Is your business Reg E Compliant?
What do your REG E communications look like? Letters? Email? Sending them to your website?
How’s that working for you?
Reaching delinquent customers and getting paid is a lot like Fly Fishing. You cast the line out many times, and often must try different types of bait before you get a fish on the line. Then you reel the fish in, but if you pull too hard, or too fast, you will lose them.
Delinquent customers may avoid calls, but respond to text messages. They may ignore mailed letters, but respond to emails. When you finally get a response, (or get them on the line so to speak), you have one shot at getting paid. A disjointed payment collection process that fails to secure a payment arrangement while the agent is on the line can lead you back to square one with the consumer. Casting the line and trying to get another bite.
Payment Plans are the best solution
Getting payments from consumers with debt collection accounts has always been difficult. As a result, companies take partial payments and establish payment plans in an effort to collect the most money. This process has been going on for decades.
The consumers are not in a position to borrow money to pay the debt in full. They do not have financial reserves or savings to pay off past due accounts. In many cases, a payment arrangement is the only way to get paid on past due accounts. Debt collectors figured out years ago that customers with delinquent accounts are past due because they neglect to pay their bills. They do not have adequate cash flow or good enough money management skills to keep debts current, let alone catch up old accounts. For these customers setting up a payment arrangement, is a bit like putting your finger in a dike.
Payment Collection Process and staying Reg E Compliant
Debt collectors have tried many different ways of collection money. In the 70’s they took postdated checks. Even today, postdated arrangements are common. With the emergence of debit cards and the popularity of credit cards, setting up auto debits on these accounts have become the go-to solution for automating the payment collection process with delinquent consumers.
The entrance of Reg E has thrown another roadblock into the payment collection process.
Companies MUST find new processes that remain Reg E Compliant during the payment collection process, along with establishing reliable repayment plans customers will actually follow for more than a single payment. The new Reg E compliance requirements is precisely why PDCflow created our Reg E solution allowing the consumer to sign the payment arrangement agreement on their Smartphone, while still on the line with the bill collector. The representative can see the signature in real time, which allows them to be much more effective in setting up those all important recurring schedules.
For more information on PDCflow’s eSignatureflow, click HERE or call 877-732-4814.