WILMINGTON, Del. — Phillips & Cohen Associates, Ltd. (PCA), the global leader in deceased account management and debt settlement servicing, with clients in the United States, Canada, United Kingdom, Ireland, Australia, New Zealand, Spain, and Germany, welcomes Janneen Jackson to lead the latest of PCA’s technology launches, The Debt Settlement Registry (powered by SettleNOW).

PCA’s proprietary platform, The Debt Settlement Registry (DSR) provides creditors and debt settlement agencies (DSA’s) access to streamlined and strategic oversight of consistently growing debt settlement portfolios. Powered by SettleNOW, PCA’s settlement offer strategy engine, The DSR is currently integrated with 150+ DSA’s and top industry payment platforms.  Using real-time business intelligence through Tableau, The DSR enhances and streamlines the end-to-end debt settlement process including offers, payments, and letters.

Janneen will lead the introduction of the The Debt Settlement Registry to new and existing clients and partner with DSAs to demonstrate how the DSR will improve their efficiencies, at no cost to them or their consumers. Prior to joining PCA, Janneen served as VP of Operations and VP of Business Relationships at Americor. Her depth of knowledge is highly regarded across the debt settlement industry as a result of the dynamic and steadfast leadership she has consistently shown throughout her nearly 20-year career in the ARM industry.  She also served on the AFCC Creditor Relations Advisory Board and is a current member of Women of Debt Relief.

Jackson commented, “I am so excited to be joining a company that I have always held in such high esteem. I look forward to working with the entire team at Phillips & Cohen Associates and being a part of bringing The Debt Settlement Registry to the market.” 

Adam S. Cohen, Co-Chairman/CEO commented, “The Debt Settlement Registry brings a much-needed innovation to a complex and growing industry. The efficiencies this platform creates for consumers, creditors and debt settlement agencies are significant and we are excited to introduce it to the market. Janneen’s depth of experience and drive for success make her the ideal leader for this launch. We could not be more excited to have her join the team.”

Matthew Saperstein, SVP, Business Development North America, commented, “The Debt Settlement Registry significantly accelerates the much-needed innovation in the debt settlement industry. With Janneen’s proven leadership, we are confident our new and existing clients will benefit greatly, as will their customers.”

About Phillips & Cohen Associates, Ltd.

Phillips & Cohen Associates, Ltd. is a specialty receivable management company providing customized services to creditors in a variety of unique market segments.  Phillips & Cohen Associates, Ltd is domestically headquartered in Wilmington, DE, with additional offices in Colorado and Florida as well as international offices in the UK, Canada, Spain, Germany, and Australia.  For more information about Phillips & Cohen Associates visit www.phillips-cohen.com. PCA provides Equal Employment Opportunity for all individuals regardless of race, color, religion, gender, age, national origin, disability, marital status, sexual orientation, veteran status, genetic information, and any other basis protected by federal, state, or local laws.

CINCINNATI, OH — Members of Unifund’s Legal Department recently partnered with LIFT D.C. in providing an education series for consumers on improving consumers’ financial health.

LIFT D.C. is a national non-profit headquartered in Washington, D.C. whose mission “is to break the cycle of poverty by investing in parents.”  LIFT works with parents to help their families achieve economic mobility through, among other things, education and coaching.

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This summer, Unifund attorneys Trudy Weiss Craig, General Counsel, and Susan Appel, Legal Counsel, along with Unifund paralegal, Heather Richardson, hosted a series of webinars with LIFT consumers. Panel discussions featured videos from Unifund’s Learn and Earn Program, in which Unifund consumers who complete educational sessions earn credit toward their debts.  Topics of discussion included Budgeting and Financial Stress, Debt Reduction and Debt Snowball, Credit and Identity Theft, and Buying versus Renting and Car Buying.  The women also shared resources which LIFT members can consult as they seek to improve their financial situation.

“We were honored to spend time assisting LIFT members on their journey for financial well-being, and to interact with consumers in their efforts to improve their economic situation,” said Trudy Weiss Craig.  “The sessions were followed with well-thought out questions and discussions, and we enjoyed the positive exchange.  We are grateful LIFT offered us this opportunity.”

