Who’s on First (and Who’s on Third) for Your Debt Collection?

By on September 1st, 2022 in Customer Experience, Industry Insights, Product and Technology, User Experience

What is your core business? It probably isn’t chasing down delinquent accounts—and it shouldn’t be. Attention, resources, and bandwidth should be dedicated to what drives revenue and pushes your company’s goals forward.

But delinquencies are a reality for any business that handles payments. And when a customer misses a payment on the due date, you shouldn’t let their delinquency slide for too long, otherwise before you know it, that delinquent account will eventually get charged off and considered a loss.

While charge offs aren’t completely unavoidable, ineffective recovery efforts on those defaulted, post-charge off accounts (typically handled by a third-party partner) are completely avoidable. Effective pre-charge off (also known as first-party) collection efforts are just as important as well. For today’s consumers, that means engaging with them in more innovative ways outside the traditional call-and-collect methods and moving into a more digital approach.

But without a consumer-centric strategy for both pre- and post-charge off accounts, digital outreach can stumble just as easily as an inexperienced call center rep on their first day—ineffective or even damaging to customer relations.

So what do effective strategies look like for first-party and for third-party debt collection? Let’s first take a look at the nuances to consider between first-party and third-party collections.

First-Party vs Third-Party Collections—What’s the Difference?

First-Party
First-party refers to using the creditor’s brand in customer communications. The focus is on remediation of newly delinquent accounts and getting the customer back on track. The communications address the part of the loan that is late, which is often not the whole amount, and refer the customers back to the creditor’s call center, payment portal, or online account system.

Third-Party
Third-party refers to outsourcing collections through a third-party partner on the entire balance of the account. At this point, many creditors believe the customer relationship has been lost—but this does not have to be the case with the right digital strategy!

First or Third—Customer Engagement is Key to a Homerun in Collections
For both first- and third-party collections, success hangs on reaching each customer with the right message, through the right channel at the right time. This can be no small feat for smaller in-house teams attempting to recoup pre-charge off debts. And how can you trust that your third-party partner is actually engaging with customers in the best way possible?

So Who’s on First and Who’s on Third for Your Debt Collection?

It may seem like a silly question: who is on top of your first-party, early delinquency collection communications? Many companies assume that they must handle pre-charge off collection efforts completely by themselves or by outsourcing with a first-party company, but there are communication alternatives such as TrueAccord’s Retain. Retain is the client-branded pre-charge off digital engagement product, directing customers back to you enabling your customers to choose the right time, place and channel to contact you. Improve your cash flow, reducing losses and allowing you to spend more time and energy on core business objectives.

Learn more about first-party communications, including the top 10 questions to evaluate your current strategy, in our new eBook the Buyer’s Guide to Digitally Engage Your Past-Due Customers»»

While third-party, post-charge off collections may feel more “out of sight, out of mind” than first-party since organizations outsource to third-party vendors, it’s still crucial to have a comprehensive digital communication strategy that aligns with individual business standards. TrueAccord goes above and beyond with Recover, our late-stage collection solution that proves digital-first delivers: 96% of consumers who resolve with Recover do so using only self-serve digital tools.

Learn how to evaluate your third-party collection partners, including the top 10 questions to ask vendors, in our new eBook the Buyer’s Guide to Effective Third-Party Collections»»

TrueAccord’s mission to help organizations recover more (from happier consumers) is comprehensive for both first-party, pre-charge off and third-party, post-charge off, whether using one or both intelligent digital-first solutions together.

What do the CFPB’s Updates to the Regulation F Electronic Communications FAQs Mean for Your Debt Collection Strategy?

By on August 16th, 2022 in Compliance, Industry Insights, User Experience

The Consumer Financial Protection Bureau (CFPB) quietly published on its website additional frequently asked questions (FAQs) on the Debt Collection Rule (i.e. Regulation F) relating to electronic communications and communicating during unusual or inconvenient times or places.

The FAQ answers multiple questions, ranging from “is a debt collector required to honor a consumer’s request to opt out of electronic communications if the request does not conform to the debt collector’s opt-out instructions?” to “does an automatically generated electronic communication (such as a payment confirmation) sent at a time the debt collector knows or should know is inconvenient to the consumer, which is sent in response to a consumer action (such as a payment), meet the limited exception for responding to consumer-initiated contact?”

