News & Resources

Try a little tenderness in debt collection

Oct 09, 2013 Phil Burgess

Although it might sound like a broken record, the fact remains that the most successful debt collection agencies are those that transcend simple regulatory compliance for exceptional brand stature. News stories released in the past several years, as well as reports from federal entities such as the Federal Trade Commission and the Consumer Financial Protection Bureau, have clearly indicated that illegal or simply rude actions will not pay off for collectors.

The sector has continued to take on a stigma that has become increasingly difficult to overcome, especially considering the rising awareness of consumers and businesses related to their rights. Agencies must focus on providing all clientele with the most progressive and exceptional customer service to ensure continuity in the coming years.

Break the cycle
CBS News recently reported that one Tulsa-based agency has received rave reviews from a variety of debtors - and not the bad kind - as clients explained how helpful the firm's employees have been throughout the collection process. This is a relatively rare news story, as most of the major media surrounding the industry has related back to scams, illegal activity or harassing communications.

Still, it represents the sheer power that such quality customer service comes with in the debt collection industry. According to the news provider, agents from the collection company spend time with each client working out long term strategies that will ensure both parties are on the same page, and that the repayment plan is comfortable and feasible.

The source explained that the head of the firm has taken an especially unique step in the right direction by hiring individuals who have strong experience with customer service in other industries. After training these professionals in regulatory compliance statutes, they tend to be more proficient at re-obtaining debts than those who do not focus on customer service.

Swim in the success
Collectors of all kinds, regardless of whether they are working at new or old firms, can enjoy the same success that the aforementioned firm has had by taking a similar approach. Of course, the most important component of operations remains adherence to federal and state statutes, as well as the efficient recovery of debts.

However, the incorporation of customer service training and unique methods of boosting client comfort and engagement levels will almost always lead to more preferable financial performances in the long run.