About Unifund CCR Partners and Unifund CCR, LLC

Founded in 1986, Unifund CCR Partners and Unifund CCR, LLC has been a leading manager and purchaser of distressed consumer receivables. Unifund specializes in managing, servicing, purchasing, and liquidating non-performing judgments and defaulted consumer portfolios from major banks, creditors, originators, financial institutions, and owners of distressed receivables. We believe that our success is interdependent with the well-being of the communities in which our employees live and work and actively partner with multiple charitable organizations each year. Unifund is headquartered in Cincinnati, Ohio.

Banking trade groups are challenging a request for information (RFI) issued by the Consumer Financial Protection Bureau (CFPB) regarding customer service at large financial institutions. In a joint letter dated August 22, the Bank Policy Institute, Consumer Bankers Association, and the American Bankers Association objected to the CFPB’s insinuation that big banks are providing a sub-par customer experience and challenged the CFPB’s authority to regulate customer service.

“Customer service is an important and essential priority for banks. The CFPB’s statements in the RFI unfairly characterize the quality of customer service provided by banks and appear to reflect the CFPB’s pre-determined conclusions that banks do not provide high quality customer service. This approach is unhelpful to consumers … and is likely to confuse them.” The groups cite to recent studies reporting high overall customer satisfaction to support their claim.

The letter takes aim at the CFPB’s authority under the Dodd-Frank Act, noting that it says nothing about customer service or relationship banking and does not “grant the CFPB the authority to dictate, via regulation or otherwise, the type of customer service banks provide or the manner in which they provide service.” Although the CFPB maintains its authority under Section 1034(c) of the Dodd-Frank Act, which requires depository institutions with more than $10 billion in assets to provide timely responses to consumers requests for information about a financial product or service that the consumer obtained from the depository institution, the groups dispute the CFPB’s asserted authority under this section, stating “a bank’s obligation to provide a consumer particular information or data ‘in a timely manner’ in response to a specific request for such information is very different from an obligation to serve customers on particular terms or in a certain manner more generally … it appears that the CFPB is attempting to use this RFI to create a legal authority that it does not have: the right to dictate the type of customer service banks provide and the manner in which they do so.”

The groups also challenge the notion that the embrace of technology by financial institutions has led to a decrease in customer satisfaction, stating that the RFI “creates the false impression that the adoption of digital banking tools diminishes customer service. In reality, consumer demand drove banks to develop these tools and continued and increasing demand has encouraged banks to retain and grow these platforms.”

In the RFI published in late June, the CFPB invited comments from the public regarding what customer service obstacles consumers face in the banking market, and specifically, what information would be helpful for consumers to obtain.

POTOMAC, Md. — Women in Consumer Finance is delighted to share that, effective immediately, Trisha Asgeirsson will join us as co-Chair and Advisor to help shape and drive growth plans as well as provide mentorship for our group of outstanding women.  

Stephanie Eidelman, CEO and Chair of Women in Consumer Finance, explained, “As we seek to enhance value for our WCF community, Trisha will add a wealth of experience across banking, data, payments, consulting, technology, and consumer finance.” 

Asgeirsson is the founder and CEO of Asgeirsson Consulting, an advisory practice for fintech, banking, and retail technologies working with early-stage and emerging companies on strategy development, channel partnerships, and go-to-market planning.

Notably, she is the former SVP of MasterCard’s Data & Services Business, where she spent 20 years as one of the builders of what is now a multi-billion-dollar business for MasterCard worldwide. Prior to MasterCard, Asgeirsson led the JP Morgan Chase loyalty business and created their world-leading Consumer Card value proposition.

Asgeirsson grew up in Ireland and studied at the Dublin Institute of Technology. She immigrated to the US and settled there with her husband, Asgeir, and three children. A fun fact: Trisha, together with her husband, owns two successful small businesses. One is a renowned toy store in New York, and the other is a horse training and boarding business in southern Oregon.  

