San Francisco-based TrueAccord, a debt collection agency with digital-based business practices, is boosting its auto finance business in 2015.
Ohad Samet, co-founder and chief executive officer of TrueAccord, told Auto Finance News that he expects more auto lenders to embrace digital debt collections services in 2015. Digital debt collectors secure debt from customers primarily through email, online and mobile application communications, and are typically smaller and less heavily staffed than standard collection agency offices. Contacting the customer by phone is kept to a minimum.
TrueAccord’s primary customers are banks, but the company has picked up some clients in the auto finance business, Samet said. “CFPB rules and compliance costs are going to become more expensive for lenders,” Samet said. “Digital debt collection gives the customer a better experience, making it easier to collect debt.”
TrueAccord is seeing growth in the demand for its service. The company reported a 29% increase in business between January and February of this year. TrueAccord manages about $45 million in debt.