Category: Machine Learning

Is Cold Calling Dead for Debt Collection?

By on October 1st, 2025 in Customer Experience, Machine Learning, Product and Technology
The blog title set in front of a grave stone with a phone symbol on it.

As a strategy, cold calling for debt collection has plenty of roadblocks like caller ID, spam filters and number lookups that make success difficult. Many experts in the industry are wondering if cold calling is about to enter an ice age because of a feature in Apple’s new IOS 26 update. It’s estimated that there are 130 million iPhones in the US, and many of them are about to have advanced call screening software. 

What does this mean for the debt collection industry? How does this new update work and put more power back with consumers? Join us as we break down this newest barrier to cold calling and what it could mean for businesses looking to maintain or improve their collections. 

How Does Apple IOS 26 Affect Cold Calling?

Before we dive into the industry impact, let’s take a minute to explain how Apple’s IOS 26 update affects cold calling strategies. This software update is giving iPhones 11 and newer call screening software as part of Apple’s push for higher consumer privacy. 

When a consumer receives a cold call, the caller will be prompted to say their name and reason for contacting them. The consumer will see a transcript of the caller’s response on their phone screen. From there, the consumer has the option to accept or ignore the call. By default, iPhones will screen phone calls from unknown and unsaved numbers. The goal of the feature is to protect more iPhone users from scam and unwanted sales calls that have seen a dramatic rise in the last few years. 

Is Cold Calling Really Dead in Collections?

Is cold calling for debt collection really dead? The answer depends on who you ask. Experts in the industry are split into two camps: 

  • Cold Calling is Dead for Bad Calls: Many businesses and experts in the debt collection industry say that the strategy is only dead if it’s not targeted, informed by data and/or compliant. In their view, this update is the death of “bad” cold calling. The new iPhone screening process is also seen as an opportunity for collectors to refine their elevator pitch for more effective cold calls. 
  • Cold Calling is Dead For Good: Others in the industry pose that since so many more consumers now have access to easy call screening, cold calling is no longer viable. They predict that this will be the catalyst for the vast majority of collection strategies moving to digital communications.

To answer the original question, it’s unlikely that cold calling will go away entirely. There will be instances where a cold call is the best chance at reaching certain consumers. Even though it’s not the majority, some people still prefer to be contacted by phone. Cold calling won’t be wiped out completely, but collectors need to consider shifting to an omnichannel approach for effective debt collection.

Why Cold Calling for Debt Collection Is Seeing a Downturn 

Cold calling isn’t dead, but it’s no longer the most effective collection strategy available. There are three core factors that are contributing to the decline of cold calls: 

  1. Consumer Privacy Movement: Consumers want more privacy than ever before. The rise in scams and algorithm data gathering are just some of the factors contributing to this movement. Phone calls are perceived as one of the most personal communication channels, and a cold call often feels like an invasion of privacy. 
  1. Strict Regulations: Over the last few years, the regulations around outbound calls for debt collection have gotten more strict. For example, Regulation F’s 7 in 7 rule prohibits collectors from calling more than seven times in a 7 consecutive day period. It’s increasingly complicated to compliantly cold call customers, and code-based compliance available with digital communications offers less risk for businesses. 
  1. Shifts in Communication Preferences: Most consumers want to be reached through their preferred channels. And 59.5% of consumers prefer email to be the first channel a business uses to contact them. If you contact a consumer through their preferred channel, it can lead to a 10% increase in payments. Consumer communication preferences have already gone digital, and traditional options like phone calls become less popular each year. 

Cold Calling Can Live On in Omnichannel Strategies

Cold calling for debt collection is going to live on, but the strategy needs to evolve and become part of an omnichannel approach. Introducing digital communication channels to your collection strategy helps you engage customers with the right message, at the right time and through the right channel. 

An omnichannel approach gives your collections efforts the ability to service more of your customer portfolio and easily scale if more accounts are added. It’s a more streamlined method compared to using segmentation or propensity to pay models in outbound calling that limit the number of people you’re able to reach at one time. 

Many debt collectors are also shifting to integrate payment portals into their collections strategy. A payment portal gives consumers the ability to schedule payments at their own convenience, which helps improve repayment rates. It also streamlines operations and reduces compliance concerns since agents no longer have to call-to-collect. 

Personalize Your Collections Strategy with an Omnichannel Approach

The process of shifting your collections strategy to an omnichannel approach doesn’t have to be a challenge. TrueAccord’s digital first approach to debt collection can efficiently and compliantly scale to any volume of delinquent or defaulted accounts. Are you ready to maximize your collection results with a digital first approach? 

Contact our team today and schedule your consultation. Together, we can build a personalized experience that leads to better collection results.    

The Importance of Social Proof in Debt Collection

By on September 17th, 2025 in Industry Insights, Customer Experience, Machine Learning
The blog title set in front of a person leaving a customer review on their phone.

It’s common when you put a debt collection company’s name in a search engine, one of the most popular queries is asking if the business is legit. For many consumers, there’s an inherent doubt that comes with receiving a debt collection communication, which often leads to the message being ignored. 

If a consumer gets reassurance from an unbiased source (like another consumer), any doubts about interacting with the company often fade away. This concept is called social proof, and it’s extremely important in the debt collection industry. Let’s take a closer look at the relationship between social proof and debt collection. 

Social Proof Starts with Ethical Debt Collection Practices

The process of having and paying back a debt can be a stressful experience for many consumers, especially when facing financial hardship. It’s an expereince that is more intense and nerve wracking when companies use aggressive collection tactics like excessive calling or threatening. These more forceful approaches are part of the reason why many consumers doubt the legitimacy of debt collection messages. 

The first step in reducing consumer uncertainty is practicing ethical and consumer-friendly debt collection. It’s why more companies are taking an omnichannel approach to sending repayment notifications. Digital communication channels like email and SMS/text give consumers more opportunity to engage with messages on their own terms. When the ask for a repayment is more humane, a consumer is not only more likely to act on it, but share their positive experience with others or online. 