“When [Women in Consumer Finance CEO] Stephanie Eidelman reached out to me, I immediately recognized this as a unique event that is filling a huge need for developing confidence and expanding networks. I’m thrilled to jump in to help Stephanie grow the community and take it to the next level,” said Asgeirsson.

About Women in Consumer Finance

Now in its 5th year, Women in Consumer Finance is an event and community for women at all levels in the context of a common industry. If you work in any role at a lender, creditor, servicer, law firm, technology or service provider, or regulator, this event is for you. We provide inspiration, a guiding hand, and a support system women can leverage to recharge careers and deliver value to employers. WCF is not about compliance, best practices, or even finance. It’s about women, our common professional challenges, and how to tell our own career story – no matter where we are on our professional journey. We take a unique approach to building confidence, connection, and careers. There is nothing else like it. 

www.womeninconsumerfinance.com

DES PLAINES, Ill. — Asset Recovery Solutions, a nationally licensed Illinois-based provider of First Party, Third Party, BPO and MSA services welcomes Kenneth Peck back home.

Kenneth Peck has an inspiring success story.

He began his career in management with ARS more than a decade ago. That experience ultimately enabled him to amicably leave ARS so that he could relocate his family from Chicago, IL to Dallas, TX.. Upon his arrival in the Dallas area, Kenneth sought opportunities to further cultivate his skills by performing in key roles supporting operations and driving business development for Texas-based ARM companies. To date, Kenneth has amassed 24+ years of management experience within the credit, collections, and call center industry.  His varied operational and business development expertise extends through all phases of the First Party, Third Party and BPO verticals.  Kenneth also enjoys speaking at various industry conferences and events as a subject matter expert.

As the years since Kenneth’s departure passed, ARS continued to grow and most recently an opportunity became available that as fate would have it, was a perfect fit for the skill set that Kenneth now possesses. ARS is proud to welcome Kenneth Peck back to the fold!  Steven Fishbein, CEO at ARS commented that “Kenneth has a demonstrated record of exceeding client revenue goals, transforming under-producing business divisions and nurturing healthy client communication”. 

“My career up to this point has been an informative and rewarding journey, and it is great to come full circle to ARS. I’m home!” says Ken Peck.

Recent actions by the CFPB – including the issuance of a $19 million penalty against a company for errors in credit reporting – substantially complicated and increased the risk for creditors and debt collectors furnishing consumer information to the credit reporting agencies. 

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Due to the cost and risks associated with credit reporting, many creditors are questioning whether to continue reporting consumer data to the credit bureaus or simply cease reporting entirely. In this episode of the Debt Collection Drill video series,  Moss & Barnett attorneys Sarah Doerr and John Rossman examine the recent actions by the CFPB and provide specific guidance for how furnishers may assess and address the risks and costs associated with credit reporting in 2022 and beyond. 

The CFPB’s recent announcements are clear: an organization that does not protect consumer data and use it fairly violates the Unfair and Deceptive Acts and Practices Act (UDAAP). It may not be so simple though. To survive the current regulatory environment, ARM entities should pay attention to the substance of each announcement and the method by which the CFPB is expanding UDAAP.  

Within the last 30 days, the CFPB has declared that digital marketing, an algorithm, and data security issues can violate UDAAP. However, instead of using notice and comment rulemaking to gain insight from stakeholders, the CFPB has used interpretive rules, circulars, and an enforcement action to reshape UDAAP’s reach. 

Digital Marketing Interpretive Rule 

According to the CFPB’s August 10, 2022 announcement, digital marketers who are materially involved in developing content strategies for those subject to CFPB scrutiny can face UDAAP liability for unfair, deceptive acts or practices and other consumer financial protection violations. The CFPB reasoned that these service providers must adhere to consumer financial protection laws because financial firms rely on their expertise in machine learning and advanced algorithms to process personal data. 

Read the complete interpretive rule here. 

