News & Resources

Debt collectors embracing novel ways of procuring payments

Oct 17, 2011 Mike Garretson

In challenging economic times such as these, when consumer debt is high and prospects low, trying to siphon debt payments from already downtrodden consumers can be an arduous endeavor. Accordingly, debt collection agencies seek out any method they can to ease the process for consumers and indebted entities. For example, a number of agencies have been leveraging QR codes and mobile technology to allow consumers to scan statements for quick and easy payment. Another online tool called LightPay provides a platform for creditors and consumers to communicate - privately, publicly or anonymously - about outstanding debts and determine repayment options that work best for parties involved. "By encouraging the consumer to visit a creditor's web portal and providing an environment where the consumer feels 'safe,' the consumer is more likely to self-manage his/her debt if it can provide relief from collection activity," explains the blog Inside ARM. Debt collectors have also been facing mounting pressures from judicial bodies over collection practices, underscoring the need for firms to be fair and ethical in their strategies.