The collections rules for communicating with consumers keep changing. Take 2020:
- COVID-19 prohibitions. New rules on collections during the pandemic vary by state, making compliance complicated as companies get up to speed and adapt their communications processes.
- No more robocalls. The U.S. Supreme Court recently blocked the last group of allowable robo-callers–those seeking collections for government-backed loans, including mortgages, and back taxes.
- Digital v. phone. The Consumer Financial Protection Bureau is finally going to announce in October long-anticipated new rules that are expected to allow electronic delivery for compliance correspondence, such as validation letters, that currently must be mailed. But it’s also expected to limit weekly collections calls and how collectors handle recorded conversations.
Connecting with consumers
In some cases, these rule changes simply reflect better ways to connect with consumers these days. People spend a lot of time on their mobile phones, tablets and computers. They like the convenience of communicating and paying digitally. Even payment by smart voice assistant is becoming popular. A study by Transaction Network Services (TNS) found that 26% of consumers that own smart voice assistant devices have used them to make a payment.
At the same time, paper documents sent by regular or certified mail will remain a vital part of collections for the foreseeable future.
Adapting to changing rules and managing consumer expectations is a whole lot easier and more effective with the right omnichannel communications platform. Customer communications management technology lets companies quickly change documents and delivery channel preferences.
Of course, moving from print documents to email and text does take some planning and updating. Collections companies need to make a host of decisions about how they will present, send and promote the availability of digital communications. Do you:
- Include disclosures in the cover email or in the link to the document itself?
- Add digital opt-in offers on all print communications?
- Automate the capture, updating and management of delivery preferences?
CCM technology helps you execute all your communications programs quickly, easily, accurately, and securely. In addition, it enables:
- Simplified compliance. Present only state and federal disclosures and disclaimers that apply to each individual customer and quickly revise as needed to meet changing state and federal rules.
- Secure edelivery. Send various types of emails, including secure emails that require user authentication and manage consent for electronic delivery.
- Automated record retention. Set archive duration based on unique program requirements and easily update to meet legal requirements with archiving feature.
- Lower barriers to payment. Add text/SMS messaging, email and digital wallet payment reminders that include links to payment portals and numbers of call centers.
CCM delivers the flexibility to adapt to compliance changes and take advantage of all legal communication channels. As phone calls become less viable, CCM can change the dynamic between collectors and consumers, making it fast and easy to communicate and pay–boosting recoveries.
About the Author
Bryan joined Nordis Technologies in 2016 to manage and grow the company’s already-large vacation ownership client base. He also is responsible for business development and market expansion in the healthcare and financial services markets. Before joining Nordis, Bryan spent more than 21 years with Interval International, a leading global provider of vacation ownership services. Bryan graduated from Northwestern University with a bachelor of science in political science.
Bryan Ten Broek
Vice President Business Development & Marketing