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Consent Order- UDAAP violation from use of algorithm

On August 10, 2022, the CFPB took action against a financial company, Hello Digit, LLC. As explained in more detail in this article, Hello Digit used a proprietary algorithm to help people put aside money for vacations or rainy days. However, according to the CFPB, the algorithm was faulty and caused consumers to overdraft their accounts. Notably, the CFPB’s press release mentioned the faulty algorithm as the cause of consumer harm; neither policies, procedures, nor human oversight were listed as contributing factors.

Read the complete consent order here.

Data Security Circular

On August 11, 2022, the CFPB published a circular regarding the requirement to safeguard consumer data. As further detailed in this article, practices that “are likely to cause” substantial injury include inadequate data security measures that have not yet resulted in a breach. Where companies forgo reasonable cost-efficient measures to protect consumer data, the CFPB expects the risk of substantial injury to consumers will outweigh any purported countervailing benefits to consumers or competition.

Though there was little to no detail provided, the CFPB listed the following as reasonable cost-efficient measures to protect data: 

• Required Multifactor authentication
• Proper Password management 
• Timely software updates 

insideARM Perspective

These announcements by the CFPB are relevant to everyone in the ARM industry. Even if your organization doesn’t have a digital marketing program, you may have service providers that provide insight regarding your data. If you think you don’t use algorithms, note that the CFPB did not define “algorithm.” Could the definition of “algorithm” include any automatic decisioning tool? It might. Finally, the lack of clarity and definition in the August 11, 2022 circular regarding data security is concerning.

The CFPB is playing a long game, and its recent announcements should not be considered in a vacuum. In June 2022, the CFPB focused on improving customer service (see here and here). The CFPB wants more human-to-human interaction with consumers, not less. They’ve also said on multiple occasions that the entities they supervise need to have proper audit procedures in place, and they cannot blame their vendors for things that go awry. We also already know that the CFPB believes its UDAAP authority allows it to review for discrimination and, in its view, technology impacts compliance. Notably, the CFPB is not seeking input from the industry as it stretches UDAAP. 

Putting it all together, if CFPB-supervised entities seek to implement new technology, they should tread carefully. Though new technology can help operations, it is not a cure-all or a way to be absolved of all decisions and human interaction. When considering new technology, ARM entities need to do more than simply look at the business benefits. To be on the right side of UDAAP, compliance departments should communicate freely with operations and I.T. and pay close attention to the impact new technology has on consumers. Further, beyond simply auditing vendors’ policies and procedures, vendor output needs to be analyzed too. While compliance, I.T., and operations may have been siloed in the past, to survive in the future these walls must be broken down and these groups must work together. 

The U.S. Court of Appeals for the Fifth Circuit recently reversed the class certification order of a trial court, finding sua sponte that the plaintiff lacked standing to bring a claim against a debt collection law firm under the federal Fair Debt Collection Practices Act (FDCPA).

In so ruling, the Fifth Circuit held that the plaintiff failed to establish that the law firm’s debt collection letter inflicted an injury with a “close relationship to a harm traditionally recognized as providing a basis for a lawsuit in American courts.” Without this showing, the Court held that the plaintiff could not establish the first element of standing: that she suffered a concrete harm.

A copy of the opinion in Perez v. McCreary, Veselka, Bragg is available at:  Link to Opinion.

The plaintiff received a debt collection letter from a law firm that specialized in collecting debt on behalf of the Texas state government. However, the limitations period for the debt mentioned in the letter had run. The plaintiff then filed a claim against the law firm under the FDCPA. The plaintiff also sought and obtained class certification. The law firm timely appealed the trial court’s certification order.

Federal courts are courts of limited subject matter jurisdiction. A court’s power to resolve disputes is limited to “Cases” and “Controversies,” U.S. Const. art. III, § 2. A lawsuit is not a “Case[ ]” or “Controvers[y]” unless the plaintiff can prove that he has standing to bring suit. Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61 (1992).

