Experian Announces Service That Notifies Collection Agencies Of Your Ability To Pay

Experian announced an enhanced version of their service “Collection Triggers,” today. The service monitors credit and pings collection agencies when an account appears to have an improved ability to pay. From their Press Release:

The new version provides collectors with notification when a debtor’s ability to pay appears to be improving.
This is especially critical for financial services organizations looking to optimize late stage and charged-off receivables.
The introduction of additional trigger criteria and attributes within Collection Triggers increases the ability for companies to act quickly when new information is available. Subscribers to Collection Triggers are notified within 24 hours when the financial status of a consumer within their collection portfolio has improved.

“Collection Triggers increases revenue by allowing companies to be first to the door of consumers who have improved their ability to pay,” said Zaydoon H. Munir, senior vice president, Experian’s Consumer Information Solutions. My, what a lovely industry. —MEGHANN MARCO

Experian Now Empowers Collectors With ‘Improved Ability to Pay’ Consumer Intelligence [PRNewswire]

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  1. SOhp101 says:

    All the reason to loathe Experian.

  2. Kornkob says:

    See, now, I don’t have a problem with this, really. Someone gets into unmanagable debt and now the debt collectors get a tool to find out when is best to collect that debt.

    One could even take this as a good thing for consuemrs who get out of depth: this way the collection agency will only bother you once you’ve started to build an ability to pay.

  3. kenposan says:

    So let me understand this better. I run up a huge debt (reason doesn’t matter). I finally get to a place where I can start to save some money and improve my condition. Experian tells my creditors they can up my monthly payments so I CAN’T get back on my feet?

  4. DeeJayQueue says:

    I doubt collectors will stop hounding you for any reason despite your ability to pay.

    I bet the real deal with this is so that when you un-default your student loan and finally get your credit back on track so that you can buy a house or maybe a car, and you’re in year 6.5 of a charge-off with someone, that someone doesn’t have to do any legwork to track you down anymore, since experian is going to dime you out.

    It would be nice to think that debt collection is some civilized thing where the agents stop calling you when you tell them to, and if you get into dire financial straits, they’ll ease up and let you get back on your feet and come politely asking for their money when you’ve got the potential to earn it and give it back to them.

    It aint.

    We’ve read the horror stories about how collections agents treat people, even when they have the wrong number or information they still badger people and degrade them until they either get sued or they ruin someone’s life. They are the scum of the earth and a special bolgii of hell is reserved for them below used car salesmen and Comcast technicians.

    The only thing this tool does is keep you “On the Grid” so that the moment your financial situation changes for the better, and you can see a light at the end of the tunnel, you’ve got more people calling you and demanding money from many years and many bad decisions ago.

    I know people shouldn’t get into credit trouble and that collections is just business, but we all make mistakes some worse than others. It’s important to teach financial responsibility to young people so they don’t get into the trouble in the first place, rather than rat them out later on in life. After all, it’s not like the kids didn’t apply for the credit cards out of nowhere… someone had to offer them the credit knowing that they’d be a risk… risk involves loss and companies are crying foul now that they see their risk didn’t pay off like they thought.
    The government is making it harder to default on student loans, harder to declare bankruptcy, and placing stricter limits on what can be included in one, all at the behest of banks and credit companies, not consumers.

  5. klondikedog says:

    Credit and collection laws in this country are like the wild west. My wife had a credit card account a few years back (10). Totally outside the statute of limitations. We managed to pay it off completely 4 years ago in return for dropping it off her credit report, which I have all the documents to back up buried in my attic.

    A month ago she starts getting collection calls on this long closed account from a junk debt buyer. Letters to the collection agency are hopeless and the credit bureaus even worse. I think our only recourse will be a trip to court.

    People should pay their bills. However, the lack of oversight of collection agencies and credit bureaus is awful. Collection agencies can report pretty much whatever they want. When we were trying to buy a house, a student loan she was paying showed up as in default 6 times. My problem is companies expect consumers to pay up, but who watches the credit bureaus? Why are their three of them, all reporting different information?

  6. zentec says:

    I have a collection agency calling me on my cell phone for “Roger”. I’m not Roger, I’ve never been Roger. Yet they refuse to believe me and about the time I get these people finally off my back, the debt is sold and Roger’s file descends to the next lowest life-form in the collection business.

    Finally I’ve come to the point where I’ll ask them to provide proof of the debt, in writing to my real name and address. They say they can’t because I’m not Roger, and then the light goes on. But I have to do this for *every* one of them unless I want to change my cell phone number.

    With the way they have treated me, I can only imagine what it is like for people like Roger.

  7. klondikedog says:

    For the last few years we have been plagued by collection agency calls for Victoria. Apparently, she had the same number as us and since moving and getting two new numbers they keep calling, presumambly because they hear, “The new number is…”

  8. LatherRinseRepeat says:

    Some of those collections calls are scams. They use bully and fear tactics to coerce people into paying money for debts that don’t exist. If anyone gets one of these calls, do not give out or “verify” your personal info like your name, address, or SSN. Just tell them to mail the details of the debt to the address on their records. If they say no, then just tell the person that this is clearly a scam and you will be notifying the police.

  9. cindel says:

    Idiots!!! The problem is most debts will be out SOL and the debtor is not required to pay jack.

    Good luck getting your money CAs!

  10. weave says:

    If you’re in this situation and want to hide new assets from debt collectors, solution is simple. Claim you are an illegal alien and open up an account at a bank that caters to them. No SSN needed, no way to tie it back into your other accounts.

  11. Wonderful! Now Experian can have the debt collectors hassle me about a debt that I made the mistake of cosigning. I completely paid off the debt through an arrangement with the first collection agency that contacted me; but for whatever reason, I get a new agency contacting me every other year to collect the debt. I call the new agency up, talk to someone with an attitude saying that I must be mistaken, and then fax them the signed agreements for payment with a list of checks and photocopies of the last few cancelled checks.
    I am not sure if it is legal, but I include in the cover letter that any further contact on the issue means that thay are contracting my services to research this matter for them, and my fees for this are $200 per hour. That seems to end it.

  12. Miguel Valdespino says:

    Once you know your rights, you can get the abusive collection agencies off your back. If you take the time to do a little research and write a few certified letters, they’ll back off. If they don’t, you can file in small claims and get money for every violation they do.

  13. clbarrientos says:

    This is Awesome! With companies like Prosper.com starting to get traction, lenders can step up and collect money from the peers that owed money once their financial situation has improved! Groundbreaking!

  14. skittlbrau says:

    I hate to say I really don’t see a huge problem with this, with the caveat that debt collectors should operate within the confines of the law.

    If you borrowed money and have the ability to repay, you should.