Once a new year starts, collection agencies experience an influx of placements due to previous year’s overdue bills and the resulting consumer disputes that come with those bills. Though many collection agencies say they are not seeing the expected influx of disputes they thought they might with recent implementation of Reg F, agencies realize that the disputes are coming. The holidays and the newness of the Validation Notice may have slowed the process, but the disputes are coming. So, how should your company prepare to manage the onslaught? Through a combination of prevention, clarity and action.
Prevention
Avoid litigious debtors: It is a sad truth that of the hundreds of lawsuits filed against debt collectors, a vast number are filed by repeat filers. Using the Litigant Alert feature from WebRecon is one way to identify problematic consumers. A further preventative measure is to make sure search engine results show your organization as the first few results on Google and other search engines. Check your phone numbers to ensure attorneys are not using SEO as a tactic to bring complaints or lawsuits.
Clarity
The Consumer Financial Protection Bureau (CFPB) records that a common complaint from consumers is that collection notices were “too vague” or “not informative enough.” The biggest questions from consumers center on the fees and interest that are charged on top of the original unpaid debt. New York and California are examples of two states that are trying to pass legislation to require the itemization source on the Model Validation Notice (MVN). Regardless, providing as much information about the debt, consumer’s protections and rights, and consumer’s ability to exercise those rights will inevitably reduce consumer complaints.
Action
It takes a lot of patience when it comes to dealing with angry consumers. It’s important to remain professional and calm, address all questions and objections, and offer solutions to resolve present issues. That said, if consumers say they have an attorney representing them, end the call as amicably as possible then cease all collection efforts. Internally, have your team set up Google alerts any time the company name is used or mentioned online. Additionally. trademark your name so you can send a formal request to Google to prevent attorneys from using your numbers and/or names for their profit. Lastly, consider using apps to send alerts when consumers register complaints on the internet, which can help you identify if an attorney is using your phone numbers for baiting.
These are just a few of the ways companies can prepare for disputes from consumers regarding their debts. We are the experts in debt collection and all the strategies needed to succeed. Contact us today to start a conversation and see how we can help you.