Follow up methods in a best debt collection software

Published On : October 13, 2023

Debt collection involves various payment follow-up methods to recover outstanding debts. These methods range from gentle reminders, such as letters or phone calls, to more assertive actions like sending demand letters, negotiating payment plans, or even resorting to legal actions like filing a lawsuit or garnishing wages. The choice of method often depends on the debtor's responsiveness and the severity of the debt. Effective debt collection strategies strike a balance between assertiveness and empathy to maximize the chances of successful recovery while maintaining a positive customer relationship when possible.

What is "PTP"

In debt collection software, "Promise to Pay" (PTP) is a critical feature that allows debt collectors to document and manage commitments from debtors to make future payments. Debt collection agencies can record the debtor's agreed-upon payment date, amount, and method. PTP tracking ensures that both the collector and debtor have a clear understanding of the payment arrangement, which helps streamline the collection process and maintain compliance with relevant regulations. This feature also facilitates effective follow-up and automated reminders, improving the chances of successful debt recovery while providing a transparent and organized approach to managing promises to pay.

What is Autoloan

In debt collection software, Auto loan follow-up methods streamline the process of tracking and managing outstanding car loan payments. This functionality allows financial institutions and lenders to efficiently monitor and communicate with borrowers who are behind on their auto loan payments. Debt collection software automates payment reminders, sends notifications, and offers customizable communication channels such as emails, text messages, or automated calls. It also helps track payment history and provides tools for setting up payment arrangements or negotiating settlements, ultimately aiding in the timely recovery of auto loan debts while ensuring a structured and compliant approach to collections.

What is " Back to Bank"

In debt collection software, the "Back to Bank" follow-up method refers to a specific process where delinquent debts are returned to the originating financial institution or bank for further handling. When other collection methods prove unsuccessful, debt collection software allows creditors or collection agencies to efficiently manage and document this handover process. This feature often includes detailed account information, audit trails, and necessary documentation for a smooth transition of accounts back to the bank's internal collection department or legal team. It ensures a transparent and compliant approach to resolving non-performing loans or overdue debts, ultimately enabling banks to explore alternative recovery strategies.

What is " Balance in full"

In Debt collection software, "Balance in Full" follow-up method signifies a debt resolution scenario where a debtor agrees to pay the entire outstanding debt amount in one lump sum, effectively closing the account. This feature allows collection agencies or creditors to document and manage these payments, offering tools for generating settlement agreements, tracking the payment's progress, and ensuring that the full balance is satisfied. It streamlines the process of concluding a debt collection effort on a positive note, offering both parties a clear and efficient way to resolve the debt while maintaining compliance with relevant regulations.

What is " Call Back "

In debt collection software, the "Call Back" follow-up method refers to a structured approach for scheduling and managing follow-up phone calls with debtors. This feature enables collection agents to set reminders for contacting debtors at specified times, ensuring timely and consistent communication. It also provides a platform for documenting the outcomes of these calls, whether they involve payment arrangements, negotiation progress, or other important information. "Call Back" capabilities help maintain an organized and efficient approach to debt collection by facilitating ongoing conversations and increasing the chances of successfully recovering overdue payments.

What is "case to be closed"

In debt collection software,"Case to be Closed" follow-up method refers to a vital feature that indicates the resolution of a debt collection case. Once a debtor has fully paid their outstanding debt or fulfilled the agreed-upon terms, this feature enables collection agencies or creditors to formally close the case. It provides tools for documenting the final outcome, ensuring proper account closure and compliance with regulations. By efficiently managing and confirming case closures, debt collection software helps maintain a well-organized and transparent approach to debt recovery, signaling the successful conclusion of the collection effort.

What is " current dated cheque "

In debt collection software , the "Current Dated Cheque" follow-up method refers to a strategy used to secure payments through post-dated checks. Debt collection software allows creditors or collection agencies to record and manage such arrangements. It enables the scheduling and tracking of post-dated checks to ensure they are deposited on the specified dates. This feature enhances the efficiency and transparency of collecting payments, particularly for debtors who opt to provide post-dated checks as a commitment to fulfill their debt obligations.

What is " Left message on Recorder "

In debt collection software "Left Message on Recorder" follow-up method refers to a tool for recording and tracking communication attempts with debtors. When a debt collector leaves a message on a debtor's voicemail or answering machine, this feature allows for documentation, time-stamping, and follow-up management. It aids in keeping an organized record of communication attempts, ensuring compliance with regulations, and improving accountability in the debt collection process. It also provides an audit trail of these interactions, which can be valuable for transparency and legal compliance.

What is " Disconnected "

The "Disconnected" follow-up method in debt collection software refers to a scenario where a debtor's contact information, such as their phone number or address, is found to be invalid or no longer in service. This feature assists collection agencies or creditors in managing cases where they cannot reach debtors due to disconnected contact details. Debt collection software typically helps track these instances, flagging them as challenges that need to be addressed by updating or locating new contact information. Managing "Disconnected" cases is crucial for maintaining the efficiency and effectiveness of the debt collection process, ensuring that communication can be reestablished to work toward resolving outstanding debts.

What is " Do not call back "

The "Do not call back" follow-up method in debt collection software is a critical compliance tool that ensures debt collectors do not contact individuals who have requested not to be called. It helps prevent unwanted or unauthorized communications, thereby maintaining legal compliance and respecting debtors' preferences to protect their privacy. This feature is essential for upholding regulations and maintaining a positive reputation for collection agencies.

What is " Hold "

In debt collection software, the "Hold" follow-up method allows collectors to temporarily suspend or delay their collection efforts for a specific account. This feature is valuable when there's a need to gather additional information, await a promised payment, or when legal or compliance issues arise. Putting an account on hold ensures that follow-up actions are paused for the time being, providing flexibility and a structured approach to managing complex debt collection cases, without losing track of ongoing or pending tasks.

What is " Expired "

The "Expired" follow-up method in debt collection software is used to manage accounts where the statute of limitations on debt collection has passed, rendering the debt unenforceable in a legal context. Debt collection software helps identify and categorize these expired accounts, preventing further collection actions that could potentially violate debt collection laws. This feature ensures compliance and legal adherence, safeguarding both the debtor's rights and the collection agency's reputation while effectively closing cases where collection is no longer legally viable.