Tag: debt collection

Debt collectors face many challenges when trying to contact the right people at the right time and improve collection strategies.

Using AI in debt collection can help financial institutions leverage technology to ensure more accurate and timely collections.

Here’s a step-by-step guide on how to create an effective credit union collection strategy. Read on to learn more.

In this blog post, we'll explore skip-tracing best practices, offering valuable insights and practical tips and tools. Read more!

Automated debt collection can help you save time and money while increasing customer satisfaction and long-term values.

Discover the different options and routes you can take to improve your debt collection process, enhance decisioning and maximize profitability. Read more!

New challenges created by the COVID-19 pandemic have made it imperative for utility providers to adapt strategies and processes that preserve positive customer relationships. At the same time, they must ensure proper individualized customer treatment by using industry-specific risk scores and modeled income options at the time of onboarding As part of our ongoing Q&A perspective series, Shawn Rife, Experian’s Director of Risk Scoring, sat down with us to discuss consumer trends and their potential impact on the onboarding process. Q: Several utility providers use credit scoring to identify which customers are required to pay a deposit. How does the credit scoring process work and do traditional credit scores differ from industry-specific scores? The goal for utility providers is to onboard as many consumers as possible without having to obtain security deposits. The use of traditional credit scoring can be key to maximizing consumer opportunities. To that end, credit can be used even for consumers with little or no past-payment history in order to prove their financial ability to take on utility payments. Q: How can the utilities industry use consumer income information to help identify consumers who are eligible for income assistance programs? Typically, income information is used to promote inclusion and maximize onboarding, rather than to decline/exclude consumers. A key use of income data within the utility space is to identify the eligibility for need-based financial aid programs and provide relief to the consumers who need it most. Q: Many utility providers stop the onboarding process and apply a larger deposit when they do not get a “hit” on a certain customer. Is there additional data available to score these “no hit” customers and turn a deposit into an approval? Yes, various additional data sources that can be leveraged to drive first or second chances that would otherwise be unattainable. These sources include, but are not limited to, alternative payment data, full-file public record information and other forms of consumer-permissioned payment data. Q: Have you noticed any employment trends due to the COVID-19 pandemic? How can those be applied at the time of onboarding? According to Experian’s latest State of the Economy Report, the U.S. labor market continues to have a slow recovery amidst the current COVID-19 crisis, with the unemployment rate at 7.9% in September. While the ongoing effects on unemployment are still unknown, there’s a good chance that several job/employment categories will be disproportionately affected long-term, which could have ramifications on employment rates and earnings. To that end, Experian has developed exclusive capabilities to help utility providers identify impacted consumers and target programs aimed at providing financial assistance. Ultimately, the usage of income and employment/unemployment data should increase in the future as it can be highly predictive of a consumer’s ability to pay For more insight on how to enhance your collection processes and capabilities, watch our Experian Symposium Series event on-demand. Watch now Learn more About our Experts: Shawn Rife, Director of Risk Scoring, Experian Consumer Information Services, North America Shawn manages Experian’s credit risk scoring models while empowering clients to maximize the scope and influence of their lending universe. He leads the implementation of alternative credit data within the lending environment, as well as key product implementation initiatives.

Beth Bayer, Vice President of Energy Sales and Danielle Grigaliunas, Product Manager of Collection Solutions, discuss the changing collections landscape.

Leverage the strength of today's economy to solve your most complex problems. Recession readiness means proactively managing your portfolio today.

To provide consumers with protections against debt collectors, the CFPB issued a NPRM to implement the FDCPA earlier this year.

The CFPB recently issued a NPRM to implement the FDCPA. If you aren’t ready for the new CFPB regulation, what are you waiting for? Read more!

To create a socially credible environment, China has developed a mobile app to alerts users when they are within a 500-meter radius of someone in debt.

Recent studies show many Americans consider debt a deal-breaker when it comes to their romantic relationships. Who is carrying the debt?

Lenders and financial institutions can help their customers get on the right financial foot for 2019 by helping them maximize their tax refund.

Tax season sees collections growth every year, as many use their tax refund to pay down debt. Find these consumers to maximize your collections efforts.