When a consumer sees that someone else had a positive experience with a certain debt collector, it can reduce their anxiety about getting a repayment notification. Oftentimes a few positive affirmations from people in a similar financial situation is the difference between making a payment and ignoring a message. 

Social Proof Can Encourage More Engagement from Consumers

When a consumer receives a debt collection notification, they might feel alone, isolated and unsure of the best way to handle the situation. In fact, this is a common reaction for many stressful events we experience in life. In these situations, many people’s first instinct is to seek advice from others who can relate to their circumstances. For example, if they hear from another consumer that the process of making a payment was easy, engaging with the notification doesn’t feel as intimidating. 

Debt collection companies themselves can also offer consumers social proof. A great way to do this is by providing insight into how other customers handled their financial obligations. If your business sends an email notification to a customer, you could offer examples of how other customers with a similar balance chose a payment plan to resolve their debt. A subtle tip on how others in their situation took action can increase the likelihood of that customer making a repayment. 

The connecting thread between both these instances of social proof aren’t phrasing things as a demand, they’re suggestions backed by the experience of peers. That’s the core of social proof that can increase repayment rates and build trust with consumers. 

Social Proof Helps to Humanize Debt Collection

Social proof has the power to turn the perception of a debt collector from an intimidating unknown to a partner that helps people with financial wellness. By putting this notion into practice, debt collectors can improve their reputation with consumers. What does this look like in action? Here’s a few ways debt collection companies can bring this to life: 

  • Leverage AI in Debt Collection: AI can be used in debt collection to create a better experience for consumers. Machine learning platforms can figure out the best way to honor each individual customer’s communication preferences. These AI processes help make the customer feel more valued, improving the likelihood they will share their experience. 

It’s important that all social proof strategies being used by debt collectors follow legal guidelines and don’t overstep on customer privacy. The power of social proof is its honesty, transparency and ethical use. When it is used responsibly and paired with other strategies like leveraging AI in debt collection, social proof can improve recovery rates. 

Boost Recovery Rates with AI Debt Collection Strategies

Social proof and AI debt collection strategies are a great way for businesses to collect more from happier people. If you want to empower your debt collection solutions with machine learning and a consumer-first mindset, TrueAccord is here to help. 

Contact our team today to learn more about how we can handle all your delinquency needs.     

How Student Loan Debt is Impacting the Debt Collection Industry

By on August 8th, 2025 in Industry Insights, Customer Experience, Machine Learning
The blog title set in front of a piggy bank wearing a graduation cap.

The path to getting a higher education is a courageous decision that millions of Americans start each year when attending college. It sets the foundation for countless careers and drives personal growth that lasts a lifetime. However, education is expensive and paying back the loans can be challenging—an estimated 5.8 million student loan borrowers have delinquent accounts. 

This number could get even higher with student loan forgiveness ending, interest on the debt resuming and shifts repayment options. Student loans and debt collection servicing have always shared a close relationship. And the current changes to the federal student loan system is primed to send shockwaves through debt collection services across the nation. 

Learn how student loans have changed in 2025 and trends your business needs to look out for as the situation continues to evolve. 

How Student Loans Have Changes in 2025

Before we dive into the implications for the debt collection industry, it’s important to understand some of the key changes recently made to federal student loans. The current administration signed into law the “One Big Beautiful Bill Act” on July 4th, 2025. This legislation overhauled the student loan system: 

  • Student Loan Forgiveness Paused: Borrowers on SAVE plans are seeing the end of payment forgiveness. Right now, payments are required and accruing interest on loans restarted on August 1st, 2025. 
  • Creation of Repayment Assistance Plan (RAP): RAP is an income-based plan for new borrowers that requires a minimum payment regardless of a person’s income level. This plan will only be approved for cancellation after 30 years of qualifying payments. 

Student Loans and Their Impact on Debt Collection 

One of the biggest and most immediate effects that student loans will have on debt collection solutions is a surge of collection activity. With loan forgiveness paused, the millions of delinquent accounts are going to be subject to collection efforts. To start, the federal government is putting increased focus on accounts that are 60 days or more delinquent. 

This means that standard debt collection communications channels like phone calls and physical mail are going to be much more crowded for the foreseeable future. It’s also likely that some customers your business talks to have this type of financial obligation. That means no matter what debt type you’re collecting, there is more competition to get their attention through non-digital channels and less funds available to repay debts. 

We Could See An Increase in Involuntary Collection Tools 

When a consumer defaults on their student loan debt, the federal government has strong tools to help them collect payments. After 270 days pass without a payment being made, the government can garish up to 15% of the borrower’s paycheck. Any federal tax refunds can also be withheld and applied to the loan. 

Any student loan accounts that are in delinquency or have defaulted can also be reported to national credit bureaus, causing damage to the borrower’s credit score. Consumers who are going through this process may be less likely to make payments on other debts while they try to keep up with student loans. The common thread is that more student loan borrowers could have reduced disposable income once all the changes take effect. 

New Student Loan Rules Could Lower Credit Scores 

Experts agree that the new student loan rules have a strong possibility of lowering credit scores for existing borrowers. Since the payment forgiveness that started shortly before COVID is ending, borrowers will likely need time to make payments as other costly necessities (like the rise of grocery costs) take their attention. 

It’s possible that this will have widespread effects on consumer credit scores, making it more difficult for these borrowers to participate in the financial system. Specifically for student loans, a lower credit score makes it harder for borrowers to consolidate the debt at an affordable interest rate. 

A lower credit score also makes it more difficult to access new lines of credit, a common tactic consumers use to pay off debt. Borrowers with a lower credit score will get higher interest rates on new loans, making it more expensive to get loans and more likely that payments made on debts will be in smaller amounts. To help navigate this challenge, debt collection services that offer consumers more payment options could have greater success.  

Increase Your Collections Performance with an Industry Leading Platform

Student loan debt is primed to have a lasting impact on debt collection solutions. If you want to leverage AI that adapts to these situational challenges to collect more from happier people, TrueAccord is here to help. 

