Way back in January, 2024 was looking strong with decreasing inflation holding the promise of interest rate cuts that would ease the strain on consumer finances and reopen a tight market. Three months into the year, the outlook isn’t looking quite as rosy, but optimism for change persists. While the looming threat of a recession has passed, the outlook seems to point to inflation sticking around and consumer sentiment on the financial outlook this year is mixed. Case in point – even Trader Joe’s gave in and raised the price of bananas, from 19 to 23 cents, for the first time in 20 years, with ..read more

When it comes to financial and lending services, the customer journey doesn’t drop off once a consumer enters delinquency—in fact, quite the opposite. In the world of debt collection, understanding this unique, and often overlooked, part of the customer journey is critical to securing repayment and debt recovery. Welcome to the Debt Resolution Funnel. This goes beyond tracking roll rates and primary vs secondary vs tertiary account placements; it instead looks at the debt lifecycle from the consumers’ perspective in well-defined stages with the goal of repayment. And for TrueAccord, it even go ..read more

After three decades of providing exceptional customer experience, a leading national bank recognized a lot has changed in the world of personal banking, technology, compliance, and, in turn, debt collection. To continue delivering the level of service their customers expect meant it was time for the bank to update their recovery methods for the new digital age. Although the bank had seen moderate success in late-stage collections with their call-and-collect vendor, they had a list of goals that they were unsure their existing collection provider could achieve: Improve and increase liquidation ..read more

If your business plans to use outbound calling as the main mode of engaging past-due customers in 2024…good luck. Good luck reaching the right number for the target customer. Good luck getting them to commit to repayment over the phone. Good luck not getting complaints. And if the plan is only to use outbound calling…be prepared to start accepting more losses in 2024. Even if you can get the right customer on the phone, studies show 49.5% of consumers take no action after a collection call. Let’s look at the challenges around right-party contact rates, consumer complaints, and the timely facto ..read more

2023 brought a whirlwind of an economy, and we spent most of the year trying to predict when things would finally turn around. The good news is that things are looking up, and so are consumer sentiments on their financial outlook. Despite the optimism, consumers are still battling high prices and interest rates, though the holiday shopping numbers would make you think otherwise. For consumers, the challenge of balancing finances persists and holiday spending hangovers are adding to the swing. If you’re a creditor or collector working with financially distressed borrowers, considering consumer ..read more

In our first blog post on the New York and New York City’s proposed amendments to their debt collection laws, we explored the proposed amendments and the alternative opt-out laws in the federal Fair Debt Collection Practices Act (FDCPA) and the Washington, DC debt collection amendment that achieve the same objectives without the unintended consequences. In this part two, we explore the benefits of digital communications for consumers in all other states and jurisdictions—except New York—as well as these unintended consequences New Yorkers face from these potential amendments. Since the New Yor ..read more

The New York City Department of Consumer and Worker Protection (NYC DCWP) just released an updated proposed amendment to its rules relating to debt collection. This updated amendment changes significantly more than the first proposed amendment released by NYC DCWP last year. Interestingly, this update contains revisions that are similar to the New York Department of Financial Services (NYDFS) proposed amendments to New York’s debt collection law, 23 NYCRR 1, that NYDFS released last year. After receiving a number of comments to the proposal, including a comment from TrueAccord, NYDFS paused th ..read more

It’s hard to believe that the year is already winding down, but consumer debt certainly isn’t. And not having the right collection partner today can equate to missed recovery opportunities tomorrow. So what makes the end of the year such an important time to evaluate your current collections partner? Let’s take a look at some of the timely factors. Why Evaluate Your Collection Partner in Q4? To be Better Prepared for 2024 Be Ready for the Aftermath of Holiday Spending It should come as no surprise that consumer spending typically increases in the last few months of the year—Black Friday, Cyber ..read more

Did you know one of the most common reasons for missing a payment is because delinquent customers simply forget to pay their bill? But staying top of mind for consumers is harder than ever using traditional call-and-collect methods considering stricter compliance regulations and the fact that 94% of unidentified calls go unanswered. Plus, surveys have found that when it comes to debt collection, 40% of consumers state email as their first preference of communication, and contacting through a customer’s preferred channel first can lead to a more than 10% increase in payments. But, even if your ..read more

We’re approaching the end of the year and fall is in the air – along with consumer financial uncertainty. Economic stressors persist and are likely contributing to many consumers relying on credit to cover expenses, while the resumption of student loan payments adds another financial obligation to the mix. For consumers, the conundrum of balancing finances continues as the holiday spending season sneaks up. If you’re a creditor or collector working with financially distressed borrowers, considering consumer situations and preferences when collecting is critical to your success. Read on for our ..read more