While many of the responses to the FAQs can be found in the Official Interpretation section of Regulation F, there are some points worth highlighting:

  • A consumer is not required to use the debt collector’s preferred or stated opt-out method. This means, for example, an email opt-out can come from a non-email channel, an SMS opt-out can from a non-SMS channel, etc.
  • A consumer does not need to use specific terms contained in a debt collector’s opt-out instructions in order for their opt out to be effective. For example, if the instructions tell a consumer to reply with “stop” to opt-out, and the consumer replies with “quit” instead of “stop,” the debt collector must still honor that opt-out.
  • Email addresses and mobile telephone numbers are not necessarily associated with a “place.” This means that the prohibition on communicating or attempting to communicate at unusual or inconvenient places does not prohibit a debt collector from communicating or attempting to communicate with a consumer through email or mobile phone. However, if the debt collector knows, or should know, that the consumer is at an unusual or inconvenient place, then the prohibition still kicks in.

What should creditors look for in their debt collection partners?

Creditors should check to see if their debt collection agencies train their staff and design their processes so that they promptly and effectively identify and process opt-out requests. Since opt-out requests can come in various forms and fashions, debt collectors need dynamic procedures to capture any and all opt-outs. Debt collection agencies also need processes and technologies to help them implement controls for inconvenient time and place restrictions – which may be a little tricky when applied to email and mobile phone numbers.

What is TrueAccord’s take?

At TrueAccord, our goal is to make the debt collection experience friendly and easy for consumers. That is why we engage consumers on their preferred communication channels and make it easy to opt-out of electronic communications. We take a broad approach to honoring a consumer’s opt-out request no matter how we get it or what specific words they use.

While the new FAQs clarified that the Debt Collection Rule does not require debt collectors to communicate electronically with consumers, we pose this question back:

If a consumer reaches out to you electronically, why wouldn’t you want to communicate with them on the channel they prefer?

Start evolving your consumer engagement and communication strategy to meet your customers where they will be most receptive. Schedule a consultation to learn how TrueAccord can help you get started»

TrueAccord Rolls Out Web Chat in Time for Tax Season

By on March 23rd, 2022 in Company News, User Experience

TrueAccord is an intelligent, digital-first collection and recovery company that uses the industry’s only adaptive intelligence: a patented machine learning engine, powered by engagement data from over 16 million consumer journeys, that dynamically personalizes every facet of the consumer experience in real-time. Our team takes innovation seriously and works tirelessly to provide product and service features that deliver outstanding results for clients and customers. Here’s what’s new from TrueAccord.

Feature Update: Web Chat

Tax season is upon us and in the debt collection industry that means consumers have access to refunds. According to the National Retail Federation, of the 59% of consumers who are expecting a tax refund this year, 33% plan to spend their refund on paying down debt. For this reason, mid-February through May is considered the most productive time of the year for debt collection with many consumers receiving tax refund money and opting to use this extra cash to catch up on their finances. During tax season, it is important to manage the large volume of inbound requests while also maintaining the quality of customer interactions. 

As a digital-first company, TrueAccord invests heavily in strategic communication with consumers where and when they want it and doesn’t rely on a large call center operation. With an expected increase in inbound communications during tax season, the TrueAccord team determined that a digital-first live chat feature would align with customer contact preferences and enable better customer service during peak times.  

To solve for this, TrueAccord launched a custom web chat interface in advance of tax season, which is visible to customers as a chat “bubble” on the consumer-facing web pages. The solution offers myriad benefits to both customers and customer service agents including reducing call volume, improving agent capacity to handle multiple consumers, assisting in managing tax season volume and providing a consumer-friendly self-service option for most commonly asked questions.

The result?

We’ll monitor and analyze how the new web chat feature performs during this year’s tax season, but consumer surveys have shown that web chat is preferred by 41% of consumers over phone, email and social media support, so we anticipate high customer utilization. The expected outcomes of web chat implementation for tax season are:

  • Improved user experience by offering a preferred method of communication
  • Reduced in in-bound call volume 
  • Increased accounts closed rate
  • Managed tax season volume and 
  • Improved quality service levels across all operations communication channels with self service options for most commonly asked questions and inquiries now via web chat

Pitfalls on the Path to Digital Debt Collection

By on August 25th, 2020 in Industry Insights, Machine Learning, Product and Technology, User Experience

Banks are accelerating their adoption of new digital debt collection tools in anticipation of a “tidal wave of consumer debt issues” when government stimulus programs end and financial institutions stop offering forbearance and loan deferral options.

