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.
Your client will be more receptive to a text that notifies them of their options. Textedly offers a dashboard that makes it simple to customize your SMS alerts for all outstanding payments.
Join Textedly's free trial and start using our user-friendly platform to send payment due texts!