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The concept of Fintech (financial technology) is being welcomed by many Internet finance companies. The real Fintech (financial technology) company uses technology as the overall core driving force and applies technology to finance to improve the efficiency and profit of the company. We focused our attention on the collection of the industry. It seems that the aura of fintech has not been shining here. The collection is embarrassingly talked about in the financial services industry. This seems to be a gray area that no one wants to touch, but it cannot be avoided.
TrueAccord company establishment came from people who had prior bad experiences in the debt collection process. The company brings forth new opportunities in building systems that change the debt collection approach (Outer Join, nd). The company further worked on turning debt collection into an efficient reconciliation and recovery process. The company is revitalizing the debt collection process (Outer Join, nd). The establishment of TrueAccord took place in 2013 in Lenexa, Kansas, among the youngest debt collection agencies in the business. The company brings forth modern debt collection services that integrate digital-first debt collection strategies. is an Internet-thinking debt collection service provider that builds files around debtors and guesses what caused the payment overdue based on the information, so as to provide targeted debt collection services. They use new funds to develop products, build internal audit and compliance capabilities, and open up new markets. Use a more gentle collection method-communicate with debtors via email, text messages, and social media. Currently, TrueAccord manages 1.8 million personal and corporate debts, totaling nearly $1.6 billion. Through TrueAccord, users can negotiate how to resolve their debt burden (if they are in financial trouble) or get a personalized payment plan. Users can request more documents, report bankruptcy, browse on their mobile phones, and get the latest information on debt status.
TrueAccord operates a data-driven collection platform based on machine learning (ML) and digital communications. TrueAccord’s decision engine patent uses machine learning to create personalized, digital-first user experiences that are tailored for each debtor. The platform creates a complex interaction model for each debtor, and uses a cluster engine to compare the debtor with the millions of debtors that pass through the platform. Based on these tens of millions of data points, it predicts the debtor’s response to the frequency, time, channel, and content of the communication.
Debt Collection Procedure in TrueAccord
The debt collection agency uses its automated systems to keep in touch with its clients. The automated machines help TrueAccord adjust payment arrangements and further helping the agency get back on track if they lapse (Prevent Loan Scams, 2021). The company works with different consumers like major banks, direct lenders, and several e-commerce companies. The company communicates with consumers through emails and other online tools. The move enables customers to have several choices in taking control of their debts. The company provides customers with emails or letters about their credit reports (Prevent Loan Scams, 2021). The complaint is usually based on a registration against the company with the Better Business Bureau. TrueAccord usually agrees to customer complaints which sometimes is inevitable (Prevent Loan Scams, 2021). Customers can convey their grievances majorly with the sole intent of getting information on the debt the agency claims.
The other crucial element that TrueAccord customers should consider is information sharing when complaining about the agency’s debt claims. Any information provided by the customer to the agency is vital (Prevent Loan Scams, 2021). The agency can more so use the information against the customer. The cases of incarcerating a customer can emerge when the company decides to take legal actions against the client. The clients further have the right to force TrueAccord to provide disclosure about the dept. The move is suitable for customers who are fully aware of the debt TrueAccord claims (Prevent Loan Scams, 2021). The vents can trigger TrueAccord to provide the customer with a debt validation letter. The company can only cease debt collection efforts if the validation letter is incomplete. The move can further make TrueAccord remove negative information on the customer’s credit report (Prevent Loan Scams, 2021). The validation letter is crucial to the company as it specifies the original creditor and various debt-related elements connecting the customer.
TrueAccord uses the verification letter to prove to the customer the legitimacy of the debt. The latter further exempts TrueAccord from cases of attempting to recover debts from mistaken identity (Prevent Loan Scams, 2021). Besides, TrueAccord has increased the chances of proving that a certain customer has specific amounts of debts. The move emanates from the agencies having in-depth documentations on debt claims. Furthermore, several consumers usually forget debts that are more than a few years (Prevent Loan Scams, 2021). TrueAccord gives room for consumers to negotiate a settlement. The settlement arises if a consumer cannot fully pay the debt at once, calling for payment in installments (Prevent Loan Scams, 2021). The debt collecting agency allows settlement but can only reject them if not satisfied with the amount the consumer proposes.
