Debt collection software

Helene Mueller
eCollect support team

Debt collection software represents the whole debt recovery program’s data set and operative plans, including the API (Application Programming Interface). Such software can also contain debt analyser, report-printing functions, etc. The debt collection software gathers all debtors’ profiles in one place, consisting of their address, credit card information, current balance and a thorough report about subject of debt’s delinquent payments: amount, age of debt, etc. Its main role and function is the integration process of exchanging information between creditor and DCA (about debtors’ profiles, their location, contact details, additional information about their debts, etc.). Such process of sharing data is also known as BPO or business process outsourcing. Debt recovery software and API can be implemented for collecting both commercial (business-to-business) and consumer (individual) charge-off debts. Such software is mostly used by third-parties, i.e. debt collection agencies, which recover delinquent amounts on behalf of the original lender.

Debt collection software and API-usage

Typically the software’s role is to simplify the entire debt collection and management proceedings and to share database content between the first-party (creditor) and the third-party (debt recovery agency). Collection debt software is used mainly by debt collection agencies in order to connect and enter creditor’s files system and to obtain important information about lender’s debtor. Some DCS (debt collection software) programs can analyse bad debts and even arrange them according to their age, amount, importance, etc.

Defaults recovery software is used when a creditor hires a debt recovery agency to collect delinquent accounts on behalf of the original lender. The API allows exchange of information between the DCA (Debt Collection Agency) and the creditor; and more specifically, between their databases. Using a debt recovery software and API grants connection and entry to lender’s data and information, making the subjects of debt’s profiles visible and accessible for the collection agency. After the instalment of the API in creditor’s system, the collection process can begin.

The API is wide-known as S2S, “software-to-software”, interface. Its name derives from its functions- the API implements connection and collaboration between collection agency’s and creditor’s software. It also represents a full set of instructions and standardised functions for accessing another software application. Usually it is in a form of database or a library that includes specifications for debtors and their debt’s profiles. Usually the debt collection software is paid, but more and more DCAs start offering its instalment to creditor’s system for free.

Advantages of debt collection software

DCS and API have various advantages. In the first place, such interface as the API facilitates the whole transaction of information between creditor and collection agency. A DCS also grants full access to the DCA, and also to the original lender. Such software is duplex or “two-way” opened and the creditor can trace and follow the whole debt recovery process. Another benefit from using debt recovery software is that the API is time and resource-saving. Instead of copying all debtors profile’s information by hand, the API interacts with creditor’s database and provides access to his operational systems. It systematises the profiles and classifies debts’ cases and personal information.

Even if the creditor doesn’t have such collection software, most debt recovery agencies provide professional programmers, who will install API and maintain it during the debt collection process, which means continual technical support for the creditor. Furthermore debt collection software and API provide reliable data security, executed by special data encryption, which is, by far, the most effective way to protect creditor’s private database and information.

Collection debt software and API are usually simplified and easy to use. They have special tutorials and system trainings for operating with such specialised software. The main idea of debt collection software and its API is to grant access to a DCA to perform functions (in this case- debt collection) that the creditor is not able or not allowed to execute.

Some debt recovery software programs even offer different strategies for debt recovery and suggest different collection methods depending on debtor’s personal issue. Debt collection software can even provide different payment plans to be offered to debtors, according to their monthly wage, credit history, etc.

Using API and debt recovery software is also vital for successful skip tracing process, which generally interprets various techniques used to locate the debtors. After the creditor provides detailed information to the DCA about the debtor via the DCS, the tracing proceedings will become much more facilitated. Easier and more accurate tracing process means less mistakes and faster start- up communication with the subject of debt, which will generate faster and more successful debt collection.

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