The Lexop team recently attended the 2023 Receivables Management Association International (RMAi) conference in Las Vegas, Nevada. The event brought together industry experts and leaders to discuss the latest developments, trends and opportunities across receivables management functions.
The conversations ranged from incoming legislation, compliance in collections, the possibilities of AI tools and how audit trails and IP tracking is critical with the rise in repossessions and disconnected services.
In this blog, we share the five takeaways from the conference and explore the key themes that emerged from the event.
1) Incoming legislation and the impact on collection processes
One of the big topics of discussion at the conference was the incoming legislation that will impact how you can communicate with your customers, specifically under the Telephone Consumer Protection Act (TCPA) and the Fair Debt Collection Practices Act (FDCPA). Many companies are still using automated dialers as a tool in their collections strategy, and current protection acts and incoming new rules will impact their outreach.
Under the TCPA, debt collectors are not allowed to use auto-dialers or automated phone calls to harass consumers in relation to unpaid debt.
On January 20, 2030, the Federal Communications Commission (FCC) issued a new rule coming into effect as of July 2023 that places call limits and opt-out requirements for artificial and pre-recorded voice calls on certain non-telemarketing calls to residential numbers. They also announced that callers must have a mechanism for consumers to opt out of any future calls. Under the new rule, to be exempt from the TCPA’s consent requirements, callers will be limited to three pre-recorded non-commercial, non-telemarketing, or non-profit calls per 30 days. An amendment has also been made to the original order that allows callers the option to obtain either oral or written consent if they wish to make more calls than the limits provided.
With these new rules, businesses relying on outdated collection tactics using auto-dialers will lose the ability to have frequent outreach in the early stage of collections.
2) Toolbox approach to collections
We had many discussions around the importance of implementing a toolbox approach to collections and knowing when to use each tool is critical for successful collections. Businesses that are seeing positive results are using a variety of communication channels to reach consumers, including phone, email and text. It comes down to meeting their communication preferences to increase the likelihood of repayment and this omnichannel approach is a big trend we expect for 2023. Live agents are still needed, but there’s an opportunity to leverage technology to help customers self-cure and improve productivity by dedicating agents to collecting from late-stage and high-risk accounts.
3) The AI buzzword in collections
The word Artificial Intelligence (AI) was buzzing around the room and it’s no surprise as tools like Chat GPT have blown up this year. The common thread was that AI tools could help collection teams with improved agent scripting on calls and reduced time in post-call documentation. However, compliance, limited consumer data and resources to implement these AI tools are still concerns. It will be interesting to see how the conversation changes on this a year from now.
4) Reporting and data analytics to improve processes
The leadership teams we spoke to are prioritizing data analytics and access to reporting dashboards. They need to have the ability to measure their collection efforts and use data analytics to improve their processes, especially in this current economic landscape with delinquencies on the rise. On the one hand, they want the collection tools to be easy for their collection teams to use and increase efficiency while at the same time having access to high-level reporting for strategic decisions. Tools that can do both seamlessly have a leg up.
5) The increased need for audit trails and IP tracking
With the rise in repossessions and disconnected services, there’s an increased need for audit trails and IP tracking. Having a proper audit trail provides a clear and transparent record of communication during the collection process and can help prevent disputes or legal challenges. IP tracking helps identify customers’ geographic location and potentially gain insights into their identity and behavior. However, it is important to note that tracking must meet applicable laws and regulations, such as data protection and privacy laws.
Similar to the AFSA show we attended in January, we heard a lot of optimism and eagerness to implement new strategies for better collections. In our conversations, businesses were excited to hear how Lexop’s Debt Collection Software addresses many of these topics, from early-stage digital outreach to recovery campaigns that measure progress to audit trails for every certified email ent.
We’re glad we had the opportunity to attend and make great connections. Want to know when we’ll be at our next conference or tradeshow? Check out our LinkedIn page for more details about upcoming events.