As we begin to round out an unprecedented year, things remain…well…unprecedented. The world of collections is weathering the storm with new strategies and technology, all while staying focused on the rippling economic effects of the ongoing pandemic. Here’s the news we’re following at TrueAccord.
What to keep an eye on
• Slowdowns at the USPS will have ramifications for the debt collection industry. Longer mail delivery times may disrupt the arrival of collections notices, which will shorten consumers’ 30-day window to pay, which may cause chaos for collectors and consumers alike. (A possible workaround? Working with TrueAccord and sending email instead of snail-mail.)
• As of last month, debt collection profits soared. As we noted in our report Consumer Debt in the Age of COVID-19, consumers flocked toward paying off their debt in full, as a result of the cash payments of the CARES act. But with a lack of additional stimulus payments coming, the next few months will be unpredictable. We’ll be watching this news closely.
• In response to the coming economic uncertainty, many banks are “bracing for impact” by adopting new technology to help streamline debt collection. But beware of the challenges.
• Proposed updates to The Fair Debt Collection Practices Act (FDCPA) are likely to take effect in October. Read up on these changes to understand how they might affect you and your debt collection processes.
• About 30 million Americans are “at risk” of being evicted in coming months. Debt collectors in the real estate industry may need to look towards new tactics to help tenants tackle their housing debt and avoid evictions.
What to look forward to
• The fall conference season is around the corner. And this year, for better or worse, we’ll be doing our panel-watching, swag-getting, and networking from home. We’re especially looking forward to LendIt and CBA Live, which have been seamlessly adapted into a virtual format. Our founder Ohad Samet will be speaking at Lendit in the panel, “New Approaches to Collections in Times of Crisis.” If you’re interested in attending, reach out to firstname.lastname@example.org for a code for discounted registration.