Debt collectors have a significant responsibility to play, and it’s no wonder. It’s hard enough knowing that you owe money, but being under the spotlight by debt-collection agencies can give you an edge over others. Besides, you must remember that systems have evolved, and there has been a push for modernizing debt collection during the digital agencies.
These shifts come with a few more options, mainly when contacting you. It’s more about making the process easier on commercial debt collection firms. Let’s take a look at things you need to know about the debt collection process.
Digital debt collection
Debt collection has been in the market since the 1970s. But, things have changed since then. But it has taken a while to modernize debt collection, especially during the digital age, because collectors are unsure of the rules.
The pandemic has led to changes in rules and regulations. Moreover, commercial debt collection agencies are now under the microscope, and a modern way of communicating has the go-ahead. The regulations of debt collection stand as follows,
- Hours of contact between 8 am and 9 pm
- Agents may not contact debtors at work
- Agents may not threaten or harass
- Agents may not tell third parties about the debt
- Debtors may notify agents in writing to stop calling
These rules are set in stone and may not change any time soon. What is changing is the way third party collection agencies communicate while bearing these regulations.
E-communication
Traditionally, debt collectors follow a basic system of making phone calls and sending letters. However, communications have modernized over the years, and new avenues have opened to contact consumers.
Phone calls are still a top choice, and debt collection emails and text messages are the best options here. Debt collectors can now connect with debtors via social media messaging platforms.
It equally turns out that consumers are much into managing accounts online, i.e., emails, text messages, and social media. Debt collectors did not use these platforms, as their use was unclear, and many consumers complained about harassment through these communications.
Phone calls
The latest rules enable one phone call a day for a week. Once you speak to a person, you may no longer call the individual for another seven days. Consumers may also ask you to stop calling. Besides, you must comply with it.
The calling cap applies to all the debtors, and those with much debt can expect more phone calls.
Voice messages
A commercial debt collection will leave limited content messages if the debtor does not answer the phone. Before the third party disclosure laws, voicemails were a minefield. However, with the limited content message guidelines, this allows as:
- The consumer’s name is not mentioned
- A business name given that does not say the caller
- A request to return the call
- Contact names of who to speak to
- A phone number to return the call
Emails and text messages
Emails and text messages are allowed but must only happen between 8 am and 9 pm as per the rules of the Act. Again, consumers have the option to verify their continued consent for this form of communication.
All electronic communications must include clear instructions to opt-out should the consumer wish. If the consumer chooses to opt out of a particular communication channel, you must honor this.
Final Wrap
The changes in modernizing debt collection during the digital age go a long way. It’s more about helping both collectors and consumers. Clarify the do’s and don’ts. If you’re looking for help, contact us today.
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