When it comes to debt collections, consistent communication with your borrowers is critical. While lenders navigate their way through the current pandemic—finding the balance between the critical need for delinquency management while being supportive and empathetic to account holders and creative solutions that focus on digital engagement are key.
I’m a communications guy through and through, with 25 years helping organizations create powerful communication strategies. I get a lot of questions about digital transformation. Today, I’m thrilled to be a guest contributor. I’ll share four insights I’ve learned about the recent digital transformation with SWBC’s readers.
Leveraging digital consumer engagement in collections is more important than ever
Many experts and economic pundits are forecasting a dramatic increase in delinquencies in the coming year. About 1.9 million vehicles were repossessed in 2019. In the early stages of the pandemic, most states enacted moratoriums on repossessions and most lenders offered deferral programs to help borrowers through the first several months. Those deferral programs have expired in most areas of the country. According to Black Book, “Our survey of lenders and automotive recovery companies suggest that the volume of repossessed vehicles will at least double in the next six months. We expect that there will be substantial challenges at every step of the process as recovery, transportation, and disposal are not fully recovered.”
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