That’s the premise of a new article in American Banker highlighting a variety of technology-powered strategies banks are using to make debt resolution more automated, conversational, and empathetic. These approaches range from the convenient (more flexible self-service payment options) to the high-tech (robotic process automation). 

The American Banker article highlights promising signs of progress, particularly for industry players that have not always been known for digital adoption. KeyBank, for example, is in the process of rolling out a self-service digital payment portal designed to offer banking customers privacy and flexibility in resolving payments. And Alabama-based Regions is implementing digital messaging and intelligent interactive voice response (IVR).

At the same time, the article shines a light on the massive challenges facing any financial institution looking to implement intelligent digital debt collection at scale. Here are three common hurdles on the path to digital debt collection maturity – and why they matter:

Challenge #1: “One-size-fits-all” approaches

The challenge: In its overview of Regions, the article makes reference to a single conciliatory messaging tone used in all outreach to delinquent customers. 

Why it matters: Consumers differ vastly in their preferences and responsiveness to digital touchpoints. For example, one consumer might respond to a friendly message delivered by SMS, while another might respond best to a straightforward message delivered by email. As a result, a one-size fits all approach falls short of realizing the potential – in both performance uplift and customer experience – of true one-to-one personalization.  

The TrueAccord approach: HeartBeat, TrueAccord’s patented machine learning platform, mines through tens of millions of data points to optimize digital outreach on the individual level within a programmed set of compliance rules  – and continues learning the more data it analyzes.  

Challenge #2: Narrow, channel-specific use of machine learning 

The challenge: Another challenge that banks face in scaling their use of intelligence – including artificial intelligence (AI) – is the limited deployment of algorithms and optimization within a single kind of channel, such as in a call center environment. The article profiles a collections and business process outsourcing company, for example, that developed an AI-based virtual assistant that can handle most inbound phone calls.

Why it matters: Machine learning and artificial intelligence (AI) are powerful tools for restoring intimacy and relevance to customer relationships at scale. At their most useful, these tools should be deployed to personalize the customer’s full experience with a bank – not just the limited interaction on one channel. 

TrueAccord’s Approach: HeartBeat captures a continuous data feedback loop and optimizes for each customer touchpoint across a variety of digital channels, ensuring that each customer is being reached on the channel that is most relevant for her.  

Challenge #3: Building a truly comprehensive and flexible self-serve portal

The challenge: Constructing a digital portal that drives consumer adoption and usage takes major work. To truly match the convenience of online banking, digital tools must also allow consumers to adjust the length and installment amount on a payment plan, defer a payment, dispute all or a portion of their debt, apply for a hardship pause on their debt, and much more.

Why it matters: Research suggests that customers want to be able to self-serve. But doing so requires the full, flexible range of interaction options that would be available to them through traditional analog channels.

TrueAccord’s Approach: Through a robust and flexible digital platform, TrueAccord offers  a best-in-class self-serve experience: over 95% of users resolve their accounts without ever directly communicating with an agent. 

Ultimately, digital debt collection technologies offer banks the ability to build lasting relationships with their customers. As Kimberly Snipes, consumer chief information officer at KeyBank puts it in the American Banker article: “We want our customers to say, I hate that I had that situation, but I felt like my bank was working with me, not against me.”

Being aware of the challenges on the path to digital debt collection – and having a plan in place to address them proactively – can help financial institutions ensure that they’re set up for long-term success. 

About TrueAccord

TrueAccord is reinventing the relationship between creditors and lenders with a machine learning-driven, digital approach to debt collection. Our technology personalizes outreach to each customer across digital channels, continuously optimizing for performance while delivering a customer experience that builds long-term brand loyalty. Schedule a demo today to learn more. 

How can you help protect New Yorkers from aggressive collections?

