Collection agency software: what to look for

Written by: Steven Bryan

When collectors discuss outstanding debts with someone over the phone, the conversation might get a little heated, especially in the current economy. Collection agency software can, however, take some of the unpleasantness out of the collection process for both your agent and the person on the other end of the telephone.

Types of software

Not all debts fall into the same category, so you need to find collection software that manages the types of bills and debtors that your collectors will handle on a daily basis:

Medical debts: When collecting for hospitals and doctors offices, it's essential that your collectors stay compliant with the latest government regulations such as HIPAA (Health Insurance Portability and Accountability Act). If your agency handles a large amount of medical debt, look for collection agency software geared specifically for the health industry.

Child support payments: Most divorces do not end cleanly which can lead to one parent not making court-ordered child support payments. If your collection agency specializes in getting delinquent moms and dads up to date on their payments, shop around for software packages that help track down the parent and collect when they fall behind on their obligations.

College loans: In a CNN report filed in October 2008, Chris Lang of debt collection agency ConServe estimated that defaulted student loans currently total $60 billion. These types of debts can become a good revenue stream for your agency, especially with a software package that helps your firm stay compliant with the Family Education Rights and Privacy Act (FERPA).

Features of collection agency software

To keep revenues high, collectors have to make so many phone calls per shift, which is where collection agency software really comes in handy. As you shop around for the right software packages, keep some of these useful features in mind:

• Auto and multiple-dialer: Busy signals and disconnected numbers slow your collectors down. Software with these types of dialers can automatically dial phone numbers and connect your agents only when a live voice answers the phone.
• Account history: A good collection agency software package will have a customer's account history on the collector's screen before the call begins.
• Payment plan processing: Once a customer agrees to make regular payments on a debt, this feature will track payments and automatically send out reminder letters if an installment is late.
• Call blending: When a customer calls back, your collection agency software should retrieve their account history notes and payment records for the agent handling this account.

Depending on the type of debts that your agency handles, you may have to purchase a few different collection agency programs or work directly with a vendor who can customize a package that suits your needs. BuyerZone can match you to multiple collection agencies so you can determine which software package is the best fit. Submit a free request for collection agency services price quotes today.

Resources used for this article:
New York Times, "When Collection Software Runs, Debtors Can't Hide"
CNN.com, "Student Loan Fugitives"