Experian Makes Debt Collection Easier for Consumers

April 20, 2017         By: Mike Dautner

The process of debt collection is often a little tricky, and has implications beyond just money. It is also about identifying the difference between a customer who has simply forgotten to make a payment or someone dealing with a financial hardship.

In addition, it is about acknowledging the difference is important in order for lenders to provide the customized customer experience consumers have grown accustomed to when they pay bills, secure a new loan online, or deal with collections.

Debt collections have been slightly static over the years, that much is for sure. The previous standard set has made it so you must follow the risk relying on standalone solutions that were not able to manage the entire life cycle.

As the lending landscape has evolved substantially, with many new and existing methods of accessing credit, complexity and costs have changed drastically as well.

Experian has announced the launch of two solutions, eResolve, and PowerCurve Collections, to give consumers an easier avenue to resolve their debit and to streamline the management process for businesses. eResolve is the first self-service platform to help consumers negotiate and resolve past due obligations while PowerCurve Collections brings together data, decisions, and the collections workflow in a single, unified system.

“We have to move debt collections into the modern age,” said Craig Boundy, chief executive officer, Experian North America. “Using our data and analytics, lenders can uncover the best way to personalize the collections process to improve the customer experience and simplify debt management. The advanced, data-driven decisioning we offer can prepare lenders against rising delinquencies, while increasing the long-term value of their customers.”

“Banks are faced with managing multiple collections systems … and want to consolidate these systems into one integrated system. The cost to service a delinquent loan was eight times the cost of servicing a performing loan,” said Craig Focardi, principal executive advisor at CEB, now part of Gartner. “Client interaction is expected to increase across collections, loss mitigation, and foreclosure processes which leads to more costly interactions. Failure to provide better service may result in a loss of customer lifetime value. When successful, loan collections helps retain customers to extend the customer lifecycle and cross-sell additional products.”