It’s not how you skin the rabbit, it’s how the rabbits fur grows back.

Well first of all I do not suggest you try to skin a rabbit thats alive so don’t send me letters. But there some meaning in this statement like many folk sayings across the US. If you are in the debt collection industry this relates to your business like this.

The biggest change in the debt collection industry over the last few years are the strategies used to collect the money. In the past the industry had 2 clear channels to get payments from, mail and phone so they sent letters and made phone calls. Well anyone in the industry today knows that letters do not collect near the numbers that did even 10 years ago and phone calls have so many compliance issues its hard to justify making that outbound call to a debtor.

So we have created more ways or channels for the consumer to pay. We have changed how we skin the rabbit because we need a sustainable business model. The debt collection industry has adopted self cure options to allow the rabbit to skin itself. So with a website that allows the consumer to go online 24/7 and pay their bill without any human interaction has allowed the consumer to skin themselves. And if we have done a good job they will continue to enjoy the experience of self skinning and will do it again and again. The self skinning allows the consumer to grow back the fur and then come back again for a trim without all the phone calls and letters.

So now if you want to be the most successful you can be you must perfect your self cure strategies so the consumer returns or so the consumer completes the transaction. Your payment site and all leading up that first consumer log in have to all be the best strategies possible these days as you may only get one chance to get this consumer to self cure.

Lighthouse Consulting created self cure and has the industry embrace it. If your interested in how to build a best rabbit self skinner in the industry you must talk to Lighthouse Consulting. Call Phil at 904-687-1687 now.

Lighthouse Consulting Goes International

PRESS RELEASE June 1, 2017

Phillip W. Duff, President and Chief Executive Officer of Lighthouse Consulting, is pleased to announce the appointment of Karl Graham as Vice President of Caribbean Operations.

Mr. Graham has a long history of Call Center success in the United States and the Caribbean having worked in executive positions for major US Fortune 500 companies and also working in Jamaica for the last 10 years as Vice President to the Caribbean’s largest call center.

Mr. Graham will be tasked with managing call centers and creating partner relationships for the clients of Lighthouse Consulting. Mr. Phillip W. Duff the CEO of Lighthouse Consulting stated “As our clients are more and more using the options provided by Lighthouse Consulting we saw the need for quality management and I was able to convince Karl to come on board.”

Mr. Graham stated “The offer from Mr. Duff to help Lighthouse Consulting manage their seats in Jamaica and the rest of the Caribbean was one I did not have to consider very long. This is a great opportunity for me, Lighthouse Consulting, their clients and all the Caribbean people we will bring quality jobs to.”

Lighthouse Consulting would like to announce the opening of its new International offices in Jamaica, West Indies. In an effort to meet its client’s needs, Lighthouse has opened offices that will handle all Caribbean operations and allow Lighthouse to better serve its International clients. Business offices in both Kingston and Montego Bay, Jamaica have been recently opened. Lighthouse Consulting is helping International companies to reduce labor rates and increase levels liquidation. The initial interest has been from ARM companies, debt buyers and creditors but Lighthouse Consulting is also servicing first party clients.

Lighthouse Consulting provides near shore consulting and seat management for its clients looking for reduced labor costs. By managing the island labor as a value added service for its clients the ROI stays high and the clients stay satisfied. As profits get squeezed in the US near shore labor becomes a better option for many businesses but managing the process is a learning curve straightened by Lighthouse Consulting and it’s near shore operations.

Self pay healthcare accounts should be self pay collection accounts. Your how to guide to self cure.

As the world of collections changes and healthcare has taken over as the primary business line over credit cards the way we do collections has changed also. Self Pay healthcare is defined as “Selfpaying is a term used to describe someone who choose to pay for their treatment directly rather than using private health insurance. It is an option if you don’t want to pay a monthly premium, have a chronic or pre-existing condition or fall within an insurer’s list of exclusions.” Here is your 3 step guide to make those accounts “self cure”.