Standing requires the plaintiff to “show (i) that he suffered an injury in fact that is concrete, particularized, and actual or imminent; (ii) that the injury was likely caused by the defendant; and (iii) that the injury would likely be redressed by judicial relief.” TransUnion LLC v. Ramirez, 141 S. Ct. 2190, 2203 (2021),

This case involved the first element of standing: the requirement that the plaintiff show he has suffered a concrete injury-in-fact. A purported injury is not concrete for purposes of Article III unless it has a “ʻclose relationship’ to a harm traditionally recognized as providing a basis for a lawsuit in American courts.” Id., at 2200.

Even though the law firm failed to allege on appeal that the plaintiff did not suffer a concrete injury, the Fifth Circuit decided to analyze this question anyway because it noted that appellate courts have an obligation to assure themselves of jurisdiction — even in “limited” Rule 23(f) interlocutory appeals that typically embrace “only the issue of class certification.” Bertulli v. Indep. Ass’n of Cont’l Pilots, 242 F.3d 290, 294 (5th Cir. 2001).

The plaintiff advanced five theories for the assertion that she suffered a concrete injury-in-fact. First, she claimed that the violation of her statutory rights under the FDCPA itself qualified as a concrete injury. However, the Fifth Circuit noted that TransUnion explicitly held that “Article III standing requires a concrete injury even in the context of a statutory violation.” 141 S. Ct. at 2205 (quoting Spokeo, 578 U.S. at 341).

Second, the plaintiff maintained that the law firm’s letter subjected her to a material risk of financial harm and that this exposure qualified as a concrete injury. Specifically, the plaintiff claimed that her receipt of the letter subjected her to a risk that she might accidentally pay her time-barred debts. But the Fifth Circuit determined that this theory too was foreclosed by TransUnion, which held that merely being subjected to a risk of future harm cannot support a suit for damages. 141 S. Ct. at 2210–11.

Third, the plaintiff argued that the confusion she experienced from the law firm’s letter qualified as a concrete injury, which the Fifth Circuit analogized to the common law tort of fraudulent misrepresentation. Restatement (First) of Torts §§ 525, 549, 553 (Am. L. Inst. 1938). The Fifth Circuit again disagreed with the plaintiff because the nature of the harm recognized by fraudulent misrepresentation is a traditional, tangible harm: the “pecuniary loss” the plaintiff sustains. The Court reasoned that confusion can only be an intangible harm, so it is necessarily different “in kind” from the common-law analog of fraudulent misrepresentation. Gadelhak v. AT&T Services Inc., 950 F.3d 458, 462 (7th Cir. 2020).

Fourth, the plaintiff alleged the time she wasted by consulting with her lawyer after receiving the letter qualified as a concrete injury. Absent an allegation that the plaintiff paid her attorney anything for the consultation, the Fifth Circuit assumed that the purported injury was solely lost time. However, the plaintiff did not offer a common-law analog to the time-based injury she claimed to have suffered, so the Court held that she did not meet her “burden [to] demonstrate[e] that [she has] standing” based on that theory. TransUnion, 141 S. Ct. at 2207.

Lastly, the plaintiff claimed that her receipt of an unwanted letter caused her to suffer a concrete injury analogous to the tort of intrusion upon seclusion. Once again, the Fifth Circuit disagreed.

A person commits the tort of intrusion upon seclusion by “intentionally intrud[ing], physically or otherwise, upon the solitude or seclusion of another or his private affairs or concerns . . . if the intrusion would be highly offensive to a reasonable person.” Restatement (Second) § 652B. One pattern of liability is for repeated, harassing communications. See id. cmt. d; Gadelhak, 950 F.3d at 462.

The Fifth Circuit recognized that harms analogous to this tort can qualify as concrete. See TransUnion, 141 S. Ct. at 2204 (citing Gadelhak, 950 F.3d at 462). However, the Court also concluded that Congress did not elevate the receipt of a single, unwanted message to the status of a legally cognizable injury in the FDCPA. Instead, its closest analog to an unwanted letter — unwanted telephone calls — must be made “repeatedly or continuously.” 15 U.S.C. § 1692d(5).

