Commercial Legal Collection Software
Commercial debt collection requires a level of sophistication not typically required when collecting other classes of debt. Add to that, a legal recovery strategy when collecting commercial debt and the complexities begin to multiply.
The nuances of dealing with commercial debt collections are complex to be sure. The demands of documentation, multiple responsible parties, individual and corporate liabilities, multiple-party payment plans and intense research and documentation all come in to play when dealing with commercial legal debt collection. Having a commercial legal software system that is intelligent enough to manage these challenges can be the difference between a successful outcome and lost recoveries.
Today, debt collection is a numbers game. Collection agencies and law firms have to work very large volumes of accounts in an environment with high turnover. Decisions have to be made after considering many data elements, historical information and prior efforts. Collection managers must do more work with fewer people and the obligations and constraints of regulatory compliance are immense.
With the changes we see in the industry today, it is clear that new thinking is required and many commercial legal software systems don’t provide the required sophistication or intelligence to meet the challenges the industry faces today. Collection agencies must take into account the following to ensure their commercial legal software can address the following:
- Much greater focus must be placed on building commercial legal collection software that can make some of the decisions that were traditionally made by collection experts
- With today’s workforce, the legal collection software system must be user-friendly, relaying on little memorization or manual work
- The responsibility of enforcing compliance rules must be shifted from the collector to commercial collection software system
- Collection companies must leverage technology and the power that computers and sophisticated commercial legal software can deliver
- Effective commercial legal software systems will run on artificial intelligence, effectively learning effective strategies and procedures to maintain operational compliance when collecting commercial debt through legal channels
Commercial collections is all about research, follow up and documentation. In the legal world, timely follow-up becomes critical as we move commercial accounts through different phases of the legal collection cycle. As you consider a software vendor when selecting a commercial legal software system be sure to consider the following:
- Automation – in a mature industry, follow-up actions must be accurately scheduled by the collection software
- Minimal use of paper to manage account flow – paper is inefficient and slow
- Technology that will manage compliance rules at the federal, state and municipal level
- The ability to manage contact frequency and number of messages left, based on client, federal, state or municipal regulations
- Track the many data elements that characterize commercial legal collections
- Manage multiple responsible parties or “Linked Debtors” and have the legal collection software work each party separately
- The ability to import and export information between your clients and the system, preferably without custom programming
- The ability to tie documents and images to individual accounts, debtors and payment plans
- The ability to have different people work an account at different times, and to give payment credit to multiple individuals
- Due diligence must be performed by the collection system – As an example, accounts that are not worked as required must be forced into queues where they will be worked
- The ability to handle multiple lawsuits per account, as an example, a suit against the corporation and multiple suits against individuals or officers of the corporation
- The ability to independently manage the duties of skip tracing across multiple individuals associated with a single commercial legal collection account.
As the level of sophistication, documentation and effort increases when dealing with commercial debt collections, the commercial legal software must take on a larger role in managing the process, procedures and compliance to ensure a successful outcome. Choosing a commercial legal collection software system that is driven by artificial intelligence can ensure success when collecting commercial debt.