Unsubstantiated cash flow can result in delayed payments and loss of overhead. Text messaging for outstanding debt collection may drive payments significantly higher than past-due mail or emails. Winning against other channels, 81% of the country uses SMS to communicate every day, making SMS a strategic channel to notify late payers of past due bills.
TRY US FREEDebt collection SMS texts are automated text messages that help companies and debt collectors communicate past due balances and outstanding payment reminders. When a client is past due on a payment, sending them a text is often the most efficient way to contact them. These texts may be educational about their account and then grow to become a fee reminder text if action is not taken. Texting is convincingly cost effective when compared to sunken costs if no payment is made.
Be sure to obtain explicit consent from your clients/customers to send these text messages, and only send texts to those who have granted consent. The FTC takes debt collection very seriously and even established the Fair Debt Collection Practices Act (FDCPA) to protect individuals. There are a series of rules that debt collectors must abide by. Review the FDCPA before launching an outstanding debt reminder SMS campaign to make sure you're complaint with the latest outstanding debt collection practices.
Missed payments and credit card delinquencies on the rise, so debt collectors need to know the dos and don'ts of debt collection more than ever. Debt collection is necessary. Before you get started collecting debt, get to know debt collection practices for texting outstanding balances or using other methods.
Occasionally missed payments happen for the simple reason the customer forgot the due date or was under the impression they had paid the bill. In these cases, a simple reminder will do the trick and the late payer will typically resolve the issue the same day or week. All other cases often lead to debt collection. Using traditional methods, collectors send notice after notice without any response. The notices fall on deaf ears after a while. Your client has tossed them into the trash without a second thought.
For that reason, debt collectors use texts to bring in outstanding payments. SMS debt collection software, like Textedly, allows you to segment your late payers, increase visibility on past due reminders, provide clear messaging, among a multitude of benefits.
A Timeline of SMS Collection Debt Templates
The basis of this SMS collection method is to send detailed information based on what they owe and how you will follow up in the future using automated collection messages.
