Survey: Online databases can help collectors double right party contact rates

A new survey from TransUnion again emphasized the value of accurate information available to collectors as a pathway to improve skip-tracing success.

Officials found that more than nine in 10 collectors — 95.2 percent to be exact — have improved their right party contact rate since using online databases and sophisticated technology.

TransUnion also determined nearly three in 10 respondents (27.4 percent) have more than doubled their right party contact rate by using online databases to uncover information.

Right party contact information — such as phone numbers, addresses and place of employment — can help collectors reach the right person on the first attempt. More than eight in 10 (85.5 percent) collectors surveyed by TransUnion said online databases greatly improve the accuracy of customer information.

The survey also found that despite the benefits derived from using online databases, only 57.6 percent of respondents said they always use them. Approximately 40 percent said they “sometimes” use the databases.

“As right party contact rates become increasingly important, the collections industry needs to invest in databases with search technologies to identify the best contact information. Our survey findings clearly demonstrate the value of using an online database with up-to-date, accurate and actionable data,” TransUnion vice president Peter Ghiselli.

“We have shown the value of using online databases and it would be in the best interests of collectors to embrace this technology to help improve their process and aid them with their compliance efforts,” Ghiselli added.

TransUnion conducted the survey in January and included 635 respondents from debt buying organizations, first-party collection agencies, third-party collection agencies and collection law firms. Respondents collected a variety of types of debt, including auto, bankcard, commercial, consumer loans, government and municipal, medical, mortgage, private label, student loans, telco and utility.

TransUnion explained conducted the survey to better understand what solutions work best for the collections industry and their continued right party contact efforts.

One other note from the survey. According to respondents, having one best phone number for an individual is the most important aspect of right party contact information. Nearly seven in 10 respondents (67.9 percent) ranked having an accurate phone number as the most important tool, while 63.9 percent ranked address as one of the most important pieces of information.

“One best phone number, available through TransUnion’s TLOxp solution, allows business to achieve better results while investing fewer resources,” Ghiselli said.

“At TransUnion, we combine credit and alternative data with sophisticated analytics through a variety of products and services to offer collectors the latest available information to improve right party contact rates,” he went on to say.

TransUnion Collections Solutions combine its almost 50 years of experience with deep data and analytics to provide customers with better insights to improve skip-tracing, contact the right party and prioritize accounts. TransUnion’s tools and strategies can allow organizations to streamline processes so they can work more accounts and achieve better results.