Debt collection agencies are a vital part of the credit lifecycle. They help your operations adapt to supporting customers in specific situations, giving you skills and access to talent that help you scale flexibly, while resolving more debt. As a result, you can maintain a humanized collections experience even in areas you’re not specialized in.
A key to providing these customers with the best care is to assign the right agency for them. This should be based on real data that determines whether an agency is the right choice for you and your customers. In this article, we discuss the role a configurable platform plays in making the right choice.
The importance of finding the right debt collection agency
The use of debt collection agencies are invaluable for both you and your customers during the collection process. Matching the right debt collection agency to the right customer is vital to this partnership working well. The last thing you want is for the agency to reach 90-days without a collection and the account to become a secondary or tertiary placement without a resolution. Remember, because of vicarious liability, you’re the one responsible for your customer not progressing towards financial stability. In light of this, finding the right agency for the right customer is vital.
Balancing risk and performance of debt collection agencies
When choosing a debt collection agency, you need to be able to determine their performance against the level of risk tied to the collection. You need to be aware of factors such as how much they collect on average, and how much they collect in the first, second and third month after the placement. This is because one agency may collect more over time rather than initially based on how they operate, and you need to pick the one that suits your customers.
An additional part of choosing debt collection agencies is the risk tied to their operations and the reconciliation for possible complications. Because of the sheer amount of data involved in these processes, it is easy for discrepancies to appear. You need to be confident that agencies can adapt to these discrepancies and provide sufficient reconciliation so that your customers get the support they need.
Mitigating risk with a configurable platform
There is a lot of analytical and manual work involved with agency placement. You have to balance risk and ensure the best possible service for your customers to reach financial stability. This usually takes a significant amount of time and effort from your team, which is valuable time taken away from direct customer service.
A configurable and dedicated collections platform can help you in finding the perfect debt collection agencies for your customers in an automated way. They actively look at the statistics of each agency, such as their historical performance in specific sectors of debt. Then, it uses this data and a smart rules engine to distinguish which agencies are best for specific customers. This is all automated after being configured by your team, providing sophisticated agency placement that takes every factor into account.
Sophisticated agency placement with Placements Plus
More likely than not, debt collection agency placement is something you’re actively doing already. In which case, you are fully aware of the time and effort that goes into finding the perfect agency for your customers.
With C&R Software’s Placement Plus, you can have the best of both worlds with sophisticated agency placement that is completely automated. It uses AI and smart rules to thoroughly analyze each agency and provide you with the best options for your customers. Better yet, it also provides improved communications and reconciliation features between you and the agencies you choose.
To find out more about Placements Plus and how it can help you find the right agencies for your customers, contact a member of our team today.
