According to the 2016 Collection Agency Operations and Technology Survey, debt negotiation software is low on the technology priority list for adding new payment solutions. This viewpoint is worthy of reconsideration because virtual negotiation software can bring all kinds of advantages. Here are three to consider:
Negotiating a debt settlement takes up your agents’ time. On large settlements this may be the best course of action, but possibly not on smaller amounts. With debt negotiation software your agents aren’t doing the negotiation, the software is. This frees up a lot of your agents’ time so they can focus on other things.
The debt negotiator, once it has come to an agreement with the debtor, can set up automatic payments. The debt negotiation software can be programmed to suggest automatic payment plans and then set up automatic credit card or Automated Clearing House (ACH) payments. Once a payment plan is agreed to and the automatic payments are in place, it’s all hands-off; payments are collected, accounts are credited, records are kept and there is little chance of default.
One of the biggest things the Consumer Financial Protection Bureau (CFPB) watches for is UDAAPs: Unfair, Deceptive, or Abusive Acts and Practices. UDAAPs can be anything from deceptive language used to general feelings of discomfort by the debtor. The CFPB’s favorite place to look for UDAAPs is in agent-assisted transactions. Even the most conscientious agent can slip up every now and then. They don’t even need to slip up; the debtor can take things the wrong way and file a complaint with the CFPB. When there are enough complaints, the CFPB will audit you. They won’t try to prove that you are in non-compliance. You have to prove that you are not in non-compliance.
Virtual negotiation software solves that. Since it is software, the language, steps, procedures, and responses used in the pages presented to the debtor can be programmed to strictly adhere to CFPB standards. The software has no body language or ‘tone’ that can be misinterpreted as being hostile or deceptive, and the debtor is in control at all times; they can disconnect from the negotiator at any time. Any audit by the CFPB is easily resolved; the auditor can be stepped through the negotiation software and then shown recent audits that ensure compliance. Result; the audit is over and resolved in your favor.