Technology moves at a fierce pace. It moves so quickly it’s hard to keep up. On the other side of the coin, technological advances can make life easier. For business, these advances can be both a blessing and a curse. With technological advances, it has become easier for third-party debt collection to be successful and use more effective tactics. However, there still is a downside.

The Benefits of Technology

With technology and debt collection, it is easier for the collection agencies to track down the debtor. For example, mobile technology is helpful in the area of debt collection. Most everyone has a mobile device these days, especially those in the business world. This makes it much easier to get in touch with people since everyone usually keeps their mobile phone close by.

Once the debt is in the process of being collected, technology can help here, too. By creating easy online payment methods, people can pay on past due accounts in seconds and with no stamps needed. Debts can also be set up for automatic/online payment.

Also, a good debt collection agency will have current technology to continually keep up with information changes. Whether a company changes location or contact information, a debt collection agency will have this on record and can stay current.

The Downsides of Advancing Technology

However, technology has a downside as well. With social media and more information available, people are more aware of scams and wary of any phone calls, even legitimate ones. When a debt collection agency calls a debtor, sometimes it’s hard to get through to them without a hang-up. Because people are warned so often of scammers, they often don’t answer unknown calls or else they disconnect immediately.

According to Inside Arm, it’s difficult for third-party debt collection services to get through because of some regulations with debt collection:

“Specifically, collectors must confirm they have the right person on the phone before they share any information regarding the reason for the call, lest they risk embarrassing the consumer by disclosing the existence of a debt to a third party, like a child, a roommate, or a guest.”

Advancing Technology in the Future

This same article discusses some more advancements on the horizon which may be beneficial to debt collection agencies. Voice recognition is one of these. This would allow agencies to verify identity through voice alone, and not have to ask the questions that tend to scare people off. Again, though, this may keep people from actually answering their phones.

It’s a tough call. Technology continues to provide benefits and helpful advances, but it also can make things more difficult.


Businesses need debt collection as a service when clients aren’t paying (and before). The best collection agencies will use a plan of action involving some of this technology. Rocket Receivables is an expert in the industry and uses a variety of techniques to collect money owed (request info). A debt collection agency can use the current and emerging technology to operate this aspect of your business more effectively.