Why Dial-Only Collection No Longer Works

If you are using a dial-only collections strategy, then the method you are using is becoming less effective to collect payment from today’s typical consumer.  There are several reasons for this, and they all boil down to one fact: today’s consumer uses technology in different ways and all of that technology allows for more advanced ways of ensuring privacy.  

Not only do over 20% of people not even have landlines, an increasing number of people are using their mobile phones as their only means of telephone communication.  Federal and state regulations governing cell phone use is presenting itself to be a major barrier from the collections industry point of view.  What’s more is that cell phones offer caller ID and call blocking, with some new apps that completely block any calls from even registering on the phone.  These privacy options play a significant role in hampering access to debtors for the purposes of discussing debt resolution.

Additionally, both the Fair Debt Collection Practices Act and the Telephone Consumer Protection Act have placed severe limitations on the use of automatic telephone dialing systems (or robocalling) and pre-recorded calls.  These restrictions have made it even more difficult for collection agencies to reach consumers by phone to discuss an outstanding debt.  

What this means for the collection industry is that new, multi-channeled ways of reaching consumers about their debt are necessary if successful negotiations are to be made.  Since technology is changing, the collections industry must change as well, and learn to use technological advances like online payment gateways allowing debtors 24/7 access to an account.  Giving debtors more ways to pay their debt, and alleviating the intrusion of phone calls, often has a greater impact on the actual repayment of that debt.  

In increasingly difficult economic times, more people are going to stop paying their debts.  It’s simply the harsh truth that the industry is facing.  However, adjusting debt collection practices to fit the needs and lifestyles of the consumers is a way to assure that debt collection takes place, rather than just a stream of unanswered, unreturned phone calls that wastes time and money. 

When are You Most Likely to Get Payment?

Having trouble collecting payment from debtors? Maybe you’re using the wrong approach if you are spending your working hours attempting to collect from people while they are at work.   Most surveys show that people are more inclined to pay their bills after working hours.  Jobs vary in shift, so the hours your debtors are more inclined to pay will vary.  It makes good sense to provide an online gateway that is available to them 24 hours a day, 7 days a week, in order to accommodate the most convenient payment window for your debtors, regardless of their work schedule. 

In a tough economy, businesses are going to have to start thinking outside of the box in order to compete, stay afloat, and succeed.  Much of this type of thinking involves looking for new ways to solve old problems – such as new ways to go about collecting money that is owed.  While there will always be customers who simply ignore their debt out of a lack of responsibility, the majority of your debtors are likely honest working people who have fallen upon hard times and have taken on more debt than they can handle. 

In this case, in allowing the convenience of paying at all hours, and in accommodating often hectic work schedules, you are helping your debtors get back on track by easing some of the stress and hassle for them.  Adding to their stress doesn’t get you anywhere and doesn’t help your debtor get any closer to being able to pay you the money they owe you.  Giving your customers a workable window in which to comfortably make payments on their debt or account will increase the likelihood that you will have happy and stress-free PAYING customers.