By on March 17th, 2020 in User Experience

The collections industry continues to expand its digital footprint as growing consumer preference for digital channels combines with stricter regulations on call volume and call rates. Digital communications are standard today, but a key law passed in 2014 by the New York State Department of Financial Services of New York limits third-party collectors’ abilities to connect with consumers via email. 

We’ve seen the impact that digital communications can have on people’s lives, and you can help your fellow New Yorkers by sending the governor and your local official an email using the template at the end of this article!

The law (23 NYCRR 1)

Many existing collections laws are rooted in the Fair Debt Collection Practices Act (FDCPA) from 1977, long before emailing, text messaging, and direct voicemail technologies existed. In an age of growing prefernece for digital communication, New York’s 2015 law—§ 1.6 of 23 NYCRR 1—states that collectors may only contact consumers via email if they have:

  1. Voluntarily provided an electronic mail account to the debt collector which the consumer has affirmed is not an electronic mail account furnished or owned by the consumer’s employer; and
  2. Consented in writing to receive electronic mail correspondence from the debt collector in reference to a specific debt. A consumer’s electronic signature constitutes written consent under this section. 

Shortly after the law took effect the New York Department of Financial Services compiled a list of answers to frequently asked questions. You can review them here.

These laws were put in place to protect consumers from collectors excessively emailing them, but consumers are not required to opt-in for debt collectors trying to call them on the phone. In the State of Collections 2019 report published by TransUnion and Aite Group, one collections industry leader said that “right-party contact has fallen off a cliff,” and for many debt collectors, this means that their existing call-based strategy is suddenly becoming unviable. 

On the other hand, we’ve found that consumers provide their email address opting into electronic communications with their creditors. In fact, 95% of accounts placed with TrueAccord come with an email address provided with the placement file. Of those we reach with our digital-first strategy, 65% of them open at least one email, and 35% click at least one link to begin the process of repayment.

When debts go unpaid, some creditors and collectors turn to legal action, and New York is suffering a resurgence of lawsuits since the passage of the 2015 debt collection law. In fact, 2017 saw a 61% increase in debt collection suits according to the New York State Unified Court System. In other states across the country, TrueAccord has seen dramatic growth in consumer debt repayment using email and other digital channels as the primary mode of communication. 

At TrueAccord up to 96% of accounts are resolved without speaking to an agent and nearly one-third of users prefer to manage their accounts outside of the “presumptively convenient” hours (8 am to 9 pm) legally outlined by the Fair Debt Collection Practices Act.

Consumers understand the ease of this digital management system and regularly share their positive experiences with a digital-oriented collection strategy. Here are a few:

  1. I liked that the email system was used rather than phone calls. I found it easy to use, and it helped me to gather information, figure out a plan, and get the bill paid. It was a small balance, but during this time, it seemed bigger to me. Thank you for your service.
  2. This was the best way for me to take care of my outstanding debts since I’m always on the road. Thank you for taking your time with me and not blowing up my phone!
  3. TrueAccord has been friendly and helpful, and your systems are always up and running for me to use. You should be proud!

The power of digital communication

Digital channels give people the power to access and manage their debts on their own time without having to work directly with call-center agents. Moreover, it provides greater consumer protection by providing a paper trail of debt communications, unlike aggressive phone calls that consumers most likely wouldn’t be able to record. The more hassle-free options that folks have to pay, the more likely they are to get out of debt and avoid aggressive call-and-collect agencies.

We want to encourage New Yorkers to make their preferences for easily accessible digital channels to be heard. Pay off your debts on your time, not on an emotionally charged phone call or in a courtroom. 

Reach out to Governor Cuomo by clicking here with the template below and make your voice heard. Once you’ve sent your email, share this information using #CollectWithoutCalls and let the governor’s office know that digital is easier for everyone!

Email template

The following text may be used as a template for reaching Governor Cuomo or other elected officials in your state. Please replace any content in the parentheses with your own information.

Subject: RE: 23 NYCRR 1

Dear Governor Cuomo,

My name is (your first and last name) and I am a (family member/service provider/advocate/community member) who resides in your district.

I feel that 23 NYCRR 1 concerning debt collection by third-party debt collectors and debt buyers places an undue burden on consumers in debt. It limits the ease and efficacy of digital communications and gives priority to intrusive and aggressive call-and-collect agencies. I prefer to use email and the internet to manage my own finances, and permitting 3rd-party collectors to email me directly (if / when) I am in debt gives me the ability to manage my accounts on my own time rather than at the collector’s discretion.

