various versions of the communication via an advanced reporting tool.