Self cure is defined by me as “communication channels that allow the consumer to pay or cure their debt online or by use of an IVR.” So how do we get the self pay patients to self cure? Here are three steps to drive payments to those self cure channels.

The first step is to get the technology in place. You will need a great payment site and an IVR tree. Not just any old technology, not the cheapest pay site either. You need the site to be very easy to use and to drive the consumer to make that payment now. This site must be easy to authenticate as well as easy to navigate. The site should collect opt ins and provide all the proper compliance. But most of all the site needs to drive the consumer to pay.

An IVR needs to be in place for the consumers who are less tech savvy or just prefer to use the phone. This system also needs to be easy to use and provide all the opt ins and compliance as well.

Step two is to drive the consumer to the technology. This can be done from several channels such as letters, phone calls, text messaging, emails and more. Just because you have the technology in place does not insure success as you must get the consumer to interact with the technology to get paid. How you use the channels to drive that interaction is very important. The message must be clear and the channel must be open and easy to navigate. This is where most companies fail. They think that just because they put the pay site URL on their letters thats all they need to do. Wrong! This is now direct marketing not debt collection, the message needs to be clear and friendly, like a Billy Mays ad for Oxi Clean.

The last step is to keep improving the channels and technology. In order to do this you will need lots more technology to track the current technology. Google Analytics will help but you will need to be able to attribute each online payment to a particular channel. Did Jane Doe pay her bill online because of the letter she received, the email, the voice mail drop or was it from your hold music at the 800 number after-hours?

As you can begin to see trends in consumer behaviors to your channels you can do some A/B testing with slightly different messages to see what is most effective.

So the conclusion is you need the best technology and the best channels to be the best at self cure. Since you have just one chance at this call an expert to help you get it set up. Lighthouse Consulting has worked with many companies to set up self cure programs, we know more about this subject and the technology that anyone. Give us a call to get some guidance when setting up or improving your self cure process.

Your clients reputation is at stake! How do you protect it?

Online reputation is everything today. No-one really ask live people for references any more they look at various sites online to see reviews and complaints. Ripoffreport.com and pissedconsumer.com as well as Google.com are the new reference providers to the web save consumer. The problem is when you as a collection provider get a complaint in most cases the original creditor is named in the content of the complaint. They may be complaining about what your agent did or did not do but the consumer relates it as ABC collections who is collecting my Oak Hospital bill. How do you protect your client as well as yourself? I’ll show you.

Online reputation management is not new but it is new to debt collections, here is how it works. Lighthouse Consulting aggregates your good and bad consumer reviews from over 100 websites like Facebook, BBB, Twitter, Pissed Consumer and Google so your company can easily monitor what your customers are saying about you — in real-time!

You can hear every word stated about your business on Social media. Lighthouse Reputation Beacon is a service that automatically sends a review request to your company or the CEO’s cell phone, scoring new reviews for your business directly on Google and Facebook. Imagine a collection agency asking for consumer reviews, thats new! It will make your agency stand out.

Google your company right now, I’ll wait…… and if its indexed by google you’ll see google reviews which you can click on and see whats posted about your company. Most of you have never done this.

Lighthouse Reputation Beacon aggregates your reviews from top review sites. See what consumers are saying about your agency or law firm, in real-time.

With Lighthouse Reputation Beacon, your business can manage negative reviews with easy-to-use tools to address customer feedback quickly.  Your companies great reviews are collected from major sites are indexed by search engines for higher search ranking.

Watch a video here https://youtu.be/KrUNnJLocUk or Contact Phillip W. Duff at phil@lighthouseconsultinginc.com for more info

Maybe You Can Join Me In Cleaning Up The Collection Industries Online Reputation

Lighthouse Consulting wants every collection provider to make an effort to not only clean up their online reputation but actually create good reviews. And best of all we have a cost efficient way to do it. 

There are two parts to reputation management the first is to quickly respond to and negative reviews and second to create positive reviews. Lighthouse Consulting created a service that aggregates your good and bad consumer reviews from over 100 websites like Facebook, BBB, Twitter, Pissed Consumer and Google so your company can easily monitor what your customers are saying about you — in real-time!