If you want to empower your debt collection solutions with machine learning and a consumer-friendly digital experience, contact our sales team today.   

Q2 Industry Insights: Reconciling consumer, economic indicators and embracing AI

By on July 29th, 2025 in Industry Insights, Customer Experience, Machine Learning
The blog title with an illustration of a lightbulb.

Despite economic uncertainty, Americans continue to spend, albeit what they’re spending on has shifted. After two consecutive months of reduced spending, consumers came back in June with purchasing focused heavily on necessities like clothing and personal care, rather than electronics or appliances. Discretionary spending also stayed strong on restaurants and bars, indicating that while consumers are feeling some amount of pressure from the economy, it hasn’t really hit their wallets just yet. But economists and key indicators are foretelling more financial challenges ahead, so consumer sentiment may not be keeping up with reality.

The debt collection industry is navigating a period of transformation via a combination of regulatory shifts, technological advancements and evolving economic pressures. Key developments continue to reshape collection strategies, compliance requirements and the tools used to recover outstanding debts. As you protect your bottom line in a rapidly evolving consumer financial landscape, let’s look at what you should consider as it relates to debt collection with an eye toward the second half of 2025.

Key Economic Indicators

After several months of speculation and fluctuation, inflation is starting to heat back up, potentially showing the first impacts of tariffs and signaling what’s ahead. Consumer prices rose 0.3% in June after rising 0.1% in May, pushing the annual CPI inflation rate higher to 2.7%, the highest since February. The increase was driven by higher gas prices and a broad assortment of goods showing the effects of businesses sharing higher import costs with consumers.

On the jobs front, the economy added 110,000 jobs in June. Looking at the number of jobs added through the first part of the year shows an average of 124,000 jobs per month, which is significantly lower than last year’s monthly average of 168,000. With layoff activity relatively low and wage growth remaining decent, economic uncertainty has slowed the pace of hiring and created a somewhat stagnant employment market.

The Federal Open Market Committee held rates steady at 4.25-4.50% at their meeting in mid-June, and Wall Street economists are predicting the central bank to continue their wait-and-see approach at their next meeting in July given June’s reported CPI and expected PCE inflation increases. Bets are now on a September rate cut if the inflation threat cools and the jobs market weakens more noticeably.

The Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit for Q1 2025 showed that total household debt in the US reached $18.20 trillion, a $167 billion or 0.97% increase from the prior quarter. This growth was primarily driven by increases in student loan and mortgage balances, while credit card and auto loan balances decreased. The report showed delinquency rates rising, with 4.3% of outstanding debt in some stage of delinquency, the highest level since the beginning of 2020.  

Mortgage loans experienced a significant rise in early and mid-stage delinquencies across all credit categories in May. Mortgage delinquencies increased to 1.03% from 0.92% the previous month, suggesting that the housing market might be showing initial indicators of financial strain among homeowners.

What’s Impacting Consumer Finances?

Just as more student loan delinquencies are reported and sent to collections, borrowers who had previously been granted an interest-free forbearance period under the Saving on a Valuable Education (SAVE) Plan will lose those benefits. On August 1, the administration will resume interest charges on the accounts of around 8 million borrowers as the SAVE program and several other income-driven payment options end. Overall, the change will see borrowers being charged more than $27 billion in interest over the next 12 months, which will have wide repercussions on students and families.

And in a reversal of a move by the Consumer Financial Protection Bureau (CFPB) earlier this year, a federal judge recently blocked a rule that would have removed unpaid medical debt from the credit reports of about 15 million consumers who carry a total of roughly $49 billion in medical debt. This financial burden could influence creditworthiness and access to loans for many.

What’s Impacting the Debt Collection Industry?

On the federal level, the CFPB has announced a new set of supervision and enforcement priorities for 2025. The bureau intends to reduce the number of its supervisory exams, focusing instead on cases of tangible consumer harm and actual fraud. While this may mean fewer routine audits for collection agencies, it signals more intense scrutiny on practices that directly and negatively impact consumers, with a continued focus on areas including mortgages, credit reporting, and FCRA and FDCPA violations.

In June, the CFPB also published a policy statement in the Federal Register outlining its approach to addressing criminally liable regulatory offenses under statutes including the Consumer Financial Protection Act and Truth in Lending Act, among others.

In efforts to enhance efficiency, the debt collection industry is rapidly embracing new technologies, and artificial intelligence (AI) and digital communication platforms are at the forefront of this technological wave. AI is being leveraged more widely to personalize consumer engagement, predict payment likelihood, and optimize collection strategies. Meanwhile, digital channels like Rich Communication Services (RCS) are gaining traction as innovative methods for consumer contact, offering more interactive and self-service options.

However, the use of technology and collection tactics remains under the watchful eye of regulators. In a significant enforcement action in June 2025, the Federal Trade Commission (FTC) secured a permanent ban against a debt collection operation found to be using deceptive and harassing methods to collect on “phantom debts.” This action underscores the agency’s ongoing commitment to cracking down on illegal collection practices and serves as a reminder to the industry of the severe consequences of non-compliance.

How are consumers feeling about their financial outlook?

In analyzing consumer sentiment, it’s important to note that the following surveys relay responses may have been taken before the latest inflation figures were released, so there may be an incongruity in reporting. 

The Fed’s June Survey of Consumer Expectations showed that households’ inflation expectations decreased at the short-term and remained unchanged at the medium- and longer-term periods. Unemployment job loss and household income growth expectations improved while spending growth expectations slightly declined. In general, households were more optimistic about their year-ahead financial outlook.

The latest University of Michigan consumer sentiment survey, reporting from mid-way through July, showed that Consumer sentiment ticked up about one index point to 61.8 from June, reaching its highest value in five months, but still 16% below December 2024 and its historical average. Expected personal finances fell back about 4%, with the report noting that consumers are unlikely to regain their economic confidence until they feel assured that inflation is unlikely to rise.

