EXISTING CLIENTS: 504-888-8300 SALES OFFICE: 504-305-3103

Technology and debt collection

If your business relies on billing to collect customer payments, you've probably tried to come up with creative ways to notify people of the money they owe. Using phone calls is a tried and true method, but new government regulations and the pervasiveness of caller ID on smart phones has made it easier for consumers to screen out calls from people they don't want to talk to. Where else might a business turn to notify a customer of their required payment?

According to Business Insider, the average person touches their phone more than 2,000 times per day. Although they could be ignoring calls, mobile users are still texting, browsing the web, checking e-mails and playing games. So, it makes sense that a business would want to send them notifications on the device they are already using. However, federal laws dictate how these calls, e-mails or text messages can be made, and many tactics that could come to mind may violate existing law in some way.

Technology outpaces the law

Keeping up with the flow of business is a daily challenge for most companies. As technology changes, it may cause growing pains in your operations. When it comes to communication and debt collection, the law is often behind technology in terms of being up to date.

While the iPhone is now a decade old, the laws that regulate its use for business are older than the technology itself, like the Telecommunications Protection Act originally passed in 1991 that sought to restrict robocalls and telemarketers. The application of that law to today's technology and communication environment could, in some cases, be too broad to conduct business efficiently.

Rely on a debt collection agency that understands the law

Small businesses are not regulated in making debt-related calls in the same way as debt collection agencies. Your business has a consumer-level customer base, whereas a debt collection agency is a business-to-business service. Therefore, the law recognizes that your methods may be different in collecting debt.

However, as a business owner, you understand the rules and regulations of your industry, but debt collection practices can require equally specialized knowledge in a new area. You might use a third-party business for marketing or payroll, and hiring a debt collection agency can help you keep your company focused on the goods and services you offer instead of the efforts of collecting debts. A debt collection agency can balance your need to get paid with being good stewards of the law to consumers.

No Comments

Leave a comment
Comment Information


3800 Florida Avenue
Suite 100
Kenner, LA 70065

Toll Free: 877-888-8307
Phone: 504-888-8300
Phone: 504-305-3103
Map & Directions