Please read here for more information about consumer preferences and see the movement on social media. #CollectWithoutCalls

Sincerely,

(Your name)

(Your city)

Why customer feedback is so important for your small business

By on January 30th, 2020 in User Experience

Everyone knows that customers are the backbone of a business; if people don’t use your service or buy your product then you won’t have a business for very long. In order to solve this problem, companies often work to bring in as many new customers as possible, but you can’t forget to nurture relationships with consumers that you’ve worked with in the past. 

According to Adobe, 40% of eCommerce revenue comes from returning customers which make up only 8% of total visitors! That number alone should inspire you to get out and talk to your old customers and figure out what they think, but there are quite a few more reasons you should cherish customer feedback and use it to strengthen your company!

Building brand promoters

The omnipresence of social media means that consumers that are excited about your company will shout from the digital rooftops to endorse you. Unfortunately, the power of social sharing also means that the opposite is true: if a person has a particularly negative experience with your brand, they will spread the word around fairly quickly. 

Properly managing customer feedback can dramatically improve your brand’s reliability. A Net Promoter Score measures customer’s satisfaction with a business by asking: “how likely are you to recommend this (product/service) to a friend?” Customers that rate your business at a 9 or a 10 are considered promoters and are your best friend when it comes to spreading the word about your brand. 

Maintaining a high NPS score is challenging, but by focusing some efforts on gathering and listening to customer feedback, you can gradually build effective, organic branding that sets you apart from your competition!

If maintaining customer relationships is so important, you may be hesitant to try and collect on debts for fear of negative feedback. But digital debt collection solutions can support your brand and your bottom line!

Incorporating feedback and iterating

Not every review will revolutionize your business. If you take every negative review to heart, you might start to feel a bit down on yourself, but by analyzing customer feedback in aggregate, you’ll start to see patterns emerge!

These patterns won’t appear overnight, and even some patterns may not give you the direction you’re looking for (it is still your business after all). That said, if you have dozens of customers asking for a new feature or piece of content, imagine how many more customers want the same thing that aren’t asking!

By listening to customer feedback and building new tools that your customers are looking for, you can demonstrate that you listen to them and further improve retention. Plus, incorporating these changes into your customer lifecycle can pay big dividends! 

Promoters will continue to support your brand, bring in new customers, and in the long run, they will continue to spend more as your brand relationship improves. A survey by Bain & Company shows that customers actually spend more in months 31-36 of their relationship with a brand than they do in the first six months.

Creating a self-sustaining system

Feedback helps your business to grow and meet the ever-expanding needs of your market. If you don’t listen to your customers and build in a vacuum, you may soon realize that you were not solving the root of a problem. This isn’t to say that every customer suggestion or idea is the right one for your business, but if you take the time to listen to your customers you’ll build their trust and might just find the next right step. 

5 tips for recognizing debt collection phishing scams

By on January 29th, 2020 in User Experience

When communicating with debt collectors it’s important to ensure they are legitimate before making a payment. Scammers posing as debt collectors will pressure you aggressively, use threatening language, and will not provide any documentation to verify the debt.. When a scammer is attempting to collect a fake debt using an email it’s called a phishing scam.

The vague nature of scammer scare tactics combined with the sense of urgency in their communications make for a worrisome case, but if you keep a level head and follow these quick tips, you can protect yourself from phishing scams.

1. Verify the sender’s email address

Scammers will often make themselves appear legitimate by operating under a company or other authority figure’s name, but they cannot replicate a sender’s address. For example, if you receive a collections communication from TrueAccord, it will be from one of our company domains meaning that the email address (after the @ symbol) will either read “trueaccord.com” or a related address.

Even if you are anticipating communications from a collector (or anyone else for that matter), take a second to review the “From” address confirm that they are who they say they are. And in the case of collections, if they seem suspicious or don’t have a company domain, don’t respond to the email or click on any links.

2. Validate but do not click on links

Debt collection phishing scams are designed to collect private information—like your credit card number or bank account and routing numbers—by tricking you into providing that data. Some of them are even more malicious and will try to get you to download malware directly onto your computer.

