Does your Mom and Pop debt collection firm have the right tools for the job?
In the debt collection world, size does matter. There are a plethora of Mom and Pop bill collector firms in the market today, plus a few behemoths, and a smattering of mid-size firms. As technology has revolutionized debt collection, these small and sometimes mid-sized firms have struggled with the people, processes, and technology that has streamlined workflows and improved the client bottom line.
In the old days, we tended to hire local businesses that we knew. But today’s global digital platforms have opened up the world to the business owner seeking to hire a bill collector. As the regulations governing debt collection have grown more complex, larger firms in this industry have invested in serious technology architectures that keep client data secure and streamline staff efficiencies.
Unfortunately, the same cannot typically be said for the local debt collection agency next door.
This post explores how debt recovery companies use the latest digital tools that allow them to do their work remotely. Why are larger bill collectors better than Mom and Pop shops? You don’t need a nearby debt collector when the Internet brings these agencies to your doorstep.
Finding the Right Size Bill Collector
Not just anyone can pick up the phone and track down your money. That’s because debt collection is one of the most regulated industries in the country. We operate under a patchwork quilt of local, state, and federal regulations that govern, literally, every call we make, every email or text we send, data security, and much more. Within the big picture of these regulations, lies an industry-specific rule, such as HIPAA compliance in healthcare, that debt collection agency teams must comply with.
Given the complexities of these regulations, is a small debt collection firm really suitable for your company? Be careful with your answer, because if you choose wrong, there are regulators that are standing by to slap your company with a fine. Yes, that’s right – you are culpable for the work your chosen debt collection agency conducts. If they fail to follow the rules, it’s you that will be paying the price.
Technology and Debt Collection
For the past decade, new technology has expanded the capabilities of the debt collection industries. The most recent evolution has been in data analytics, where dynamic scoring can drive efficiency and faster cash flow for clients.
Debt collection firms must adapt to reaching clients where they live.
Debt collection agencies that fail to use new technology have fallen behind the efficiency trend. Too, smaller shops are less likely to have adapted to mobile technologies that really enable bill collector firms to track debtors to where they “live” today. Smaller debt collection firms are risky, both in terms of compliance, but also because they simply can’t afford the latest and best tools to help them keep pace with today’s digital and mobile workforce.
If you’d like to know more about how Rocket Receivables can meet all of your collection needs, click here to request info.