The recently proposed changes to the Fair Debt Collections Act (FDCA) by the Consumer Financial Protection Bureau (CFPB) are a major shift from traditional consumer contact methods, driving the collections industry to a more technology-driven solicitation practice. The proposal, which is currently under a review period, substantially reduces the number of times a collector may call on a debtor from seven times per day, to seven time per week.

Regardless of the reduction, consumers aren’t answering their phones anyway – it’s not their preferred communication channel. In fact, according to a recent study, only 20% of consumers preferred a phone call when a business needed to contact them about a financial issue which might negatively impact their credit rating*, meaning digital is king.

The regulatory bodies are further pushing this digital shift, prompting debt collection businesses to move away from the traditional methods of collecting to online. This is a win-win for both the consumer and the business soliciting accounts for payment.  For the business, it reduces overhead cost and time to collect. For the consumer, it gives them precisely the communication channel and experience they are asking for.

Introducing eResolve, Experian’s solution to bring your collections practices into the digital age. eResolve offers consumers a less threatening option of resolving debt over a web-enabled device at a convenient time and location and on mutually acceptable terms. This online platform automates and moderates the dialogue between the two parties, negotiates on your behalf and facilitates payment processing to help you meet compliance requirements.

To learn more, please click on below button and select “eResolve” under API Product:

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