The Conference Board’s Consumer Confidence Index deteriorated by 5.4 points in June, falling to 93.0 from 98.4 in May. The report showed less positivity about current business conditions and job availability, as well as more pessimism about business conditions, job availability and income prospects over the next six months.

What Does This Mean for Debt Collection?

The debt collection industry in mid-2025 is at a pivotal juncture, tasked with balancing the adoption of powerful new technologies and navigating a challenging economic environment while adhering to an evolving regulatory framework. The ability to adapt to these concurrent trends will mean success for businesses in this sector. For lenders and collectors, here are a few things to keep in mind:

  1. Consumers expect more in debt collection. Gone are the days of debt collection letters or calls from unknown numbers eliciting a productive response. Now, consumers want empathy, understanding and convenience in their financial matters. Keeping up with consumer expectations can mean the difference between collecting debt and not.
  1. Self-service is one of those key expectations. Convenience by way of self-serving is a win-win for your business and consumers. Offering a comprehensive self-serve portal means consumers can engage whenever they want (even outside traditional FDCPA-regulated hours) and reduces resources needed to manage accounts and process payments.
  1. Ready or not, AI is here. Technology is already transforming debt collection by changing the way lenders and collectors engage with consumers, and if you’re not getting on board, you’ll find your business soon left behind. The time to thoughtfully adopt AI is now. Not sure where to start? Here are the must-know tech terms to get you going.

SOURCES:

One Size Doesn’t Fit All in Debt Collection

By on July 25th, 2025 in Customer Experience, Machine Learning, Product and Technology
The blog title with a picture of a cat sitting in a box that's too small.

What if there was an ice cream shop that only sold vanilla? Just one flavor, offered in one size without any extra options. How much business do you think this shop would get? We know that it’s probably not a profitable business model because it contradicts one of the most important trends seen across countless industries – honoring customer preferences. 

In the debt collection industry, there’s a lot of businesses out there practicing the “single flavor” or one-size-fits-all approach. Customers only get sent notices through one or two communication channels and have a single type of payment option. 

Debt collection solutions shouldn’t be one-size-fits-all. If you’re interested in learning how to improve the debt collection customer experience, it starts with finding ways to accommodate more preferences. 

Why Isn’t Personalization More Common in Debt Collection Solutions?

It’s no surprise that consumers have personal preferences that impact their engagement with businesses. One of the most important preferences is how they want to be contacted. While phone calls used to be the go-to method for debt collection, in today’s digital world any unknown number is usually automatically labeled as spam in a person’s mind. 

In the debt collection industry today, there’s no shortage of communication channels. So why do so many debt collection companies go for a one-size-fits-all approach through a more outdated method like phone calls or physical mail? There’s a few challenges that can help explain it: 

  • Content Library Creation: The process of building and managing an extensive digital content library for debt collection isn’t easy, especially given compliance requirements for all the different channels like email, text, self-serve portals. This process requires writers and content experts who understand debt collection solutions and the pain points consumers experience.
  • Lack of Resources: Many debt collection companies lack the resources to build out the strategy and operations for multiple or digital channels.  
  • Not Leveraging AI: Without AI and machine learning, it’s much more challenging to figure out what type of content and channel resonates with each individual and implement customized communications at scale

Just like the scenario we listed above, only offering “one flavor” usually leads to less effective debt collection solutions, lower performance and unsatisfied consumers. 

Improve the Debt Collection Customer Experience with Personalization

The main reason to take a personalized approach to debt collection solutions is to help more consumers repay debts and reach greater financial health. To do that, consumers need to engage with debt collection messages. For starters, 46% of consumers expect companies to reach out to their preferred channels. When this happens, companies see a 10% increase in payments from delinquent customers. But preferred channels aren’t the same for everyone.

With financial matters (including debt collection and bill notifications), people increasingly prefer digital communication channels. In fact, 59.5% of consumers list email as their first contact choice for communication from a company. When you meet someone’s expectations, payment reminders are more likely to be noticed and acted on. While honoring a consumer’s preferred channel is important, it’s not the only customization that can make an impact. 

Customizing Content Gets Results

It’s common for debt collection companies to have a few sets of communication templates, but the content itself doesn’t change much. But with an eye toward data-driven changes and testing, there’s always an opportunity to adjust content to catch attention and better engage consumers. 

For example, TrueAccord had a client that wanted to improve the performance of debt notification emails. The TrueAccord team created emails that included animated GIFs, an idea supported by machine learning data. This strategy led to a 6% increase in click rates and a happy client that became excited about future tests.

The best debt collection solutions treat content as a living strategy. That means updating content templates on a regular basis and testing new ideas to keep up with shifts in customer preferences. One crucial element that makes this possible are AI tools that measure effectiveness and ensure the content is compliant. 

Personalization is Better with an Omnichannel Approach

An omnichannel approach to debt collection solutions means leveraging a combination of communication channels for consumers to engage with. Every channel like email, text, self-serve portals and more are integrated into a consumer-centric approach. These channels work together to uncover the best option for each individual. 

Beyond simply adding digital channels, companies need to adopt a customized omnichannel debt collection approach to engage consumers through preferred channels. At TrueAccord, this is achieved through a patented machine learning engine called Heartbeat. Consumer engagement with Heartbeat is automated and optimized by data-driven algorithms that decide what timing, message and channel will be most effective for each individual person. 

By finding the right timing, message and channel, your debt collection solutions won’t just help more consumers engage in debt repayment, but you’ll recoup more in a cost-effective way. 

See What TrueAccord’s Debt Collection Technology Can Do

Does your business want to collect more from happier customers? At TrueAccord, we use AI tools to offer a personalized and self-serve experience that honors consumer preferences. To learn more about our industry-leading results, connect with our team today!

Have Consumer Expectations Changed in Debt Collection?

By on July 18th, 2025 in Customer Experience, Industry Insights, Machine Learning
The blog title in front of a person looking at their smart phone.