Any links provided in the body of the email could redirect you to fake sign-in pages that will share your login credentials with the scammer, payment portals designed to capture account numbers, or even prompt you to download malware that could jeopardize the security of your entire device.

In order to check that the links in the email are legitimate, you can hover your mouse cursor over the link to see a link preview, likely at the bottom of your screen with the full URL. Make sure that you do not click when previewing the link, especially if you spotted a suspicious email address.

By hovering your mouse cursor over the link without clicking, you can make sure that the link address information matches the information in the email explaining where the link will direct you.

3. Investigate the company

If a collector’s information seems accurate, but you don’t recognize the debt the most surefire way to dissuade a phishing scam is to probe more deeply. Look up the debt collection company online see if the company is registered with the Better Business Bureau, conduct a Certified Business Search through RMAI or and email the company’s support team to confirm they sent the message.

Like we mentioned above: a scammer’s best friend is an unaware consumer.

If the content of the email is legitimate, they will also have a way for you to validate your debt before you pay them a penny. Call, write, or email  the debt collection company directly and request additional documentation Scammers won’t offer additional details because they don’t have it—a company that collects real debt will. 

4. Take your time to process the content

Scammers know that they don’t have much time to get the information they want. Once a recipient of a phishing email can process the details and recognizes that they don’t add up, the scam is a bust. This is why scammers posing as debt collectors rely on aggressive, manipulative, and urgent language. They may threaten legal action or other types of harm and will stop at nothing to make you pay as soon as possible.

Real debt collectors will not resort to these tactics, and many of the actions that these scammers threaten are actually against the law. Don’t let explicit language and threats pressure you into paying; while being in debt has obvious downsides, fake debt does not. By remaining patient and seeing through their smoke and mirrors, you can report the email as a phishing attempt and safely move on with your day.

5. Check for spelling and grammar errors

Phony debt collectors are hoping to catch you off guard. Their phishing emails are designed to look professional on the surface, but with a careful eye, they can easily be picked apart. Scammers target distracted, uninformed, and unaware consumers which is why their messages are often hastily thrown together. 

This means that phishing emails are much more likely to have typos, spelling errors, and issues with proper grammar. Read the message carefully and remain suspect if a message doesn’t make sense or look like they were thrown through a quick Google translate.

Stay informed and stay safe

It’s easy to feel overwhelmed by debt, and mounting debts from multiple sources can make it feel like you’re in a spiral. Scammers that send phishing emails prey on vulnerable consumers and take advantage of those financial fears, but keep these tips in mind and protect your financial well being. 

How do you effectively contact consumers in debt?

By on January 14th, 2020 in User Experience

According to the State of Collection 2019 report published by TransUnion and the Aite Group, “the challenge at the top of thought leaders’ minds [is] the increasing difficulty of connecting with consumers in a world where robocalls and scams run rampant.”

Consumers today are less and less likely to answer a call from a phone number that they do not recognize (only about 47% of calls are answered if the number isn’t saved), and the industry has to adjust if it wants to keep its head above water. 

One industry leader included in the survey said that “right-party contact has fallen off a cliff,” and for many debt collectors, the future feels bleak. In fact, three-quarters of those surveyed by TransUnion believe that upcoming regulatory changes from the CFPB will be difficult for them to implement into their business. 

This can all feel like a death knell for collections and recovery, but there is hope! Industry thought leaders believe that new communication channels and methods hold the future for the industry, and companies that are beginning the adoption process have already seen promising results!

A collection revolution

To get ahead of the curve, collection firms “are trying to understand people better and get the right data,” reports a third-party collections leader. Revolutions begin when the people rise up, or in this case, when they stop picking up. Looking at customer communication preferences, the world has largely gone digital, but “few [collections industry] respondents report their initial contact is attempted via email (3%).” 

So what are the new channels driving collections forward? How do you communicate with consumers more effectively as the age of call and collect fades? The importance of digital forms of communication can’t be overstated. 61% of agencies surveyed are already using email to communicate in some form with another 22% looking to add it to their strategy in the next two years. SMS & text messaging only has a 16% adoption rate with another 53% interested in further expanding. 

