Why Debt Collection Is Such an Issue

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With restrictions to movement and ready access to essential services limited, both consumers and creditors have been dealing with issues in the wake of COVID-19. According to the Institute of International Finance, since 2020, the pandemic has added in excess of $19.5 trillion to Global Debt. Many businesses have struggled with debt collection and had to negotiate outstanding dues with customers who were dealing with financial issues.

Organizations looking laos telegram to collect on outstanding debts must also negotiate a virtual minefield of regulations and compliance issues. Operators in industries like healthcare, for example, must comply with the stringent rules of the Health Insurance Portability and Accountability Act (HIPAA) governing the handling of Protected Health Information (PHI). Organizations dealing with online and credit card payments must adhere to the requirements of the Payment Card Industry Data Security Standards (PCIDSS) for monitoring, recording, transmitting, and storing calls containing personal financial data.

If your call center or contact center violates compliance laws, the consequences can be disastrous. As a case in point, since 2012: the Consumer Financial Protection Bureau (CFPB) has hit non-compliant operators with $1.7 billion in penalties. Since that time too, the CFPB reports that debt collection has been the second-most complained about issue in the financial industry. Debtors routinely complain about organizations attempting to collect on invalid debts, a lack of information about debt validity, and harassment on the phone.

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Despite these obstacles however, organizations that implement a good debt collection strategy not only boost revenue but also ensure long-term stability and growth. They can accomplish this by using an efficient call center solution that increases service agent productivity, maintains financial stability — and incorporates the following essential tools.

An Ominchannel Selection of Communication Options
Although voice calls are still the preferred method of contact for customers, SMS, self-service, web/live chat, email, social media, and messaging apps all play a role in customer interactions with organizations and brands. This also applies to debt collection, and the follow up after initial contact with the debtor.

With a contact center solution that provides omnichannel communication options, you can easily respond to the individual requirements of each customer, and interact with them via the method they prefer. Omnichannel communication can also help give you a clear oversight of all phone and digital channels, enabling you to seamlessly communicate with your clients, while tailoring your debt collection approach to their personal circumstances.