As recently as 15 years ago, consumer expectations about the debt collection experience looked starkly different than they do today. Back then, people expected debt collection communications to come as a piece of physical mail, and consumers were more likely to answer the phone for an unknown number before spam calls and call labeling and blocking became the norm. Companies who were looking to collect on a debt often used aggressive tactics, and customer satisfaction wasn’t a priority as long as some of the money owed was recovered. 

Now, consumers want empathy, understanding and convenience from the companies they interact with, especially in financial services. These shifts in consumer expectations continue to spark changes in debt collection trends and have led to more businesses investing in digital strategies to better engage with consumers. Join us as we take a more in-depth look at how consumer expectations in debt collection have changed and what it means for your business. 

Customer Satisfaction is a Key Debt Collection Trend 

Consumers today want their problems in financial matters resolved sooner rather than later. A recent survey done by TCN on consumer expectations found that financial companies are seeing a decline in customer satisfaction. One of the main drivers of this trend is people reporting that customer service efforts aren’t solving their problems effectively. A key benchmark used in this survey looked at how often financial service businesses were able to solve customer problems on first contact.

Only 13% of survey respondents said that their problem is always solved the first time they reach out. The more someone is forced to call back or wait for a follow up, the less likely they’ll be to engage with the company moving forward. For debt collection, that means fewer payments the longer a consumer has to wait. These survey findings stem from the debt collection trend of consumers wanting to fix problems on the spot. This notion is part of the reason why self-service portals and mobile apps have become the preferred method of resolving financial matters. 

One key digital debt collection strategy is offering your customers more options that are easily accessible to them. In fact, 59% of consumers in debt want more flexible payment options. If your business is trying to improve its debt collection performance, giving your customers more options will often lead to higher levels of satisfaction. The proof of this digital debt collection trend can be seen with TrueAccord. Roughly 98% of TrueAccord customers resolve their debts with self-serve options and don’t ever interact with a human in the process. 

Preferred Communication Channels for Bill and Debt Notifications Have Changed

Today, there’s no shortage of ways to send customers bills and debt notifications. For many companies out there, these notifications are sent through channels that are convenient and/or familiar to them, which doesn’t always align with consumer preferences. The more in-tune businesses are with consumer preferences, the more likely their communications will be engaged with. For businesses looking to recover debt, that means better collections performance and happier customers. 

Let’s walk through an example. According to the same TCN survey, 47% of consumers prefer to be contacted by email for bill and debt notifications. Around 25% of Gen Z and 22% of Millennial customers prefer to be notified by push notifications through mobile apps. Your digital debt collection strategies need to take these expectations into account to maximize engagement. Even though email was the most desired communication method, every consumer is an individual with their own preferences. 

Some of the best digital debt collection strategies leverage AI and machine learning to test and uncover the best channel for every individual. TrueAccord uses its patented machine learning engine Heartbeat that learns from every customer interaction to determine the best step to take with each consumer. It’s a personalized approach to debt collection where consumer expectations and preferences are at the core of every communication. The result is collecting more from happier people. 

Convenience is King in Digital Debt Collection Strategies

In financial industries like banking and debt collection, convenience has emerged as one of the most important consumer preferences. With how critical messages in these industries often are, consumers want ways to be able to easily address them so the problem doesn’t linger and cause prolonged stress. For further proof of this trend, a recent survey by the American Bankers Association showed that 55% of consumers prefer mobile banking. Only 8% of people surveyed go to a physical branch for their banking needs. 

The consumer trend of wanting more convenience through self-serve options is carried through into the debt collection industry. TrueAccord, for example, has been able to honor this consumer trend with its self-service portal. It’s a low friction way consumers use to pay off debt and should be a key strategy leveraged for digital debt collection. 

Based on research done by McKinsey, consumers who digitally self-serve resolve their debts at higher rates and are much more likely to pay off the debt in full. Plus, the customer satisfaction is much higher with self-service portals compared to making a payment over the phone. These trends emphasize the importance of convenience. But just don’t take it from us, here’s what a real TrueAccord customer had to say: 

“Thank you for being patient and for having a portal that makes it easy to make the payment without filling out a bunch of stuff and having to make an account or something.”

Stay On Top of Consumer Expectations in Debt Collection with TrueAccord

It can be challenging to stay on top of consumer expectations in debt collection. But with the right partner, your business can improve debt collection performance while increasing customer satisfaction. 

TrueAccord is a leading digital debt collection agency that’s powered by machine learning to provide a consumer-friendly experience that honors their preferences. Schedule a consultation today to learn more about how our platform can handle your delinquency needs. 

Beyond the Word “STOP”: Why Businesses Need to Expand How Consumers Can Opt-Out of Communications

By on April 2nd, 2025 in Industry Insights, Compliance, Customer Experience, Machine Learning, Product and Technology, User Experience
TAC Blog Beyond the Word STOP

In today’s digital communication landscape, businesses—especially those that use digital outreach to engage delinquent consumers to collect debts—are facing increasing pressure to ensure they respect consumers opting out of communications from a particular channel.

While the word “STOP” has been a widely recognized method for consumers to unsubscribe from text messages, the reality is that consumers may express their desire to opt out in various ways. And with the advent of accepting MMS (Multimedia Messaging Service) replies that allow for multimedia content like images, videos, and audio, along with longer text messages, consumers are bound to get creative.

On top of consumer preferences, new and upcoming regulations from the Federal Communications Commission (FCC) and the Consumer Financial Protection Bureau (CFPB) are making it crucial for businesses to go beyond just the word “STOP” and ensure they have a comprehensive system in place to honor opt-out requests promptly and accurately.

Keeping Up with the Evolving Regulatory Landscape

The FCC is currently revising its rules as part of efforts to reduce unnecessary regulatory burdens, particularly those that affect automated communications like debt collection calls and texts—a shift in policy could influence how businesses, especially those in debt collection, approach consumer opt-out requests.
Two FCC orders in particular have direct consequences for companies that rely on automated communications, including debt collectors:

1. The 2024 FCC Order:

  • Consumers can revoke consent for robocalls or robotexts in “any reasonable manner,” making it vital for businesses to broaden their opt-out options beyond a single keyword like “STOP.”
  • The revocation applies not only to the channel through which the request was made but also to any other forms of communication at that phone number.
  • Businesses must process these requests promptly, no later than 10 business days.

