Build a Collections Repayment Program Strategy to Break Free from Broken Promises

Repayment programs are crucial in collections, but many fail. Here are the essential elements for a successful repayment program strategy and tips to enhance collections conversations to ensure the right program is chosen and completed.

For those of us in the collections industry, we are familiar with various terms referring to a customer’s commitment to pay. Whether it’s “plan,” “program,” “treatment,” or “arrangement,” we’re essentially discussing the same thing. For consistency in this article, we’ll refer to them as “programs.”

Repayment programs take center stage in every collector’s conversation with a customer. When meaningfully applied, these programs offer relief to the customer and certainty for the lender, yet many end up broken. So, what causes this breakdown? It boils down to two critical components: the suite of available program offerings, and the effectiveness of the conversation with the customer.