5 key compliance questions to ask before outsourcing collections

Making the decision to outsource some or all of your financial institution’s collections work is no easy task. Even when you recognize that your internal staff does not have the time, resources, or ability to efficiently keep delinquencies low, it can still be difficult to trust a vendor, particularly in this era of data breaches and regulatory scrutiny.

Sometimes, after weighing all of your options, outsourcing collections may be the best business decision. In many cases, vendors who specialize in collections have the staff and resources to dedicate 100% of their time to addressing your delinquent accounts—oftentimes at a less expensive rate than your team can accomplish in-house.

If your financial institution decides to work with a vendor for your collections efforts, it’s vitally important to ensure your partners perform at an optimal level. To evaluate whether your outsourced partner is performing at a high level, it’s wise to understand their compliance procedures and establish agreed upon best practices for the work they do on your behalf.

If you’ve decided to take the next step and work with an outsourced collections provider, here are the five key compliance questions you should ask before signing on the dotted line:


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