2. The 2025 FCC Order:

  • This order strengthens rules regarding call blocking, which may affect legitimate debt collection communications. It mandates that service providers block calls they deem “highly likely to be illegal,” based on their internal Do Not Originate (DNO) lists.
  • The risk is that legitimate calls could get mistakenly blocked, disrupting lawful debt collection efforts.

Going Beyond “STOP”: Why It’s Essential for Businesses

As these new FCC orders take effect, why else do businesses need to expand their opt-out processes? Let’s start by looking at existing regulations and requirements along with other factors that can impact an organization’s ability to engage consumers, collect debt, and ultimately their bottom line.

  • Compliance and Legal Risk: By honoring only “STOP,” companies may miss other legitimate opt-out expressions, risking violations of regulations like the Telephone Consumer Protection Act (TCPA) or the Fair Debt Collection Practices Act (FDCPA). Failure to comply can lead to legal consequences and damage to a business’s reputation.
  • Efficiency: In industries like debt collection, where high volumes of communication are involved, a flexible, automated opt-out process can ensure that no consumer request is overlooked. Implementing technology to track and process these requests quickly is key to maintaining a streamlined, efficient operation.
  • Technology and Innovation: The digital age demands businesses use advanced technology to manage consumer interactions effectively. Automating the opt-out process ensures that all channels are updated in real time, avoiding mistakes and minimizing delays.
  • Consumer Trust: Consumers are more likely to engage with a company that respects their preferences and responds to opt-out requests quickly. Offering various opt-out methods and honoring them promptly can significantly improve customer experience.

TrueAccord Leads the Way in Opt-Out Efficacy and Efficiency with RPA Bots

At TrueAccord, we understand that consumer opt-out preferences must be managed with the utmost care. Using Robotic Process Automation (RPA) and artificial intelligence to automate back-office operations helps ensure compliance, improved customer experience, and a more cost-effective way to engage and collect.

  • Automated Opt-Out Recognition: While many companies recognize the word “STOP” as an opt-out request, TrueAccord’s system goes further. We use AI tools to scan incoming messages for not just “STOP,” but also for variations like “revoke,” “quit,” “cancel,” and even unusual or colorful expressions of dissatisfaction. If a message contains any of these keywords, the bot automatically processes the opt-out request by unsubscribing the consumer from the SMS channel.
  • Real-Time Compliance: Our system, powered by HeartBeat—TrueAccord’s patented machine learning engine—ensures that consumer preferences are respected. If a consumer opts out of one communication channel, we ensure that all future communications to that particular channel are paused, preventing any further contact that could lead to complaints or violations.
  • RPA Efficiency: Thanks to our RPA bots, tasks that once took hours or even days for human employees to manage are now completed in a matter of minutes. For example, our bots can process large volumes of responses, automatically unsubscribing consumers or flagging accounts for further review, reducing the time needed to comply with opt-out requests and ensuring that no request goes unnoticed.
  • Advanced Reporting and Monitoring: We don’t just automate the opt-out process—we also track and report on all consumer interactions. This allows us to maintain a detailed audit trail for compliance purposes, ensuring that all opt-out requests are processed promptly and accurately.

TrueAccord is committed to staying ahead of regulatory changes and technological advancements. As the FCC’s rules continue to evolve, we are constantly refining our processes to ensure we are not only compliant but also providing an exceptional consumer experience.

What Does This Fish Mean to You? Navigating Opt-Outs Through MMS

When it comes to consumers opting out of receiving TrueAccord communications through MMS, consumers can truly get creative: photos, memes, emojis, songs, selfies, and more. While text-based responses can be scanned and filtered, MMS is trickier.

For MMS, the reviews need that human set of eyes. Why? Let’s use this actual consumer reply to a text message from TrueAccord that included the standard “STOP to opt-out” language:

Screenshot 2025 04 01 at 10.38.47 AM

What does this fish mean to you? Specifically in the context of debt collection communications with a business, what action do you think the consumer is trying to invoke?

While there are plenty of words and phrases you can program into a filter or scanner, this fish is not as easy to decipher the meaning. Automation takes the burden of basic reviewing off the shoulders of agents and allows bandwidth for examining the more creative responses and handling them appropriately.

So if your debt collection partner is only using a rudimentary scanner for opt-outs, it’s likely that unique opt-out requests are falling through the cracks—and that’s if that partner even has an automated process to manage replies and responses in the first place.

For businesses looking for a debt collection partner, this is a differentiator between choosing TrueAccord versus a competitor—our system is built on code-based compliance which allows us to communicate with consumers at a scale that’s unimaginable from traditional call-and-collect or DIY collection programs. The more traditional operations that do not have these automated processes are also unable to keep up with the variety of replies consumers send to opt-out. Even if they have automation to send out mass volumes of emails or text messages, do they have automation to handle the volume of replies within regulatory timelines? Do they actually offer efficiency and scalability—or are they opening you up new compliance risks around opt-outs?

Opt-In to a More Efficient and Effective Debt Collection and Consumer Communication Process

In the ever-evolving landscape of consumer protection and compliance, businesses must be proactive in managing opt-out requests. It’s no longer enough to rely on a single keyword like “STOP.” As consumer expectations and regulatory requirements evolve, so too must the tools and technologies used to manage opt-outs. TrueAccord’s cutting-edge automation and machine learning technology leads the way in ensuring that consumer preferences are respected, compliance is maintained, and operations remain efficient.

By embracing a more comprehensive, technology-driven approach to managing opt-outs, businesses can build trust with their customers, reduce legal risks, and stay ahead of the regulatory curve.