You can hear every word stated about your business on Social media. Lighthouse Reputation Beacon is a service that automatically sends a review request to your company or the CEO’s cell phone, scoring new reviews for your business directly on Google and Facebook.

Google your company right now, I’ll wait…… and if its indexed by google you’ll see google reviews which you can click on and see whats posted about your company. Most of you have never done this. You will see something like this:

Lighthouse Reputation Beacon aggregates your reviews from top review sites. See what consumers are saying about your agency or law firm, in real-time.

With Lighthouse Reputation Beacon, your business can manage negative reviews with easy-to-use tools to address customer feedback quickly.  Your companies great reviews are collected from major sites are indexed by search engines for higher search ranking. And we can show you how to request and collect more positive reviews.

This service is priced less than $300 monthly! 

read more https://www.lighthouseconsultinginc.com/do-you-want-to-control-your-companies-online-reputation-on-all-the-top-consumer-reviewcomplaint-websites/ or Contact Phillip W. Duff at phil@lighthouseconsultinginc.com

Q: Why are you holding your company back? A: Its your limitations, the ones you set for yourself and your staff.

Where did you get these limitations from? 

Unfortunately you were taught these limitations by your bosses, the industry and your even your mentors. From the first day you entered the industry people told you what you can’t do or what was not allowed by regulations and seldom have they told you WHAT TO DO.

And there is a deeper layer here also, you have taught all the staff that work for you where the ceiling is. By your actions and reactions to suggestions and new ideas you have stifled the staff with your limitations. In fact you have ingrained them with all the same faults you have. If your successful you have likely done a great job at your brainwashing your staff to see the ceiling.

But aren’t boundaries a good thing? 

Yes but not ceilings. This is not a boundary issue its a issue that the decisions you are making are creating a ceiling that you cannot break through because you will not let yourself do so. You have created a false sense of well being knowing that you cannot pierce the ceiling and since you bump up against it often you must be doing a great job, but no.

Just because you are hitting the limitations you created for yourself and your staff does not mean anything but that. You have created and installed limitations that are hindering new ideas and strategies and its now a issue.

How do I break thru the ceiling? 

Find a better mentor. There are many ways to learn new behaviors but doing it with the help of an industry veteran that understands how to break through ceilings will be the best route. See you have to remember that you taught all the people that work for you where the ceiling is and they also believe they can’t pierce the top either. So changing the behavior of the company is a culture change that requires a professional.

How can someone else change the culture in my business? 

Professional consultants like myself have learned that culture change is what consulting is all about. Its not really about the changes in process or procedures its a change in the mindset of the company. I have told this story many times but my first consulting job in 2000 scared me to death, I was not sure if I was going to have better collection strategies than they were using. As it turned out the improvements were the easy part, they were staring me in the face, the idea of how to tell the owner that his business practices suck was the hard part.

I learned that day that culture change, from the CEO down is what consulting is all about. And it was about how to change the mentality of the company that made it work not the actual process and procedures that I suggested changing. The processes made the company more efficient and profitable but the change in culture was what made it grow and break through the ceilings it created for itself.

If you have created ceilings that are hindering you today give me a call.

Did the birth of the “consumer” and the death of the “debtor” kill the debt collection industry?

As the debt collection industry has tried to be more consumer friendly we changed our vocabulary from “debtor” to “consumer”. How has that also changed the industries mindset? Is it a good thing?

I think not.

It was hard for me to change my vocabulary a couple years ago but it was willingly I did so. As the market started using the word consumer over the word debtor it seemed appropriate. But the longer this has been in effect the more and more I see it affecting the mindset of collectors, managers and owners in a negative way. Consumer lawyers (maybe we should call them debtor lawyers) are why we changed our tune but I think we should have kept the word debtor, its not a bad word.

Somehow the word debtor became a bad word and I am not sure why?

