Happy to see our name on Forbes’ Fintech 50, recognizing industry leaders. As Forbes puts it, “Digital disruption is going to soon affect every aspect of your money: how you earn it, save it, invest it and spend it.”
Read more here.
We’ve discussed the advantages of machine learning based collections before, that’s because cost to collect drops significantly, the system’s flexibility allows more thorough and diligent handling of accounts, and—when done well—is better at liquidation than a call center. These systems have another advantage: they inherently provide better collection compliance than call centers. Why?
Continue reading “Three reasons your collection compliance officer will love machine learning based collections”
Continue reading “Three Reasons Collection Calls May Be Vanishing”
What do collection vendor managers look for in a new collection service? A vendor manager often receives 3-5 pitches a week from new collection services. As it stands, onboarding a new service is difficult due to regulatory compliance while promises of better performance abound. Still, returns are often weak. Currently, technology is limited in the collections space, so the best thing a vendor manager can do is place accounts with a service for 4-6 months; inferring collection rates from monthly remittance reports.
This dynamic no longer makes sense. Technological progress means that debt collection can be a controlled and data-driven process. Being a modern collection service means using more sophisticated tools for better results. Now vendor managers can demand more of the next service that pitches them for their collections portfolio.
Continue reading “Every 21st Century Debt Collection Service Must Include These Three Features”
In July of this year, I published a post about the importance of feedback – making it part of a team’s day-to-day way of functioning and investing in training on how to give, receive and take it beyond managers and direct reports. Three months later, I am reflecting on how TrueAccord is working to implement these principles.
In TrueAccord’s June/mid-year round of employee performance reviews, the leadership team debated about whether to spend time getting peer and upward feedback. We ended up doing it, though mostly over email (I find in-person conversations with the feedback-giver more effective – but it takes more time).
Continue reading “Active Feedback in Practice”
On September 9th the CFPB released consent orders for Encore Capital Group of San Diego, CA and Portfolio Recovery Associates (PRA) of Norfolk, VA following an investigation uncovering their attempts to collect debt that they knew or should have suspected were invalid. Hitting the US’s two largest debt buyers and collectors with a combined settlement of $72 million in refunds and penalties (as well as the inability to collect on an additional $128 million in debt) for using deceptive tactics, sends a clear message about best practices surrounding debt substantiation in the collections industry.
TrueAccord has been refining the debt dispute process since our inception in 2013. We’ve found that offering digital disputes streamlines the conversation between consumers and collectors while also reducing compliance risk. By encouraging consumers to stay engaged during the collections process, we’re creating an opportunity to discuss debt-related concerns. As a result, complaints decrease, leading conversations to move quickly into debt resolution.
The dispute process is as opaque to the collector as it is to the consumer. While respecting the 30-day window and not pressuring consumers to pay while the debt is in dispute, a collector is never quite sure whether a dispute is en route via the postal system. This leaves a long period – days and often weeks –in which the consumer knows that a dispute is “in the mail”– but the collector is still lawfully able to contact them. This creates an ambiguous situation that often leads to consumer complaints.
Originally answered on Quora: TrueAccord’s CEO, Ohad Samet, answers questions about debt collection. (Edited to expand on the answer, as well as to add notations and information.)
What should I do if a debt collection agency refuses to give any details (except the amount due) about an outstanding bill?
I visited a hospital in another state in 2014. By the time the hospital sent a bill to my temporary address, I had moved state. A few months later, a collection agency called me asking me to pay the dues. I called the hospital to verify the details given by this agency. It checked out, so I paid the hospital and got a zero due certificate from the hospital. One fine day, I find an entry in my credit report from another collection agency for the same hospital bill. (The due amount was different this time).
I called the collection agency and they said they don’t have any details regarding this bill except the amount and asked me to contact the hospital for more details.
I called the hospital, physician’s billing office and the insurance company for an explanation of benefits (EOB). The hospital and physician’s office confirms that there is no record of any dues against my name. This due amount does not show up anywhere in the Insurance’s EOB. Today, the collection agency has made another entry in my credit report for the same balance.
The agency continues to not give me any more information (in spite of multiple phone calls asking for more information) regarding the outstanding balance other than asking me to pay up. How should I solve this?
Continue reading “What if a debt collection agency refuses to give any details about an outstanding bill?”
Is feedback recognized as important? Yes. Used effectively? Nope.
Ever hear anyone in the workplace argue that feedback is a waste of time? Me neither. Every company I’ve ever worked for evangelizes the importance of feedback, but how many turn it into an effective tool for employee development?
When you’re overwhelmed by debt and creditors are calling, the allure of a clean slate via bankruptcy is like a sirens’ call. Before you make the leap overboard and decide that bankruptcy is the right option for you, you need to know what you’re getting yourself into, as well as weigh the pros and cons of the process. The first place to start is to obtain credit counseling to comply with a recent amendment to the US Bankruptcy Code, which requires it. Speaking with a certified credit counselor will help you consider all available options and ensure that bankruptcy is your only viable choice. Bankruptcy is harmful to the long term financial health of an individual, so it’s important to be ready for the associated costs, time, paper work, emotional toll and future financial repercussions.