The collections space is no stranger to change and recently these changes are reforming this industry into a unrecognizable landscape for many collectors and business owners.
Choosing your local agency based on a referral used to be a safe bet, but in today’s climate you could run into issues sooner than you think.
The regulatory technology and compliance shifts that are taking place are forcing agencies to do more with less while implementing further safeguards for non-paying consumers. This is great news for non-payers, but not necessarily great news for your business.
So what does this shift mean for your receivables?
In short, the agency that you have been with for years could be great at collecting but they could be refusing to abide by the new laws.
These regulations impact small and large agencies alike, therefore everyone is scrambling to make adjustments.
With the number of CFPB crackdowns on collectors on the rise this is the time to make sure your business is protected. The only way to know is to do the due diligence.
Here are a few quick debt recovery due diligence tips to get started on your own:
•Learn from your customer complaints and ask about the tactics used to reach your client. Contact us at 844.234.6324 if you have questions.
•Ask your agency about the safeguards they have in place to protect your confidential data.
•Track the agencies recovery rate percentages from their reporting. If you are not receiving monthly breakdowns from your agency or if your recovery rate is declining this a red flag.
Recoverity offers an independent agency background check and a performance analysis to our users.
•Confidential. (Non-disclosure available)