Wikipedia defines a debtor as “If X borrowed money from his/her bank, X is the debtor and the bank is the creditor. If X puts money in the bank, X is the creditor and the bank is the debtor.” and defines a consumer as “The consumer is the one who pays to consume goods and services produced.”

If this is the definition to both words they are debtors not consumers, consumers “pay to consume”,

So why did a whole industry change its vocabulary?  

The truth is we did it from pressure we created on ourselves as an industry. We thought its would make us look more consumer friendly in the eyes of regulators, clients and potential clients. But was this a good thing? I think it has gotten too many collectors and even managers in a mid set that the debtor is right and the collection strategy is the bad factor.

The truth is that debt collection has been getting more and more consumer friendly since I began collecting in 1979. But it has gotten to a high point in 2016 in my opinion. Debt collection has changed to accommodate the consumers’ habits by moving to self-cure websites and IVR systems.

The birth of self-cure 

The birth of debtors curing their debt online with no human interaction is a positive result of the consumer mentality of debt collection. It has allowed agencies and law firms to reduce its compliance exposure and collection expenses by letting the debtor pay online. Most debtors do not really desire to talk to a debt collector when it comes time to pay they just want to make the transaction online. So the use of a payment site is the obvious answer and a best thing to come from the consumer friendly era created by consumer attorneys.

Now what? 

I think as an industry we need to remember that that are both debtors and consumers. Actually our job as an industry is to turn them from debtors into consumers. We have to treat them like consumers but remember that they are debtors till they pay the debt and they need to be handled like debtors.

The fact that our industry has made the effort to allow the debtors to self-cure by creating elaborate payment sites shows our ability to adapt to the consumer model but we still have to remember that most debtors need help to pay their obligations. They need financial counseling, just the push a call makes or they need a payment arrangement that the website cannot approve for them.

Lets remember they are debtors and need our help to pay their bills and become consumers.

Re; My collection staff sucks!

Since 2007 I have seen the decline of the skill set of debt collectors in the US and it is at an all time low today. As a consultant to the ARM industry I see this daily and I have several ways to deal with the problem.

When the economy was really pumping in 2005-2007 or so the debt collection industry was at a high point and debt collection was easy. Debtors, now called consumers had the availability to get loans so money was flowing in debt collection, it was just financial counseling. After 2007 and the economy fell the ability of the debtor to get a loan was gone and so was the ability to collect money from debtors.

Along with that change in economy came a stoppage of training and development in the ARM industry which has continued until recently. Back when the money was easy to collect, training was not a big deal, just get someone on the phone and you had collection results. Now collections is much harder due to not only changes in the financial landscape in the US but in compliance costs as well.

With the birth of the “consumer” and the death of the “debtor” we have also changed the way we do business. As the ARM industry started using the term consumer over debtor a change in mentality also was created. The truth is “They are consumers.” So as that mentality changed so did the mentality of the average collection agent. But we did not provide new tools to collect from the new consumers. Training and development was and is still a last resort not a daily task. Managers would rather fire and hire than train and develop. Why? Because they don’t know how to train, that skill set is gone in todays C level managers.

So how do you solve this problem? You already know the answer its training and development but how do you do that is the real question. Most managers do not have a good training program. Most agencies I see just sit the new staff member next to their best collector to be trained. This is wrong in so many ways.

I have developed an extensive training  program that I can facilitate or help my client facilitate that starts with what is a debt? and ends with negotiation skills. It is very extensive on everything from credit reporting to an explanation of each bankruptcy type. This is how I solve the problem.

My second recommendation is to move some staff to Jamaica. The results of collectors in Jamaica is 90-110% of those in the US. The staff is much more eager to come to work and be taught and work for 1/3 the wages. I have helped several agencies set up in Montego Bay and in every instance the staff there is out performing the US collectors.

Either way you go you have to embrace the fact your staff must be trained and then they must be slowly developed into better staff. Its a big commitment and if you need a road map or some help just give me a call.

