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Is anyone using email technology yet to replace collections letters?


http://www.traceadebt.com

Email chasing letters do seem to be the way forward. However, I don't think they will ever fully replace letters sent by post.

I'm with Emma here, I am still a little reluctant to replace formal letters of demand with emailed versions. I don't think they have the same impact.

There are a miriad of companies out there now offering e mail invoices, e mail statments, talking statements by e mail, statements where the invoice detail is embedded for reference. E mail chasing letters that talk or do not Etc. Etc. It is nothing new it has been around for a while. Has it taken over from the good old fashioned letter? No not yet. Will it? No not yet.

The main reason is that the vast majority of businesses (particularly in certain trades) do not have a computer and do not want one. I know because we tried it two years ago and we were amazed at how many businesses could not supply a valid e mail address that could be guaranteed to be around in 3 months time.

I have no doubt that given time electronic chasing will be the way, just not for the next 5 years at least!

Ron

If anyone is using email chasing letters it would be interesting to know how effective you find them. As Ron rightly comments there are still a fair few companies out there that don't use electronic systems as much as some of us and may never use them (i.e some religious groups)

www.traceadebt.com ----

Of course this technology does bring a marked difference to sending a letter

A. A confirmation that the email has been opened, which can not be done with letters without extra expense.
B. A direct link to a payment portal for immediate payment.
c. The email can be password protected.
D. Cost reduction , email on this type of platform are typically around half pence per email.
E.Hopefully one could reduce ones payment terms as the email is delivered instantly not up to a week later with tradional second class post.
F. For consumer applications the technology can be intergrated with a telecoms platform so that when an email is opened it generates a outbound call to the client for collections activity. ( very big brother )

Yes I take on board that some people do not use email but in this day and age it is few and far between. I am sure when the letter was introduced many people did not have letter boxes!!!!

I oppose the thought made here that those businesses that do not use electronic systems is few and far between.

When we researched this not long ago we hit 97,000 account holders and well over a half of the businesses did not have electronic systems. I am talking about the majority of companies that make up the numbers in our business fraternity such as plumber, builders, retailers, electricians, landlords, architects, Etc.Etc. People are still buying fax machines for heavens sake !!

Ron

Totally agree Ron. We work with construction companies and many of them don't have email etc.

We have also found that even if the company has internet access, certain departments within the company don't have access, so I suppose it depends who you want to open the email.

Are you better to send a letter by post addressed to the correct person, or send an email to a general address (info@companyname.co.uk) and rely on it being passed to the correct person?

I also agree with Tracedebt, knowing what has happened to the email gives you a great insight, but how well a link to a payment portal would work depends on the security settings the company has in place and do you run the risk of the email going straight into a spam / junk folder?

I can see the pros and cons of both. An email chasing letter would work well when sent to me but wouldn't work so well if you sent it to a builder that only reads their emails every so often.

Correspondence should be individual and if you hold enough information about a debtor you should be able to work out the most effective and efficient way communicating with them.

I do feel that no matter how far technology takes us we should not under estimate the results of posting a well written chasing letter.

Exactly what a good credit control department should be doing. Using whatever is available to them to collect money in the best way possible for their customers. If that means using several ways then so be it. Exactly the same as phoning for payment. You wouldnt speak the same way to everyone would you, you would modify your call dependant upon who you were speaking to.

Ron

www.telsolutions.co.uk have been providing email collection services for three years that is now fully integrated into a voice, email and SMS platform.

Emails have more impact and open rates if they are triggered after a response to a outbound call or SMS text message that is now integrated into the same unified platform.
All the emails have full reporting and tracking to show email bounces, unique open rates and click throughs.

Rather than have to create campaigns based on letters, calls or emails, records can be loaded with all available contact details into the on-line platform and scenarios created to use this data either in cascade or by set algorithms.

Dan

Quote: traceadebt.com
Is anyone using email technology yet to replace collections letters?


http://www.traceadebt.com

E mails do not do it for me (yet) By the way have you had your e mail invoice yet for the marketing charge on this forum?

No doubt one day they will or at least something similar. Too many companies are low tech for it to work in the wider scheme of things. Bookmark for junk and you dont even see it. At least with a letter you have to read it before you throw it in the bin!!

