5 Ways to Make Debt Collection More Equitable 

Equitable bill pay access is more than a passing trend. It’s good business.  Private sector and public sector organizations alike understand that delivering equitable offerings shows customers you have their best interest at heart and builds trust. The benefits extend to the staff and organization as well, streamlining processes, amplifying efficiencies, and facilitating steadier revenue collection.  With a more reliable influx of funds, organizations can make better decisions when budgeting for other needs, especially important to governments and utilities with limited budgets that serve the public and diverse communities.  

As a result, many communities are identifying more equitable ways to collect the much-needed revenue. Here is a short list of ways to promote equitable access to all of your customers.     

1. Promote assistance programs where people pay their bills.  

There are resources provided at the local, state, and federal levels that are available to people who need help paying their bills. These may include benefits for specific populations like veterans or senior citizens such as tax deductions, ways to appeal fees, or assistance programs that help low-income households with their energy costs. Promoting these programs or resources to your customers at the same place they make payments makes great sense and simple workflows to enroll in these programs is essential.  

With the right technology and an even more customized approach, you can anticipate which customers may need extra support and suggest tailored benefits automatically. For example, if a household is enrolled in SNAP benefits, you can proactively provide them with information about other financial assistance for which they may qualify and automate parts of their application using validated information they’ve already submitted. 

2. Make it easy to enroll in payment plans.

Some households find it easier to pay small amounts toward their bill rather than paying it all at once. Promote payment plan options in the same place where you inform people how to pay or where they complete their payments. The execution of a payment plan can be as simple as letting people fill out a form to request payment installments, or as sophisticated as having people securely store a preferred payment method and enroll in auto-payments toward their bill.  

3. Provide a free way for people to pay their bills. 

Many governments and utilities charge a service or convenience fee to offset credit card processing costs. Some rely on 3rd party payment processing that assesses a convenience fee. Give your customers a way to pay their bills without incurring additional fees. This may include offering an online checkout option for people paying by bank account (ACH/eCheck), or an in-person payment channel that accommodates people who must pay bills using cash without assessing them a fee.  

4. Be transparent about penalty fees and how to avoid them.  

Let your customers know up front what your late fee policies are. Use plain, simple language to avoid confusion, and provide additional language options when possible. Communicate proactively about upcoming due dates and how a person can avoid penalties. For instance, let customers know if they can pay a portion of their bill in order to avoid extra charges, both online where they find their bill and via automated email or text alert.  

5. Make it easy for everyone to pay their bills on time.  

Your customers have different preferences and needs when it comes to paying their bills. Some may want to pay for everything from their smartphones, while other customers need to pay their bills in person, especially underbanked or unbanked customers that must pay bills by cash.  

Provide multiple payment options for every debt type to ensure you’re not placing undue burdens on any segment of your customers. 

Offering mobile-responsive web payments will help people easily pay online, even if they don’t have access to a computer. Simultaneously, self-service payment kiosks provide a secure and convenient option for people to pay in person using cash, card, or check. Kiosks can also provide 24/7 service so that your customers don’t need to take time off work just to make a simple bill payment.  

Equitable Access Truly Benefits All 

Local governments and utilities serve everyone in their community. This means providing essential services to all, and it also means keeping the needs of all customers in mind when collecting payments for fines, fees, and other bills. Prioritizing equitable access and a reduction or elimination of the barriers for people to make payments allows organizations to streamline vital revenue collection processes while providing a better customer experience for the people you serve. 

Learn more about modern payment technology and how it can help all of your customers and staff here

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