Choosing a credit counseling agency is one of the most crucial decisions auto lenders can make. Why? Because the credit counseling agency a lender chooses to work with has a direct impact on the financial well-being of their clients, as well as the overall success of their lending business.
It’s a decision that cannot be taken lightly – and we understand it can be overwhelming. In this blog, we’ll cover the key factors to consider when picking a credit counseling agency, as well as simple, actionable tips to help you come to an informed conclusion.
Since the credit counseling agency works with your customers, which in turn has a significant impact on your business, the two major aspects to consider are – their service to your customers and their service to you.
Service to your customer
There are several aspects to the service a credit counseling agency provides to your customers.
Accessibility
The customer always comes first. So there are a few important things to identify – how available is the agency to your customer? Are they available on phone, online chat, or in person? What time do they operate and in which locations?
Quality and nature of counseling
Then comes the meaty bit – what is their counseling approach like? Is it pre-qualification for a Debt Management Plan (DMP)? Or is it a real, in-depth conversation around budgeting and expenses? Does the customer have a choice on the first call?
Alternatives on offer
It’s essential to identify the alternatives the agency has to offer the customer, and the tools in their arsenal in case the customer chooses to self-administer their debt repayment plan. Offering clients these self-administration options empowers them to take control of their financial journey and explore options that are in line with their unique circumstances.
Ongoing support
What are the agency’s follow-up protocols like? What are their timelines for contacting clients once the initial consultation is done? It’s important to ensure that the agency offers ongoing support to customers throughout their journey towards financial stability.
Automation
Take note of the agency’s capabilities around using automation for payments and enrollments, along with support for both digital and traditional paper and fax-based methods. Assess how well the agency can leverage its technology infrastructure to quickly facilitate conversations and accurately process client requests.
Service to you
The other factor to consider is the kind of service the agency offers to you as a lender. This too includes several different aspects.
Communication
Firstly, determine whether customer referral calls will be taken by live agents or by automated attendants. Assess their responsiveness and professionalism, and don’t forget to inquire into their reporting practices. Ensure that they can give you detailed insights into their interactions with your clients.
When you work with an agency that offers proactive live support and comprehensive reporting, it helps you maintain transparency and accountability throughout the referral process.
Payment systems
Identify the agency’s payment processing timelines and procedures, especially their ability to prioritize first-in-line payments and ensure timely disbursements. Evaluate the kind of measures they have in place to guarantee the security of client payments. A seamless and secure payment process goes a long way in instilling confidence in clients, and in turn, fosters a sense of trust in the lender.
Dedicated support
Determine if the agency offers dedicated counselors for your referrals and if they can account for specific preferences of instructions regarding certain client interactions. Look into their levels of flexibility when it comes to handling near charge-off customers, as well as their openness to collaboration to achieve desired outcomes.
Reporting
Evaluate the kinds of reporting the agency offers, including insights into client progress, adherence to payment plans, as well as the overall effectiveness of the program. Look into their proposal and payment systems, and of course, their compatibility with your own technology infrastructure.
Accreditations
Find out if the agency has the requisite information security approvals. Verify their credentials and their accreditations, such as Better Business Bureau ratings, their industry association memberships, and certifications from regulatory bodies. Make sure you also inquire into their third-party validations and endorsements.
When you partner with legitimate accredited and validated agencies, it instills a sense of confidence in your customers about the quality of service provided, which then goes on to
enhance your reputation.
Conclusion
The credit counseling agency you work with has a direct influence on customer satisfaction levels, risk mitigation, and operational efficiency. It’s key that you know what to look out for and forge partnerships with agencies that align with your values and offer only the best to your customers. At Peregrin, we understand what a huge decision this is – and we’re here to help you make sense of the selection process. Contact us today to know more about how we can assist you!