Closing the Books: Overcoming Debt Collection Challenges in 2023
Inflation continues to be something consumers have to deal with on a very regular basis. In addition, debt is burden that people from all walks of life have to contend with. So, when it comes to both of these issues, how can debt recovery agencies manage collections, their interactions with consumers, and work within new regulations successfully?
On this episode of Closing the Books, host Gabrielle Bejarano speaks with T.J. Lee, Director of Operations at IC System. Lee wears many hats at IC System, so he knows a thing or two about debt collection challenges and how inflation has impacted collection agencies. “Coming out of the pandemic, it’s definitely been challenging. Says Lee. “(During the pandemic), people were paying down old debts because they had that disposable income to do so, but I think . . . after being cooped up for a couple years, people want to get out . . . They want to go travel, they want to have fun, they want to go to restaurants or concerts, and all that stuff costs more money, and . . . more importantly, your basic needs are costing more, too.”
This episode covers these issues and more, including:
- How regulation has impacted the way collection agencies work.
- Changes in how collection agencies interact with consumers.
- How IC System leverages its extensive 85 years of experience to navigate through change effectively.
Regarding how inflation changes consumer behavior, Lee added “with interest rates being higher out there for mortgages and things like that, there isn’t as much pressure for the consumers to be as concerned about their credit scores, because they’re not taking out as many loans.” In a landscape where consumers are less aware of their credit standing, collection agencies have to keep up with changing habits and adapt to new regulations as they get implemented.
T.J. Lee is the Director of Operations at IC System. Having been at the company for over nine years, he was previously a Supervisor and Operations Manager at IC System. He received his Bachelor of Business Administration from North Dakota State University.
