Debt Consolidation Assistance :: Online Debt Collection
Online Debt Collection:
How the Collection of Debts is Going Online
As defaulted loans are on the rise, online debt collection is quickly the newest emerging trend in debt collection solutions. Creditors are looking for technology and debt collection agencies that offer new debt management and collection solutions that are available online. In this new era of online debt collection, two companies are making big moves – ScoreNet, owned by Fair Isaac, and Online Resources, a software developer and manufacturing firm.
Who is Online Resources?
Online Resources makes a popular online debt collection program called Virtual Collection Agent. This unique piece of software offers clients an online payment system called CollectPay that lets debtors set up customized online payment plans.
Does Online Debt Collection Work?
According to Online Resources and Fair Isaac research, debtors that use the web and an online interface to “fix” their delinquent credit and set up their own payment plan were 57 percent more successful in paying back their loans than debtors that paid through traditional methods.
Because debtors can see their balance decreasing, watch their monthly payments, follow their contact with debtors, and fully track their debt with an online debt collection system, they’re more in tune to the process and more likely to pay. Another benefit is the supposed privacy that the Internet offers. Consumers dealing with delinquent or overdue bills tend to prefer the impersonal nature of online debt collection over dealing with a personal debt collector every month on the phone.
What Else Can Online Debt Collection Do?
Online debt collection also acts as a CRM (customer relationship management) tool. As debtors log in, they can see and track all the correspondence from their creditors, follow their debt repayment progress and get a complete picture of their “file.” In turn, creditors can access the same system to track a debtor’s progress.
While not all debt recovery has gone to online debt collection, a huge chunk is moving in that direction. While phone calls and letters are still effective, creditors will soon find that a well-run online debt collection tool may be their best defense against delinquent and bad debts.
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