Listen long enough and you will hear a solution

Owners and managers of Collection agencies are just like the collectors that work for them and in most cases they got it honestly. They just don’t listen. When I do collector training 50% of the training is listening skills I teach the collector to listen long enough to get some offer of payment. Owners and managers who probably started as debt collectors have similar issues regarding improvements to the collection process.

As a consultant I am constantly sending emails like this or writing blogs that provide Solutions or at least hint at the solutions to today’s problems in the ARM industry. But just like the collector that doesn’t listen long enough to get a commitment of payment which will start the negotiation process the owners think they already have all the answers and turn their minds off two other solutions. When I started consulting 15 years ago I worried that finding better solutions would be difficult I quickly learned that what is difficult is getting the persons by-in to a new process. Most people do not like change and therefore just ignore improvements.

The face of the debt collection industry it Is changing and becoming much more electronic. As this change occurs everyone in the industry must embrace those changes and be willing to make the proper improvements. As we move to a self cure collection strategy how we use our live agents becomes even more important. More and more consumers will choose to self cure as the electronic options become more consumer friendly and available. Self cure liquidation rates will only be driven by the strategies used to drive consumers to that website or IVR. Once the consumer is logged in to your payment portal only the strength of your portal Will collect the bill.

The biggest gains in liquidation rates Will be driven by the inbound and outbound call strategies. As the self cure options reduce the number of inbound and outbound calls the quality of those calls becomes more important exponentially. Owners need to listen to experts like myself who are able to provide solutions that can blend self cure with call strategies that maximize both the timing of the contact, the type of contact and the strategy behind that contact method.

Emails, Texting, IVR’s, Manual calls, Letters, Payment sites and inbound calls all need to be blended not only for a effectiveness but also for compliance. As we move to a multichannel collection process including all of the methods listed above we will need to track Communications not only for compliance, Best practices and the results we will also need to understand what drove the consumer to pay. Was it the letter that drove them to the payment site, or was it the message they heard while on hold at your call center? We need to be able to track all of those consumer interactions to be able to create best practices.

If you ever heard what I am saying and you are ready to hear more I would love to talk to you. Please call me at 904-687-1687 to discuss.

Phillip W. Duff

CEO Lighthouse Consulting

My thoughts and observations from the recent DBA conference

Well it was the 20th conference for the debt buyers and it was well attended and was upbeat for a change. As I usually do here is my thoughts and observations firm the conference.

People

Well the players are changing along with the name of the association. As new debt buyers emerge the look of the DBA will also evolve into something that can survive in today debt purchase marketplace. The attitude of the people attending was much more upbeat that the last few years and this I will attribute to Trump.

Many of the people I have talked to during the conference have confirmed that they are much more optimistic than past years just due to the change in Presidents. People who I know had gotten out of the business and not attended the conference recently were back with smiles.

New

There was lots of talking about changes in the industry like Discover requiring partners to take payments away form the call recording devices to reduce the possibility of that call recording system being hacked and credit card info being available in the recordings. Patient financing for the healthcare agencies and buyers in the new thing as well. I meet a guy who is buying medical debt and forgiving it. The company is a charity and takes donations.

There was lots of talk about self cure processes and near shore shops. Both vendors, agencies and debt buyers are now moving processes and agents to near shore call centers with Jamaica being the prime location.

Vendors

The overall vendor attendance was low but the main players were all there. Stratics had the oversized booth that stuck out like a red headed step child. This proves there is a war for clients coming in the ringless voice mail segment currently owed by Vo Apps. This contact method for cell phones is defiantly the cheapest method to reach cell phones.

The vendors all seemed to be busy during the cocktail hours and lunches but not much traffic otherwise.

Conclusions

The debt purchase industry is reinventing itself and the people involved are positive it will work. The old school debt buyers are retiring and moving on to their next career or golf game. The vendors are all suffering as the overall volume of business is down 20%. The industry will continue to embrace technology and reduced labor costs to collect money and the industry will evolve to meet the challenges.