The secret fifth season has arrived. You guessed it, it’s tax season. Why is it so crucial for debt collection? Tax season is when most people anticipate a tax refund, so they’re likely to have extra money on hand that they can use to pay off their debt. It’s imperative for collection agencies to put the option of using tax refunds to pay debt at the forefront of a consumer’s mind.
In fact, consumers are thinking along similar lines. Many consumers who expect a tax refund intend to use that money to pay off debt. But there’s a gap between the number of consumers who intend to pay and those who actually do so. Consumers may instead choose to use their refund to splurge or add to their savings.
So how to shrink the gap between intent to pay and follow through? By leveraging Pairity’s AI platform. The AI identifies these consumers by bringing together historical data that other platforms don’t, such as employment history, status, and more. It can also determine which consumers have previously used tax refunds to pay off debt, making it likely they’ll do it again this year. The platform then ties the information together to create predictive analytics that pin down a consumer’s propensity to pay.
Now that you know your consumer’s background and payment likelihood, it becomes a matter of reaching the consumer. Pairity’s AI figures out which methods consumers will respond to, leading to an optimized workflow. With a platform-matched agent or other medium that can speak directly to a consumer’s concerns, you can ensure successful and compliant contact. In addition, the AI can also suggest messaging changes for agents depending on timing. For instance, if tax season is still in early stages, the platform will provide agents with helpful language encouraging consumers to keep open the option of paying down debt with their refund.
After reaching consumers, you can ensure follow through and shrink the tax refund-debt payment gap with Pairity’s consumer portal. It allows consumers to choose the most convenient payment method for them, whether that be cash, check, ACH, debit card, etc. With such a smooth experience, consumers will feel more incentivized to pay off the remainder of their debt, leading to increased collections and increased revenue.