Wednesday, July 15, 2015

The Future of Debt Collection

There are already a lot of rules and regulations,many of them put in place by the Consumer Financial Protection Board, that dictate how collections agencies must deal with delinquent customers. There’s about to be one more, however, since April, and this much-talked-about addition has a lot of people worried.

The coming rule is rumored to include many more limitations on how, when, and how often delinquent customers can be contacted. It’s also supposed to require collectors to provide more information and upfront disclosures to consumers and to enhance security for consumers.

While no one can say for certain how this change will affect debt collection agencies and their
customers, it’s being predicted that more and more collections agencies will move away from the standard, high-pressured people-as-operators model and will instead choose automated collections systems. Many agencies will likely still maintain some real employees for customer service, answering questions, and the like, but probably in much smaller numbers so the staff is easier to train, cheaper to employee, and can be trained more thoroughly in how to deal with clients while following all regulations carefully.

While many are nervous about all of the changes on the debt collection horizon, it’s likely to be a good thing for all involved. Debt collection agencies will be even more tightly controlled and regulated, causing them to provide superior service, which will definitely benefit the businesses who hire them.

Businesses will get the benefit of reduced risk of litigation and formal complaints against them. And customers will enjoy respectful conversations and no harassment from debt collectors. Hopefully, these changes will lead to more resolved accounts, which truly would make every person and organization in the process happy. As you can hopefully see, these are not changes to fear but changes to embrace!

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