Syracuse, N.Y. – October 22, 2020 – As the pandemic adds financial strain to Americans who were already struggling to pay their bills on time, those contacted by debt collectors face heightened stress.
A new survey from Capital Collections Management (CCM) reveals that 71% of Americans who have been behind on bills in the last two years have been contacted by the original creditor or collection agency. Of those, more than half (58%) had a negative experience. “Stress” was one of the top associations respondents said they have with the term “collection agency.”
“Companies that want to recoup their lost funds need to take a better approach to collections. Successful recovery isn’t contingent on aggressive pursuit and demanding communications, but by taking the time to listen to consumers’ financial challenges and help them find a way to repayment,” said Jacob Corlyon, Co-Founder and CEO of Capital Collection Management and president of the New York State Collectors Association.
Unfortunately, the data shows that not enough businesses are taking a partnership approach to collections with consumers. Of those surveyed, 41% said creditors were not understanding of their situation and did not provide alternative repayment solutions.
Of those surveyed, 70% said they have concerns about being able to pay their bills on time in the next three months, as many face job losses and pay cuts due to the pandemic. And nearly half (45%) said they have less than $1,000 in an emergency fund.
“Especially in today’s economy, businesses need to shift their strategy and find the right partner to help their customers pay off their debt. At CCM, we’ve gained success by approaching collections with compassion for the hardships people are facing. Not only do we help our clients recover lost revenue, we provide educational tools to help their customers better understand their finances, putting them on a path to financial success,” said Corlyon.
For key findings on the financial impact the pandemic has caused and strategies for how businesses can recover revenue, visit https://lp.capitalcollect.com/ccm-financial-impact-survey/.
About Capital Collection Management
Capital Collection Management (CCM) provides modern, technology-driven collections, debt purchasing, and litigation services for enterprises that need engagement with empathy, experience with compliance, and excellence in debt recovery. Leveraging state-of-the-art analytics and machine learning combined with a service-focused approach, CCM helps organizations from a variety of industries protect their brands and improve their bottom lines. To learn more, visit www.capitalcollect.com and follow us on LinkedIn.