Is inaccurate right-party contact data putting your collections business at risk?
See how you can obtain better contact information to keep your business safe and your competition at bay.
Right-party contact (RPC) information—such as phone numbers, addresses and employment—helps collectors reach the right person on the first attempt. When it comes to RPC data, there are two factors that put your company’s bottom line at risk: growing competition and government oversight.
The challenge is getting actionable information while adhering to strict guidelines that limit who you can contact, how you can reach them, how often you can contact them, what you can say and so on. In today’s environment, bad information equates to lost time and less profitable results.
It’s critical to not waste time or violate laws by dialing wrong phone numbers, mailing letters to old addresses, contacting wrong parties, or trying to collect from someone who’s in a protected class. One of the only viable solutions to debt collection that will still earn a worthwhile return on investment (ROI), is obtaining fresh consumer information.
Keep up with the collections competition
According to a TransUnion study, 62% of collectors can locate an individual in less than one week. Respondents in the same survey report having one best phone number for an individual as the most important aspect of right-party contact information.
When it comes to sources, more than 8 in 10 (86%) collectors say online databases greatly improve the accuracy of consumer information. Despite the benefits of using online databases, only 58% of respondents report they “always” use them. Approximately 40% “sometimes” use databases.
As the number of collectors who use online databases increases, the time it takes to locate the right party should in turn decrease. That means competition will be that much stronger. If you’re not consistently using online databases as part of your collections strategy, you could unnecessarily be wasting time and money, or putting your company at risk.
View the right-party contact insight guide for more benchmarks and tips to improve your RPC strategy.
How to obtain better contact information
Successful debt collection starts with learning as much as possible about the party in question. For example:
- How big is the debt?
- What assets are held?
- Does the consumer have any other unpaid debt?
- Does the consumer have a job? If so, what’s the income?
- Where is the consumer currently residing?
There are a variety of questions to ask yourself depending on the situation. The answers are key indicators of the likelihood of collecting and initiating an effective process.
Knowing the history about a consumer or business is key to locating and collecting at full speed while still operating with agility and accuracy. By arming yourself with better data, you have the ability to shorten the collections lifecycle and increase revenue, while being confident that you’re operating in compliance.
Gathering the right information is a crucial part of the collections lifecycle but it’s not a solution in and of itself. An efficient strategy ensures you have the right information, systems and procedures in place to maximize resources and reduce waste. Read our right-party contact insight guide for more including five ways to enhance your strategy.