Making sure your operations are compliant across regions, industries, and a growing customer base can be a challenge. With legacy software, achieving this with inflexible systems becomes an even bigger challenge.
Eric Ferguson has over three decades of experience in collections, specializing in technology utilization within the industry.
Striking a balance between technology and customer relationships is the key to enhancing your collections performance. By doing so, you can have the information you need to build effective collections strategies while saving time for you and your team.
Customer data is king when it comes to your customer journey through collections. It helps you paint a clear picture of the past, present and future of their finances to support your strategies. And by harnessing it properly, you can shape their future to be one of financial stability.
Regularly communicating with customers throughout their collections journey is key to guiding them back to financial good health, but must be done mindfully and without being seen as predatory.
General Data Protection Regulation (GDPR) covers the key principles of customer data privacy and protections. These rules apply across industries and regions, with the unified goal of giving customers more control over their personal data in a digital world.
Compliance in collections is about more than making sure you’re following the rules. It’s about protecting customers and following the right processes and procedures to help them reach financial stability.
Deciding to transition your entire collections software is a time consuming but necessary part of modernizing your strategy. Refusing to do so means you may end up losing your customers or risk legal repercussions through breaching data regulations.
Customers entering collections are facing stressful and difficult circumstances. It’s your responsibility to support these customers to financial stability through positive engagement at each step of their journey. That way, they will be more likely to engage with you, and it will be easier for you to help them.
The Gramm-Leach-Bliley Act stands at the forefront of financial regulations to protect sensitive customer data. Any breach of the regulation can lead to significant fines and permanent damage to your brand as a result.
The hiring of 75 more enforcement personnel at the CFPB means the likelihood of a strict CFPB audit on your collections journey has increased dramatically, and by 50% to be exact.
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