Ready to opt-in to a more efficient and effective debt collection and consumer communication process? Schedule a consultation today»»

Using Letters in Omnichannel Debt Collection—Keeping Up with Compliance

By on February 18th, 2025 in Industry Insights, Compliance, Customer Experience, Machine Learning, Product and Technology, User Experience
Using Letters in Omnichannel Debt Collection—Keeping Up with Compliance 1 scaled

Direct mail is the old-school method for reaching consumers regarding their debt, but over time several factors have reduced the effectiveness of letters in collection communications—consumer preference and cost being the most prevalent. But specific state compliance regulations and other use cases prove that “snail mail” still has its place in the omnichannel mix.

When are Letters Necessary in Collection Communications?

While the cost of physically mailing letters may be a deterrent to snail mail, businesses benefit when direct mail is used to meet compliance requirements. We’ll go into more detail around regulations in the next section.

Another benefit of mailing letters is most apparent when the delinquent account does not have a valid email address or phone number on file. Letters ensure that these individuals still receive crucial notifications regarding their accounts, preventing any potential oversight, and provide essential information related to their debt in a clear and organized manner.

Additionally, the formality of letters can be necessary to help raise awareness of outstanding debt for consumers that may not be as trusting of digital communications and choose to ignore phone calls. This is especially true for those who may not be as computer savvy or familiar with online financial transactions.

And just like with all other communication channels in debt collection, consumer preference also plays a role but in an even greater way with traditional letters: if a consumer clearly states that they only want to be contacted through physical mail (either to them directly or to their legal representation), businesses and collectors must abide. These types of requests lead to the main use case for letters…

The Main Use Case for Snail Mail: Compliance

The primary use case for using the direct mail channel is for compliance. Several laws, regulations, and governing bodies—including the Fair Debt Collection Practices Act (FDCPA), Regulation F, Consumer Financial Protection Bureau (CFPB), among others—define how, when, and what needs to be included in consumer communications around debt collection, and letters were the original initial compliant consumer communication.

Yet the prevalence of digital has forced these regulations to evolve, and today there is no federal law requiring consent to communicate via email vs direct mail.

But there are some exceptions to this general rule:

  • Some states/jurisdictions require consent to communicate via email and text, which must be obtained through physical letters and documentation.
  • In some instances, consent to send legally required notices electronically must also be obtained through physical mail.
  • Some states require certain legally required notices to be mailed.

See Success and Real World Results with TrueAccord

Understanding the nuances of compliance and when communications fall under certain laws can be challenging without legal experts keeping a finger on the pulse of these evolving regulations—but TrueAccord ensures success with code-based compliance so all our engagement channels meet the requirements for each unique account’s circumstance and know when letters are the right choice for outreach.

While our omnichannel strategy is digital-first, we understand that digital isn’t always the best or most viable option to connect with some consumers. Knowing when, where, and why a letter might be the ideal choice for consumer communication helps TrueAccord and our clients remain compliant and cost-effective. Depending on a consumer’s location and contact information, a letter may be the best bet to garner engagement.

With advanced code-based compliance and scrubbing capabilities, TrueAccord’s omnichannel approach proves even snail mail can still be effective in collections.

Want to know more about how the omnichannel approach and how each channel influences the effectiveness of a business’s overall collection strategy? Download our new eBook, Omnichannel Communication in Debt Collection: An In-Depth Look at Advanced Engagement Strategy by Channel now»»

The TrueAccord Difference for a Better Self-Serve Consumer Experience

By on October 18th, 2024 in Customer Experience, Industry Insights, Machine Learning, Product and Technology, User Experience
The TrueAccord Difference for a Better Self Serve Consumer Experience scaled

While many financial service institutions can offer basic payment portals, these are often limited when it comes to collecting on delinquent accounts. TrueAccord delivers a robust difference.

Self-serve options should be a key part of any collections operation. In fact, research from McKinsey found that consumers who digitally self-serve resolve their debts at higher rates, are significantly more likely to pay in full, and report higher levels of customer satisfaction than consumers who pay via a collection call.

At TrueAccord, we provide more than a basic payment portal—the power of our self-serve solutions gives your business and your customers better control over the repayment process. TrueAccord’s self-serve portal delivers less friction for delinquent consumers ready to manage their debt, while your organization determines the extent of account details to display, what flexible payment options you’d like to provide, and more.

Let’s look at how TrueAccord provides a superior consumer experience and better bottom-line results for your business through our self-serve portal and solutions.

Why Offer Self-Serve Options on Top of Traditional Collection Methods?

Two of the most prominent use cases for deploying self-serve channels are consumer preference and compliance—and both are success stories for TrueAccord.

The numbers cannot be ignored: 98% of delinquent consumers serviced by TrueAccord resolve their debt without any human interaction, which in turn saves time, resources, and headcount. When asked why they pay bills online, three in 10 consumer survey respondents said they like the flexibility to pay whenever and wherever they want—a convenience traditional call-and-collect methods cannot extend to consumers due to FDCPA’s “Inconvenient Times” rule under Regulation F.

The “Inconvenient Times” rule prohibits calls to consumers before 8 a.m. or after 9 p.m. in the consumer’s local time zone, because calls made during those times are presumed inconvenient. But self-serve options put the power in the consumer’s hand 24/7. At TrueAccord, 29% of online payments are made outside of traditional FDCPA hours.

Self-Serve Success with Advanced Machine Learning and Omnichannel Engagement

Does your digital debt collection outreach strategy extend beyond email or SMS? A true omnichannel approach goes further to interweave self-serve options—and TrueAccord delivers.

Whether via email, text message, or even physical letters, there are several ways TrueAccord reaches consumers in debt collection and empower them to take charge of their repayment journey through the self-serve portal.

And even if the first engagement attempt is unsuccessful, HeartBeat—TrueAccord’s patented machine learning decision-engine—will adjust communication cadence, content, and even channel dynamically.