We have recently carried out some research on our chasing letters and chasing emails. They both carry a 90% success rate. Our chasing letters are still more popular with our customers then chasing emails.

Don - our collections are B2B so perhaps business debtors tend to take their contractual obligations a little more seriously than consumers.

Don or whoever you are. Many of us on this site are commercial credit people dealing with debts owed by businesses NOT consumers, so I am afraid you are barking up the wrong tree. None of us would condone the actions of rogue DCA's who act outside the law, nor would we condone the actions of people who deliberately enter in to credit agreements with no intention of making any repayments (I am sure you will agree that this is fraud) If you want to have a reasoned debate then please do so but if not please find a more constructive use of your time & allow us to continue with sensible industry debate.

Quote: Don Sidwell

Quote: Mr Ritchie

Quote: Don Sidwell
I did actually state that if they make a payment then it starts the clock all over again.
Then i said, thats why you bully/intimidate them into making that payment so that the clock does restart.
I have said many times, that yes - if you borrow then it should be repaid (if it can be) - ive never said that it shouldnt be.
What my issue is, is with your industry - it has no legal powers whatsoever to recover that money, only the court does (or the original creditor via the court)
There is no reason for the debt collection industry to exist at all in the truth - it just does for the sake of it seemingly lol

Collection agency's exist as companies that lend/sell products etc are specialised in that area...not debt collection. Besides I'm the first to admit its not a fun job to be in so companies would rather pass/sell debt than chase them on their own. + that way if there is any negative publicity its the debt collection agencies that get it, not the original companies (as this would give them a bad consumer image)....

The image of the debt collection industry could not be any worse currently! lol
Anyway - how do you have to be specialised in "debt collection" exactly?
It doesnt take a genuius to send someone a threatening letter saying the forces of hell will be unleashed on them if they dont pay up effectivley...
There's no difference between your industry & a school playground bully at the end of the day.
The only difference is that your given a licence before hand.

if thats how you feel about things would you not be better taking your arguments/complaints to the ombudsman or regulator?? After all its them that dictate what can and cannot be done.....

End of the day it comes down to the simple quote again....Argue it if you may but its pointless.

"If you dont want to have debt or deal with debt collection agencies then do not take take out loans etc or fall behind in payments" Debtors in effect control this - no one else.....

Finished for the day

Good speaking with you Don but you've a far way to go yet

Sorry. You cannot use the police if they are not breaking the law. It is A civil thing.

And do you think the police care? or would come out to the address? that assuming you can actually get them on the phone! I dont think so somehow.

"Lets see, visit the mugging, or the car crash or the debtor seeking to avoid payment and moaning that someone's thumping on his door because he aint paying his debts"

Hmmm, tough call.

Quote: James Carpenter
And do you think the police care? or would come out to the address? that assuming you can actually get them on the phone! I dont think so somehow.

"Lets see, visit the mugging, or the car crash or the debtor seeking to avoid payment and moaning that someone's thumping on his door because he aint paying his debts"

Hmmm, tough call.

Oh most definately - because if the person (the debt collector) doesnt go away, then you have a possible serious situation on your hand - in other words a physical confrontation, then the police would have to be called out to stop that breach of the peace etc...
Anyway - i do laugh at all these debt collectors who before hand think they can simply turn up and ask Mr or Mrs Smnith to pay X amount of money there & then.
What if the person hasnt got the money in the house?
Will you march them to a cashpoint or something? haha lol

Cashpoint? I thought these unfortunate wretches had no money, no credit cards etc. zzzzz poor Don, what a sad deluded man he is.

I must state this because others reading might be under the impression that both Ritch and Don have somehow come to an agreement over statute barred debts.

If a debt is statute barred it can never become unbarred. If a debtor decides to make a payment on a debt which is subject to the Limitations Act this does not mean the creditor has the right of court action on that debt. The debt will still exist, as it always has done, but no court action will be permitted (well the creditor can try but the Limitations Act is a full defence).

If the 6 year limitation period is not up, and the debtor makes a written acknowledgement or payment, then the clock is reset.

You both seem confused on this point and I thought it best to clear it up.