While there is power in alternative forms of communication, at the end of the day whether you’re using email, text, direct drop voicemails, or messages tucked inside candy wrappers to communicate with customers, the tool is only as effective as its ability to reach the consumer at the right place and the right time.

Moving into a digital future

With the start of a new decade, it makes more sense than ever before to shift toward a digital collection strategy to properly contact consumers in debt. One of the most difficult hurdles of integrating a digital approach for collections isn’t simply starting to send emails or text messages, it is integrating these digital channels at scale for hundreds to thousands of consumers.

This means that the solution to effectively contacting consumers as collections continues to evolve comes from a combination of understanding performance data, navigating the complexities of email deliverability, and learning to recognize and adapt to consumer preferences.

It’s no wonder that so many companies feel unprepared for the coming changes at a systemic level. Getting started and preparing for change with the right collector today can mean your collections strategy continues to grow for years to come.

Ready to go digital? Let our team know!

How TrueAccord Creates High Performing Compliant Content

By on July 31st, 2018 in Compliance, Product and Technology, User Experience
TrueAccord Blog

In debt collection, the language one uses in customer communications makes a big difference on liquidation rates. At TrueAccord, compliant content is the lifeline of our system. We continuously create, test and revise our content to engage consumers more personably—which drives better results for our clients.

Our Goal: Create a Better Customer Experience

Communication styles in the debt collection industry are typically stiff and unapproachable. Most of the time, it sounds like “legalese,” which can be off-putting, if not intimidating, to many customers. TrueAccord has a digital-first strategy to debt collection, primarily with emails, supplemented by SMS and phone calls to effectively engage with our customers. We strive to make our content informative, actionable, and compassionate.

Our mission is to transform the debt collection industry by helping people regain their financial health. Thus, our content is written to reflect that. It’s not accusatory or condescending, but respectful and empowering. We focus on finding solutions and helping people by presenting options on how to resolve their debt.

How We Experiment with Content —and Continually Improve It

Our proprietary content management system (CMS) was designed to help us craft and edit content based on massive amounts of dynamic data. We track everything from the customer’s balance, creditor, where they are in the debt lifecycle, if they’re in a payment plan, and how long we’ve been communicating with them to craft customized emails.

We constantly run experiments to generate the right content for each person. We try new subject lines to see if we can get more people to open emails. We write different calls to action on our buttons to see what drives better engagement. We also consider how far a consumer has to scroll down in an email or a landing page to get to the call-to-action button. If something’s not working well, we try something else. And our machine-learning engine—which continuously learns from our experiences—helps us customize specific and customer follow-ups that resonate. All of these small experiments add up to get us very high open and click rates from customers.

How We Keep Content Compliant

The debt collection industry is heavily regulated and is inherently protective of consumers, as it should be. We always look at communications content through a customer-focused and thorough compliance lens.

Our system provides code-driven compliance, appending the appropriate disclosures and text to automatically comply with whatever is necessary for each user, such as debts unreported out of statute or specific state disclosures. Our compliance rules dictate the content parameters for each customer, making it easier for our content writers to focus on writing compelling content. And yet, because there is wide variation in our writing styles, syntax and payment options, our content is still engaging.

Our legal team gives our content a final review, and we get very granular to ensure the message is clear for every type of customer. We look at the actual message, the email layout and design (including button placement) and even the size of the font for our disclosures. We write content that engages customers but also clearly lays out the customer’s rights and responsibilities.

This process is highly collaborative. Our content and legal teams work in concert to continuously adapt new scenarios to see how different options might come across. Our communications library constantly evolves as we keep on improving our customer engagement.

Think About What You Can Say

Most of the industry is focused on what you can’t say, but they’re not thinking about what you can say. That’s why we spend so much time perfecting our content and why we end up with such great response rates and overall results.

TrueAccord’s 2018 Customer Survey: Net Promoter Score and Digital Trends

By on February 27th, 2018 in Company News, Product and Technology, User Experience
TrueAccord Blog

 

We just posted our 2018 Customer Survey and the results are incredibly interesting.

Consumers in debt are definitely feeling more like TrueAccord customers, giving us a Net Promoter Score of 40, a new record for us and for the industry. We have also uncovered several interesting trends in customer preferences – not new, but definitely eye opening.

Click here to download the infographic summarizing our findings.