Studies show that 54% of consumers expect their financial provider to leverage the data they have about them to personalize their experience, so HeartBeat looks at individual account characteristics—like debt type, creditor, balance size, age of debt, etc.—and selects a message (written by experienced debt collection content creators) based on previous interactions with consumers that have similar characteristics. Thanks to our 35 million consumer interactions collected, HeartBeat drives both the optimal engagement and repayment rates while working within both our client’s guidelines and regulatory requirements.

Want to take an even deeper dive into the consumer experience-side of TrueAccord’s self-serve portal? Download our free eBook for more details and a visual walkthrough of the consumer experience when using our portal here»»

What Do TrueAccord Consumers Have to Say?

Don’t take our word for it—read testimonials and feedback from real consumers who have resolved their delinquent accounts through TrueAccord’s self-serve portal:

  • “This was a great experience for me. The portal was so easy to operate quickly and easily. Thank you.”
  • “Easiest to work with, never had to speak with a representative, was able to fully manage and pay off the account via their online portal.”
  • “I appreciated the zero harassment, easy portal interface. I have been stressed about this for a while, hardship came up, but you made it easy and less stressful to take care of.”
  • “Thank you for being patient and for having a portal that makes it easy to make the payment without filling out a bunch of stuff and having to make an account.”
  • “I appreciate you notifying me via email and having a great online payment portal. It made the process really easy.”

Ready to Get Started?

Empower consumers with a self-serve experience—and collect faster from happier people. Schedule a consultation and get set for a live demo of the TrueAccord self-serve portal»»

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Consumers Prefer Self-Serve Options for Debt Repayment—and Businesses Cannot Afford to Ignore Consumer Preferences

By on October 17th, 2024 in User Experience, Customer Experience, Machine Learning, Product and Technology
Consumers Prefer Self Serve Options for Debt Repayment—and Businesses Cannot Afford to Ignore Consumer Preferences 1 scaled

Self-service portals are an empowering way to get consumers back on track. In fact, research from McKinsey found that consumers who digitally self-serve resolve their debts at higher rates and are significantly more likely to pay in full. Just take into consideration that surveys have found that four in 10 have used an online portal supplied by a financial institution for bill pay, while only a quarter have paid by phone, mailing a check, or in person.

But along with helping your bottom line, consumers just prefer these kinds of self-serve methods for payments.

Let’s dive even deeper into consumer behavior and preferences when it comes to handling payments and account management via self-service—and why organizations cannot ignore the numbers.

Self-Serve Preferences by the Numbers

The numbers don’t lie—more consumers want and use self-serve online portals for bill pay:

  • 60% of consumers prefer self-service options
  • 54% of surveyed consumers have used an online portal supplied by a biller
  • 47% prefer self-serve portals because of the convenience and flexibility

And businesses cannot afford to ignore these preferences:

  • 81% of customers want more self-serve options
  • 14% of bill-payers who prioritize at least one bill over others identified the ease of making payments as a key factor in that decision-making process
  • According to one study performed by McKinsey, a bank saw a 15% increase of cured accounts after implementing a self-service option
  • 70% of customers expect a company’s website to include a self-service application

Despite this data, a 2023 Transunion report shows that 64% of collections agencies don’t have self-serve capabilities, and simply increasing customer calling won’t improve contact and recovery rates.

But don’t worry—TrueAccord’s self-serve portal has proven to be a win for both businesses and their customers, with 98% of delinquent consumers serviced by TrueAccord resolving their debt without any human interaction.

TrueAccord’s Machine Learning Engine Powers a Better, Compliant Self-Serve Experience

At TrueAccord, we know that every consumer’s delinquency situation is unique and so are their repayment and engagement preferences. So from our initial outreach, we tailor our consumer communications using our patented machine learning engine, HeartBeat, to determine the right message, right channel, and right time to engage.

HeartBeat uses a machine learning model that looks at account properties and chooses a communication (written by experienced debt collection content creators) based on previous interactions with consumers that have similar characteristics.

This is important since studies show that 53% of consumers expect their financial provider to leverage the data they have about them to personalize their experience. From messaging that resonates to flexible payment options within our self-serve portal, TrueAccord uses advanced machine learning to drive the optimal engagement and repayment rates while working within both our client’s guidelines and regulatory requirements.

Our self-serve portal meets collections compliance rules while also meeting a consumer preference at the same time. When asked why they pay bills online, three in 10 survey respondents said they like the flexibility to pay whenever and wherever they want—a convenience traditional call-and-collect methods cannot extend to consumers due to FDCPA’s “Inconvenient Times” rule under Regulation F. The “Inconvenient Times” rule prohibits calls to consumers before 8 a.m. or after 9 p.m. in the consumer’s local time zone, because calls made during those times are presumed inconvenient. But self-serve options put the power in the consumer’s hand 24/7. At TrueAccord, 29% of online payments are made outside of traditional FDCPA hours.

By following all compliance regulations and your business’s guidelines, our consumer outreach aims to drive the most engagement and commitment to repayment through the self-serve portal.

What Consumers Have to Say About TrueAccord’s Self-Serve Portal

We’ve looked at a lot of statistics supporting consumers’ preference for self-serve options, but let’s hear from real consumers that have used TrueAccord’s portal:

  • “This was a great experience for me. The portal was so easy to operate quickly and easily. Thank you.”
  • “Easiest to work with, never had to speak with a representative, was able to fully manage and pay off the account via their online portal.”

“I appreciated the zero harassment, easy portal interface. I have been stressed about this for a while, hardship came up, but you made it easy and less stressful to take care of.”

  • “Thank you for being patient and for having a portal that makes it easy to make the payment without filling out a bunch of stuff and having to make an account.”
  • “I appreciate you notifying me via email and having a great online payment portal. It made the process really easy.”

And put quite simply, our consumers “love this online payment portal.”

Want to take a peek at TrueAccord’s Self-Serve Portal? Download our free eBook for more details and a visual walkthrough of the consumer experience when using our portal here»»

Ready to see a demo in action and learn more about all of TrueAccord’s omnichannel, machine-learning powered collections? Schedule a consultation today»»

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