Debt Collection Agencies Can Boost Productivity with Cloud-Based Call Centers
Cloud-based communications solutions are a powerful and quickly deployable tool to boost collections. These solutions increase efficiency, reduce overhead, and provide powerful analytical tools for call center management. This article will examine how cloud-based communications platforms support debt collection call centers and can maximize earnings.
What Is A Debt Collection Call Center?
A debt collection call center is an office dedicated to pursuing recovery of outstanding or past due payments. Those debts could be for a variety of goods or services and the amount due can range widely from account to account. Debt collection call centers can be either private businesses or arms of government agencies. Call centers use any available contact information to try and reach debtors and recover outstanding balances. Sometimes, debt collection agencies can recover a debtor's entire outstanding balance. However, it's more likely that the debtor will only pay a portion of the outstanding debt. Actual collection rates will differ from firm to firm. Debt collection agencies are typically most active during recessions or poor economic conditions when default rates rise.
How Do Debt Collection Call Centers Operate?
Debt collection call centers have several overarching goals:
- Contact as many debtors as possible
- Convince as many debtors as possible to begin repayment
- Collect the largest possible percentage of each outstanding debt
Debt collection call centers are staffed by trained and certified collection agents. Some states even require certification to collect from local residents. Using the most recent contact information available, debt collectors will contact debtors and try to convince them to repay their outstanding balances. One tactic commonly employed is offering to develop a monthly or weekly payment plan instead of a lump sum payment. More flexible payment options make it more likely the debtors will be able to pay back the loan principal. These types of flexible payment plans may or may not increase the original interest rate. Another potential tactic is to forgive a portion of the outstanding debt in exchange for immediate payment.
Third party debt collection agencies keep a portion of the revenue they collect on behalf of clients. In other circumstances, a debt collection agency can buy outstanding debt at less than face value and then try to collect an amount greater than the purchase price. Debt collection agencies are strictly regulated by the Fair Debt Collection Practice Act (FDCPA). They are not allowed to use aggressive or abusive tactics against debtors and can face stiff penalties for misconduct.
Why Do Debt Collection Call Centers Need Cloud Communications Platforms?
Cloud-based communication platforms can boost call center productivity while also reducing cost. These solutions boost productivity by eliminating mundane tasks like organizing call lists and manual dialing. Predictive dialers can improve contact rates by skipping voicemail, making it easier to reach debtors live. Cloud-based solutions also make it easier to analyze performance across a firm and at the individual level. Supervisors can easily compare collection rates between different teams or agents and even listen to live calls to monitor performance. This data can be accessed via desktop or remotely on a mobile app, making it possible to monitor progress from anywhere in the world.
Moving your call center infrastructure to the cloud can reduce costs for maintenance, upgrades, and data usage. In addition, top-tier solutions can be quickly and easily deployed. While conventional call infrastructure needs to be physically deployed, cloud solutions can be installed offsite in minutes. In addition, cloud communication platforms can be customized to your company. You can scale support during heavy call periods and reduce it when necessary. Cloud solutions can significantly reduce overhead costs and ensure that even the smallest companies have access to first-class call infrastructure. The best part is that cloud-based call infrastructure can be easily integrated with your existing software, making the transition frictionless.
Why Your Call Center Needs Cloud Software
Debt collection call centers can use cloud-based systems to increase revenue by boosting productivity and reducing overhead costs. Cloud-based solutions:
- Can be quickly and easily deployed
- Eliminate mundane and repetitive tasks
- Allow debt collection agents to maximize reach
- Provide powerful real-time analytical tools
Call centers rely on their technology to empower them to be as productive as possible. With 8x8's Virtual Contact Center you get world-class technology and everything your call center needs in one place. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.