TrueAccord usually rejects to agree to consumer settlement through a written document. The written letter usually indicates the amount TrueAccord accepts as full settlement (Prevent Loan Scams, 2021). The letter also reflects their promise on reporting consumer account as fully paid to three credit bureaus. The consumer can only pay the debt in the settlement after receiving the TrueAccord settlement letter (Prevent Loan Scams, 2021). TrueAccord, in some cases, nullifies the consumer’s settlement if the agreed-upon settlement is not met. TrueAccord, in some situations, can decide to pursue legal action against debtors. In most scenarios, the case emanates from consumers with large amounts of debt (Prevent Loan Scams, 2021). Besides, TrueAccord can also pursue legal actions against uncooperative consumers in their debt collection efforts. Successful legal actions by TrueAccord give the agency the legality to deduct a consumer’s wages.
Debtor’s Rights against TrueAccord
All consumers have several rights under federal law in dealing with debt collection agencies like TrueAccord. The debtor can apply personal rights under the Fair Debt Collection Practices Act (FDCPA). The laws are crucial to consumers if TrueAccord violates personal rights (Prevent Loan Scams, 2021). The consumer further has the right to force TrueAccord to disclose the legitimacy of their debt. In case TrueAccord violates the consumer’s rights, the debtor has the chance of getting the debt dismissed. The consumer can get TrueAccord’s collection account removed (Prevent Loan Scams, 2021). The consumer further has the right to take necessary actions of bringing a credit law firm. The event stems from scenarios where the consumer receives threats from TrueAccord on taking legal action against the debtor.
Effectiveness of TrueAccord in Debt Collection
Firstly, the debt collecting agency recovers more money compared to several other traditional debt collecting agencies. The effectiveness of TrueAccord to recover more money arises from its integration with technology in debt collection (Sourceforge, n.d). TrueAccord further cooperates with other agencies like banks and credit card issuers to increase its efficiency. Secondly, TrueAccord uses online platforms to conduct all its operations. The move increases the number of people the agency offers its debt collection services. Besides, full integration in the online platform makes the debt collection process by TrueAccord to be easier (Prevent Loan Scams, 2021). Thirdly, TrueAccord gives consumers the right to pay their debts in settlements. The consumer can negotiate with TrueAccord on paying the debt on a favorable settlement. It usually agrees on a certain settlement by writing to its debtors. Lastly, it can resolve to pursue legal actions against uncooperative debtors (Prevent Loan Scams, 2021). Furthermore, it usually takes legal measures against debtors with larger amounts of money.
Cons Facing TrueAccord
The company has faced several complaints of being one of the most aggressive debt collection agencies. The complaints arise from continuous notifications that TrueAccord sends to its debtors (Sourceforge, n.d). In most cases, the company might even send the notifications on the consumer’s credit report requiring an immediate response. Secondly, the digital nature of consumers dealing with TrueAccord complicates the company’s business operation. The limitations arise from consumers alleging that it is hard to communicate with the company. The drawback comes from TrueAccord’s reliance on technology to conduct debt collection (Prevent Loan Scams, 2021). Unlike other agencies, technological involvement by TrueAccord complicates contact with their debtors. Consumers can not directly communicate with the company, and they can only receive a letter from TrueAccord (Prevent Loan Scams, 2021). Attempting to respond to TrueAccord with a phone may not result in anything. The cons arise from TrueAccord’s stance against recommending phone conversations. Furthermore, TrueAccord has in years faced complaints against agreeing to a settlement, then dishonoring it. The company has also had several cases of debt fraudulently.
TrueAccord revitalizes opportunities towards digitizing debt collection. The move comes from the company integrating modern technological approaches in its pursuit of debts from consumers. TrueAccord’s debt collection process comes into fruition significantly due to the company’s effectiveness in debt collection. Furthermore, the company ensures that it obeys the rights of debtors as the federal law stipulates. TrueAccord, just like any debt collection company, faces several limitations in service delivery methods.
Outer Join. (n.d.). TrueAccord: Data analyst. https://outerjoin.us/remote-jobs/data-analyst-at-trueaccord
Prevent Loan Scams. (2021, March 24). TrueAccord. https://www.preventloanscams.org/trueAccord/
SourceForge. (n.d.). TrueAccord. https://sourceforge.net/software/product/TrueAccord/