Accordingly, the Fifth Circuit vacated the trial court’s class certification order and remanded the case with instructions to dismiss for want of jurisdiction.

ROCHESTER, N.Y. — Continental Service Group, Inc., d/b/a ConServe, together with its team of dedicated employees, proudly supported the Ibero-American Action League, Inc. through their ConServe Cares program in July.  Additionally, the funds raised by the employees’ generosity is supplemented by the organization’s “Matching Gift Program.”  This ongoing initiative symbolizes ConServe’s commitment to its corporate mission of helping to improve the human condition.

ConServe Cares is a program in which ConServe employees can elect to “give back” to their local communities by donating to a diverse group of organizations throughout the year.  George Huyler, ConServe’s Vice President of Human Resources said, “This collaborative effort is a priority and reinforces that the ConServe team is empowered and gratified when they help individuals and neighborhoods in need.”

“We are grateful for the continued support and collaboration ConServe has provided Ibero throughout the years,” said Angelica Perez-Delgado, President & CEO of Ibero.  “This year we are honored to be the July recipient of the ConServe Cares program financial award. Their financial support is critical to achieving our mission of uplifting, empowering, and advocating for those we serve. Thank you for your support.”

About ConServe

ConServe is a top-performing accounts receivable management service provider specializing in customized recovery solutions for their Clients. Anchored in ethics and compliance, and steadfast in their pursuit of excellence, they are a consumer-centric organization that operates as an extension of their Clients’ valued brands.  For over 36 years, they have partnered with their Clients to provide unmatched customer service while simultaneously helping them achieve their accounts receivable management goals.  Visit us online at: www.conserve-arm.com

About Ibero-American Action League, Inc.  

Established in 1968, Ibero is a dual-language multi-service agency that uplifts, empowers, and advocates for Latinos and the underserved to achieve equity and become fully valued community members.  Visit them online at:  https://www.ibero.org/

Emotional intelligence and making connections are at the heart of empathy. An empathetic approach to debt collection relies on the ability to recognize customer triggers. We teach this as having the awareness to understand someone’s emotions. Once you understand the emotions, you adapt your communications style to make a connection.

A stepped approach to teaching empathy includes tapping into behaviors, using a pragmatic call approach and monitoring calls for continuous improvement. Here are the three elements of training for an empathetic approach to collections:

1. Success profiles and behaviors
2. Call modeling to recognize triggers and investigate root cause
3. Practice and ongoing coaching

“But being fully empathetic also means being able to regulate your own emotional responses, care about how others feel, understand what they need and respect differing views. —BBC Science Focus Magazine”

Success Profiles and Associated Behaviors Drive Connections

Adapting a conversation based on customer emotions is far easier when face-to-face. Phone agents don’t have the luxury of seeing non-verbal cues.

Start with success profiles and associated behaviors necessary to recognize the need for empathy. Once you understand the competencies your team needs to possess, you can teach those behaviors.

Sample Success Profiles and Behaviors

• Customer Understanding (Listens intently to ensure full understanding of Customer needs) – Understands what the ‘right’ questions are and when digging deeper is needed to achieve the information you need to provide the best solution.

• Effective Communication (Communicates with appropriate emotion with every Customer) – Can match the Customer’s communication level (e.g., pacing, calming tone if upset, volume of speech if they cannot hear you).

• Business Acumen (Demonstrates excellent knowledge in all aspects of the business) – Demonstrates a clear understanding of the tools and programs to help the Customer (qualification, escalation, paperwork accuracy).

• Balancing Customer and Client Needs (Anticipates the Customer’s needs with what the client can offer) –Proactively looks for ways to match the Customers’ needs with offers/programs that can help and respectfully communicating when we cannot help.

• Critical Thinking (Ability to review Customer data, understand policies/procedures and deploy sound judgement to help) – Thinks things through thoroughly and uses common sense to reach workable solutions that balance efficiency and exceptional Customer experience.

• Conflict Management (Takes action to resolve conflict)- Recognizes unfavorable Customer tone/speech patterns and adapts to try to avoid potential escalation.

