The POPIA act and debt collectors – a combination that has had a major effect on the processes and operations of all South African collection agencies, leading them to seek new, alternative and innovative solutions such as debt collection software. However, no two software platforms are the same. At TRAQ, we take compliance and ethical debt collection very seriously and for all the right reasons.
In this part of our ethical debt collection series, we’ll be featuring some of the most important things you as a collection agency need to consider – and how TRAQ can help you do so with ease. Compliance and regulations are often overlooked and fall by the wayside, forgetting that this is the crux of any debt collection success, or complete loss and reputation. TRAQ assists you in handling an array of operations and recovery strategies with the best features and benefits you will ever need and ethical debt recovery is one of them. Data security with peace of mind is a feature we at TeamTRAQ are proud to stand by. So let’s begin.
POPIA Act And Debt Collectors – Why Is It Important?
You know the answer to this is simple, and yes – it is. Sensitive personal information. POPIA compliance ensures that this information is handled ethically and lawfully. As you may know – POPIA in South Africa is the acronym for “The Protection of Personal Information Act”. This information includes personal data such as names, addresses, phone numbers, emails, social media accounts – and even financial information. POPIA was passed to protect individuals’ privacy and ensure responsible handling of their personal data. However, this is not often the case for many debt collection agencies – and it’s easy to fall privy to. So you ask yourself:
“Why do I need to know this if I believe my agency adheres to the correct standards and protocols?” and “Why is this such an important topic to bring up?”
Well, because of the ramifications you may, or may not be aware of. The truth is that data-breaches of personal information go beyond your agency. The impact is so immediately severe that personal information is strewn across the internet in a matter of seconds to data brokers, scammers, AI models and criminals – and as far reaching as the dark web – where the biggest cartels of online criminal activity run rampant. This information will be online forever with no recourse whatsoever.
Should that be traced back to you, you become responsible. You need peace of mind and so do your debtors. TRAQ solves this challenge by taking on data-security measures ahead of time to continuously improve security features to ensure you can maximise on collections without the complex nature of this most underrated requirement.
TRAQ Solves The Do’s and Don’ts In Debt Collection
Many traditional debt collection practices often resort to unethical tactics that not only damage your reputation but also violate POPIA regulations. Some of these notorious methods include:
#1 False or Misleading Information to Recover Debt
One of the most common nefarious schemes used by unethical agencies is inflating debt amounts or misrepresenting the consequences of non-payment. Broadcasting conflicting information is illegal and you simply cannot blame “AI” or your “system”. This is why TRAQ is so powerful – because we ensure that our software adheres to strict data-privacy laws and compliance. Remember, with POPIA, the onus is on you the debt collector to ensure the security of debtor information. This is how TRAQ leads the way and sets a new standard and benchmark for South African debt collection software.
#2 Harassment in Debt Collection
This often includes repeated calls at unreasonable hours, threats of legal action and disclosing debts to third parties. This can also be emotionally and mentally damaging for debtors. Many collection agencies access debtors data and use manipulated communication methods to reach them. Some of these include intimidating text messages, emails, spoofed phone numbers, unsolicited voicemails, discount offers – and yes, false pretences posing as other companies, services, couriers and even financial institutions such as banks or departments thereof. TRAQ’s unique features assist you by equipping you with the debt collection tools and features you need to avoid costly mistakes. Endless complaints inevitably end up in a class-action lawsuit. There must be a better way?
#3 Lack of Transparency in Debt Recovery
Debtors have the right to know how their information is collected, used, and stored. Lack of transparency can destroy trust and violate POPIA’s accountability principle. TRAQ offers features like data access request portals that allow debtors to easily access and download their data. This transparency builds trust and demonstrates your commitment to POPIA compliance.
#4 Unauthorised Contact
Contacting debtors without their consent or after they have requested communication to cease is a big no-no. POPIA demands explicit consent for contacting debtors. This means you can’t call, email, or text them without their green light. Unethical agencies often disregard this crucial regulation, leading to a web of problems. Deceptive tactics like pretending to be lawyers, employers, or even friends of the debtor are used to pry loose contact details are common. The bottom line – Unauthorised contact is not simply a POPIA violation; it’s a recipe for disasterTRAQ safeguards against this.
#5. Build Trust with Debtors Through Clear Communication
Losing trust causes your collections agency a lot of damage at the surface, but also when making false promises about legal consequences or unrealistic timelines for debt settlement. It is a violation of POPIA’s fair dealing principle. It can also damage your agency’s credibility and lead to debtor frustration. Do you guarantee proof of settlement? Do you keep debtors informed and not harassed? TRAQ provides pre-approved communication templates that adhere to legal guidelines. These templates ensure your communication is truthful and avoids misleading debtors about the debt collection process – at the right time!
How Does TRAQ Software SafeGuard You And Increase Recovery Rates?
There are limits, and we know them. TRAQ doesn’t just serve as a rudimentary debt management platform; It helps you gain more understanding into debtor profiles and behaviours using advanced analytics, assisted by AI, ethically. TRAQ accelerates obtaining and managing debtor consent for data collection and communication, too.
Our user-friendly software features allow you to use automation for these tasks easily, effectively and personally so that you can focus on more complex situations. With 24/7 availability, an automated debt collection system works to ensure debtors can make payment arrangements or contact your team at a mutually agreed convenience. Isn’t that just great?
TRAQ also gives you the power of omnichannel communication with a secret and innovative advantage; The ability for personal omnichannel communication. Knowing this is taken care of ethically, you have the benefit of reaching debtors via their preferred methods, analyse the situation and automate it – leading to a significant increase of trust and better client relationships for far increased recovery rates.
Benefits Of The Best Debt Collection Software In South Africa
- Loyal activists of the “Humans First” approach
- We use AI-assisted tools ethically and lawfully
- Advanced analytics for powerful debtor profile insights
- AI-assisted predictive modelling into debtor behaviour
- Consent management system to record debtor consent
- Pre-approved communication templates
- SMS Sentiment intelligence for improved debtor engagement
- BTC – The best time to call
- Simplified Opt-In and Opt-Out Processes
- Secure data storage in encrypted environment
- Omnichannel communication that is accurate, personal and lawful
- Improved debtor experience for
- Regular security audits and updates
- Compliant query management & escalation features
- Process automation to free up Valuable agent time
What are you waiting for? Would you like to know more?