No one involved in aggressive debt collection attempts enjoys the process. Whether you are the one contacting the borrower to collect or the borrower receiving the communications, most would prefer not to be involved. Last week American Banker published an article outlining the reasons why the CFPB needs to regulate debt collection. It was suggested that the CFPB should define the appropriate communication channels and the frequency of communications to borrowers. Communication guidelines along with consumer disclosures are all areas that could be covered by regulation. It is unknown if the CFPB will become involved based on American Banker’s recommendation, but there are already regulations in place around fair debt collection practices, and there is no reason to assume that these will not expand.
I’m sure there aren’t many financial institutions that would be excited about increased regulation. While most would agree there are some debt collection practices–that even though legal–aren’t ideal for the borrower, the premise of collecting debt is very important to financial institutions. Rather than advising on debt collection practices, I would recommend a source of loan volume that won’t lead to the need for aggressive collection attempts. The MyLoans program provides a high volume of consumer loans but due to the relationship between the financial institution and medical provider, the financial institution never has to go after the borrower in default situations. Avoid the unpleasant debt collection processes and potentially increasing regulations by utilizing the MyLoans program to increase loan volume.
By providing patients with fast access to medical loans at a fair and unchanging interest rate, the MyLoans™ software by Epic River enables financial institutions to ease the financial stress of health care through collaboration with medical providers. Not only can medical providers offer patient financing for medical care needs, but doctors and hospitals alike can finally get immediate funding of their patient’s outstanding balances. Additionally, financial institutions gain new customers and interest income with little administrative overhead in exchange for servicing the loan. For more information, visit www.myloans.co.
About Epic River, LLC
Since its inception in 2005, Epic River has been providing high quality software services aimed at solving process-intensive problems. With a focus on high quality and rapid delivery, Epic River’s methodology accelerates the process of innovation while keeping a firm grasp on the business case behind the application, enabling our partners to grow their market leadership. The company’s unique approach to the agile methodology and user experience ensures both parties work closely together every step of the way. Whether you’re looking to expand into new technologies or markets, need a custom internal tool, assistance with architecture, or simply need someone you can trust to make technology decisions, Epic River is at your service. For more information, visit www.epicriver.com.