Using Success Profiles with Your Team

Identify the success profiles and corresponding behaviors that your team requires and then assess individuals based on who best meets the profile. Not every employee will have every item listed but they can be taught behaviors. Teach agents how to recognize when empathy is needed by recognizing how people sound and what they say.

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Finding an Empathetic Approach in a Call Model

The four components of the call model framework balances assessment of the customer’s financial situation—which is incredibly important—with providing sustainable solutions. The framework provides a consistent customer experience and effective agent habits throughout the call.

“The call model flow ensures that administrative elements are handled, but also that the call has an appropriate flow to cover all those elements. It’s all about the balance: Achieving the right balance of empathy, regulatory and technical execution of a call. Remember, everyone wants a piece of your call: QA, regulators and customers.”

Four Components of a Call Model

1. Opening – We teach repetitive behavior ensuring that we’re verifying the customer, talking to the right party, reading the mini-Miranda and building rapport with the customer through scripting and role playing. This is where you acknowledge the caller’s situation.

2. Assessing – We teach here to understand the reason for delinquency and discover how much the customer can pay. You assess the customer’s financial situation by asking open-ended questions until you understand the customer’s ability, stability and willingness to pay. This activity uses root cause analysis. The key to communication here is to avoid duplicative questions and a condescending tone.

3. Resolving – Here we explain how to match the customer’s circumstances with the available options (customized to your organization) such as payment treatments or payment programs.

4. Closing – We teach the importance of how you wrap up the call. Confirm the customer’s understanding of next steps and set expectations for what the customer is to do and what your company will do. It is important here to thank the customer, even if only for their time and making them feel valued as they leave the conversation.

Throughout the call model, you can find opportunities to recognize customer triggers via the tone, pacing, word choice and level of engagement in the conversation. This is where communications skills become even more important.

Building Communications Skills for the Call Model

While there are four specific stages to the call model, calls cannot be fully scripted. Agents must learn how to adapt during the call based on the customer’s cues.

We do this with tone, pace, avoiding negative language, and demonstrating active listening by reflecting what you’ve heard. Listening intently and saying “I understand” authentically can go a long way to building trust with the customer.

Effective Communication Techniques:

• Maintain a tone that is calm and confident. Keep your pace steady and not rushed.

• Be selective with word choice: Use “I” and not “you” when speaking to customers. Some suggested phrases are: (a) I have helped others in a similar situation… (b)I understand…(c) I know it can be upsetting when…

• Use open ended questions to gather information. For example: “How are you handling your other bills?” or “How did that impact your ability to pay?”

• Keep control of the call. This requires an ability to avoid getting emotional, using silence effectively and avoiding judgmental tone or words.

Training and Monitoring for Success

Part of teaching empathy requires an understanding that this is not a ‘one and done’ endeavor. Using our methodology, we start by teaching why empathy is important. Then we listen to examples of successful calls that are managed correctly with an agent showing empathy. Finally, we have the team practice and take part in role play using actual customer scenarios.

We suggest you identify the top call types and develop realistic examples for each scenario to practice with your team. Common scenarios can be modeled for role play and training to the specific call types.  Below are five scenarios we often leverage in our training:

1. Medical Hardship
2. Death / Bereavement
3. Incarcerated Borrower
4. Fire in the Home
5. Homeless Borrower

Listening to calls and providing feedback is crucial to sustainability. Though every customer situation is different, similarities occur in recognizing when empathy is needed and how to make a connection with the customer. Here you can identify when calls are handled the right way and share those instances with the team to model the appropriate behaviors.

Expectations should be assigned for every call. That way, each person being trained has standard guidelines based on success profiles. Each agent’s handling of a scenario can be assessed during training, practice and role play. We recommend intensive coaching after the training because coaching cements learning and supports sustainability for the long term.

While you cannot script empathy, you can have a guide until the team can get there on their own—just like training wheels. Each of the elements outlined above help develop empathetic behaviors and the ability to listen and communicate with empathy. We’ve seen this work to improve collections rates and customer satisfaction scores.