Collectors are responsible for re-establishing contact with delinquent customers and providing services that facilitate repayment of the loans, regardless of the technology utilized. In Collections, automated dialing systems effectively increase the ability for the collector to reach delinquent customers unwilling to proactively reach out to the creditors. Automated dialing systems are used in many other ways not related to debt collection: telemarketers use them to reach potential customers, schools use them to notify parents of closings due to inclement weather. The technology is the same but the intent is different based on the user.
The Telephone Consumer Protection Act (TCPA) prohibits creditors from using automated dialing systems to call cell phone numbers without consent from the customer. The TCPA’s original purpose, protecting consumers from costly charges as a result of automated calls, has been subsumed by the new goal of preventing overly numerous call attempts to a number that (generally) is directly connected to the customer. It does not change the purpose of collection calls, it merely makes the process less efficient.
Regulating which numbers can be called using an automated dialing system is also counter to the growing reality of wireless-only households. According to the Center for Disease Control's 'Wireless Substitution' latest report (Early release data, July-December 2012), over one third (36%) of adults in the United States live in a household with only wireless telephone service. That figure is even higher (45%) when you look at children living in the US. With an average annualized growth rate of 34%, it is conceivable that sometime before 2020 only a minority of the country's adults will be living in households with a landline telephone that can be autodialed.
The CFPB should allow for the autodialing of all telephone numbers provided by the customer without byzantine consent requirements. Regardless of whether it is at application or during the course of normal business, once the number is provided by the customer to the creditor, that number should be considered another viable option for collection.
The most cost-effective alternative that still protects against numerous attempts is for the customer to pick up the phone on the first call. :-)
All joking aside, the dialer still is the best solution for managing call attempts. Speaking with the customer is, and will always be, the most direct way of resolving a delinquent debt. The technology can be adapted to put limits on how many times a particular number, account, or customer can be called during the day or month. Many creditors have already enacted such changes proactively to ensure that they *don't* harass the customer but still make a reasonable effort to collect on the debt. It's the same solution that prevents Massachusetts accounts from being called more than twice in a seven-day period.
Hi Cathy, I'd like to reply to your comment, "Why not just assign the debt to one collector who would use his/her very own fingers on the buttons to place the collection call?"
It's a good question, but unfortunately the answer is (of course) complicated. I can think of two quick reasons why that wouldn't be feasible:
1. Manually dialing phones slows down businesses and raises costs;
2. Automated dialing has preventive measures built in that manually dialing does not.
To expand on the first point, debt collectors are cost centers, meaning their primary goal is to minimize costs (i.e., delinquent monies). An automated dialing system allows for a much more efficient manner of calling delinquent account-holders. Representatives are able to review the account history and status while the system connects the call, so the rep can quickly engage the customer. If a customer has given their cell phone or home number to the lender knowing it may be used for future contact attempts, there is no difference to the customer if the call is executed through a computer or dialer on the keypad.
To expand on the second point, automated dialing systems have a lot of built in controls that actually protect the consumer. People make mistakes, and so do collectors: calling before 8am or after 9pm, calling a number that has been restricted through a Cease & Desist request, or even calling many many times throughout the day. Automated dialers can have filters in place that restrict calls to customers based on location, time of day, or even how many attempts have already been made. In addition, calls made through the dialer can all be recorded so if there is a problem with the representative, the customer can refer back to the recording and the truth will come out.
Thanks, and have a great day.
dan.helfgott
1
Collectors are responsible for re-establishing contact with delinquent customers and providing services that facilitate repayment of the loans, regardless of the technology utilized. In Collections, automated dialing systems effectively increase the ability for the collector to reach delinquent customers unwilling to proactively reach out to the creditors. Automated dialing systems are used in many other ways not related to debt collection: telemarketers use them to reach potential customers, schools use them to notify parents of closings due to inclement weather. The technology is the same but the intent is different based on the user. The Telephone Consumer Protection Act (TCPA) prohibits creditors from using automated dialing systems to call cell phone numbers without consent from the customer. The TCPA’s original purpose, protecting consumers from costly charges as a result of automated calls, has been subsumed by the new goal of preventing overly numerous call attempts to a number that (generally) is directly connected to the customer. It does not change the purpose of collection calls, it merely makes the process less efficient. Regulating which numbers can be called using an automated dialing system is also counter to the growing reality of wireless-only households. According to the Center for Disease Control's 'Wireless Substitution' latest report (Early release data, July-December 2012), over one third (36%) of adults in the United States live in a household with only wireless telephone service. That figure is even higher (45%) when you look at children living in the US. With an average annualized growth rate of 34%, it is conceivable that sometime before 2020 only a minority of the country's adults will be living in households with a landline telephone that can be autodialed. The CFPB should allow for the autodialing of all telephone numbers provided by the customer without byzantine consent requirements. Regardless of whether it is at application or during the course of normal business, once the number is provided by the customer to the creditor, that number should be considered another viable option for collection.
View this comment in the discussion thread
dan.helfgott
2
The most cost-effective alternative that still protects against numerous attempts is for the customer to pick up the phone on the first call. :-) All joking aside, the dialer still is the best solution for managing call attempts. Speaking with the customer is, and will always be, the most direct way of resolving a delinquent debt. The technology can be adapted to put limits on how many times a particular number, account, or customer can be called during the day or month. Many creditors have already enacted such changes proactively to ensure that they *don't* harass the customer but still make a reasonable effort to collect on the debt. It's the same solution that prevents Massachusetts accounts from being called more than twice in a seven-day period.
View this comment in the discussion thread
dan.helfgott
3Hi Cathy, I'd like to reply to your comment, "Why not just assign the debt to one collector who would use his/her very own fingers on the buttons to place the collection call?" It's a good question, but unfortunately the answer is (of course) complicated. I can think of two quick reasons why that wouldn't be feasible: 1. Manually dialing phones slows down businesses and raises costs; 2. Automated dialing has preventive measures built in that manually dialing does not. To expand on the first point, debt collectors are cost centers, meaning their primary goal is to minimize costs (i.e., delinquent monies). An automated dialing system allows for a much more efficient manner of calling delinquent account-holders. Representatives are able to review the account history and status while the system connects the call, so the rep can quickly engage the customer. If a customer has given their cell phone or home number to the lender knowing it may be used for future contact attempts, there is no difference to the customer if the call is executed through a computer or dialer on the keypad. To expand on the second point, automated dialing systems have a lot of built in controls that actually protect the consumer. People make mistakes, and so do collectors: calling before 8am or after 9pm, calling a number that has been restricted through a Cease & Desist request, or even calling many many times throughout the day. Automated dialers can have filters in place that restrict calls to customers based on location, time of day, or even how many attempts have already been made. In addition, calls made through the dialer can all be recorded so if there is a problem with the representative, the customer can refer back to the recording and the truth will come out. Thanks, and have a great day.
View this comment in the discussion thread