A recent article on creditcards.com highlights the growth in virtual debt collection platforms, which are being well received by credit card users. Some collection agencies and first-party creditors have found that virtual or online collection systems have improved repayment by delivering a more comfortable environment.
“Some people don’t want to have to talk to another person and explain the circumstances,” said David Yohe, marketing director at BillingTree, a payment processor that tracks collection industry trends. “Shame is probably too strong a word — maybe there is slight embarrassment.”
Online systems can also make it easier for creditors to comply with industry regulations such as the Fair Debt Collection Practices Act. Live conversations are often the riskiest aspect of a collections operation from a compliance standpoint. In contrast, automated systems can be programmed to deliver consistent, compliant messaging to consumers.
Mercator Advisory Group recently reviewed credit card debt collection platforms, including virtual collection agents in a report titled, “Credit Card Collection Platforms: Compliance Takes Center Stage.”
Overview by Michael Misasi, Senior Analyst, Credit Advisory Services
To read the full story, go to Credit Cards.com.