Why self-service collections are a win-win for you and your debtors

Self-service debt collection is a process that empowers your debtors to view and manage their accounts whenever and wherever they need - without needing any involvement from you. 

The best way to offer it is via an online portal where debtors can log on, check unpaid balances and historical payments, and make payments when it suits them. 

There are many benefits to offering self-service - not only for your debtors but for you, too. This article explores these benefits for both sides - and why they’re important. 

For debtors

For debtors, self-service offers a far more personalised and convenient experience and greater control over their journey. 

In many cases, self-service can be a much better option for debtors than collector outreach. It empowers them with some control over their debts and makes paying back debts less stressful and intimidating.

For example, if a debtor would like to pay off part of an outstanding balance, they could simply log on to a self-service portal, check their balance and historical payments, and make that payment in seconds. No need to wait in a long queue to speak to a team member, and no need to write a long email. 

Self-service also offers a greater level of transparency, given that debtors are able to access their accounts in real-time, 24/7. This is particularly powerful as part of an omnichannel solution, which allows debtors to pay via whatever channel suits them best and gives them a consistent experience across all channels.

The best solutions will offer a summary of a debtor’s entire debt situation, including detailed information such as the outstanding amount and minimum amount for profile improvement. 

Customers will then be able to perform a range of actions, including choosing between a range of debt settlement options, paying directly by credit or debit card, or contacting collecting agents to discuss further options.

For debt collectors

It has been proven time and time again that self-service is more likely to result in an increase in account resolutions thanks to the frictionless and speedy access it provides for customers. It also offers the potential for an improvement in customer engagement, by allowing customers to communicate with agents how and when they choose. 

Perhaps most importantly, self-service not only aligns with how consumers are behaving post-pandemic but also scales in a way other solutions can’t.

Giving customers agency also mitigates the risk of a reactance play, where customers refuse to pay as a means of taking control of their debt. This is just one way people can act when you take any perceived control away from them, and it rarely leads to a mutually beneficial relationship. 

Empowering debtors and giving them agency, however, will make them feel like they can open up to you and be more honest. And honesty is a rare commodity in debt collections.

It’s a win-win

Improving the debtor experience not only makes them more likely to settle accounts on time but also generally makes them more cooperative and receptive.

There are several other important items to know as you select a self-service debt collection solution. Find out more about Self Service Debt Collections.