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New technological resources for debt collectors

Mar 17, 2015 Phil Burgess

New technological resources for debt collectors

Debt collection tactics are becoming more high tech - some even have the ability to remotely repossess items bought on credit. These resources help professionals contact debtors and better communicate with them to get back the money owed.

The importance of professionals in the field

If organizations aren't paid back by those who owe them money, they're going to have to reaise their prices, which affects the greater public. Governor Nikki Haley of South Carolina asked collection agencies to step up to the plate for this very reason, according to The Associated Press.

"[Public debt] is a huge amount. For every dime not collected, [the public] has to pick up the shortfall because people aren't paying what they truly owe," local state Representative Bill Herbkersman, a Ways and Means subcommittee chairman, told The Associated Press.

Debt collectors are often wrongly seen as the bad guys, as they help balance the economy by returning the owed money to organizations. This is a challenge, which means these professionals are always looking for more efficient ways to contact debtors and get the money back.

New technological resources for debt collectors
Bob Sullivan, author and former writer for MSNBC, wrote a blog post on his personal site that discussed the new technologies available for debt collectors, including remote repossession electronics. It can disable a borrower's car with "ignition interrupt devices." Professionals can also remotely wipe or disable computers as well, according to Sullivan's post. However, agencies must look at the legalities and regulations that apply before pursuing these options.

Big data has also been a huge contributing factor in finding better strategies for interacting with debtors. It helps debt collectors determine the best times to contact consumers and discuss repayment options. Customers can feel more comfortable when debtors have this information and other, as they may be contacted at a more convenient time of day and become more informed about the money they owe. Resources such as big data might help professionals discover where debtors have gone.

These technology options are guarded with regulations so debt collectors cannot use them unfairly or unethically. According to the source, however, many legalities should be updated more frequently to suit this technological age. Text messages and new ways of communication are not regarded in various pieces of debt collecting legislation, which can create gray areas for both consumers and professionals.

When debt collectors have the ability to better communicate and work with the public, the economy and businesses benefit. Professionals just have to be sure to use these resources in an ethical and appropriate way when interacting with consumers.