How to Build an Effective Verification Waterfall
What each step means, and how to choose the right vendors
When you’re in charge of recovery results for your company, it can be daunting to consider all vendor options. We’re going to walk through the steps of building an accounts receivable data waterfall that works for your company.
In addition to verification services, many companies use a data vendor to obtain large blocks of consumer contact information. This typically a first step in their waterfall process.
Choosing a Validation Vendor
Many companies, depending on industry, do not use validation. However, with TCPA lawsuits so common and costly, validation is a product that can save you time and trouble. A validation vendor calls phone numbers provided by you. Before your company calls, you will be able to know whether the phone number reaches the intended party.
When choosing a validation vendor, find one that abides by TCPA and FDCPA laws. The vendor needs to have airtight compliance to properly lessen risk for your company.
Make sure that you have professionals within each area of expertise speak with one another. For example, your compliance people need to communicate with the vendor’s compliance people to properly align relevant processes. These are important areas that require technical expertise. You need to make sure the company will work for your interface and methods.
Choosing a Skip Tracing Vendor
The next step for many companies is usually skip tracing. If the data vendor’s data is found to not be 100% accurate during validation, you need skip tracing. At this point in your waterfall, you need Right Party Contact.
Among Right Party Contact vendors, there is a lot of variation in service and quality. There are many options, and it can be overwhelming. A great way to find a perfect fit is searching based on your industry. If the vendor routinely works with others in your industry (example: medical, or Fortune 500 retailers) there is a good chance they will be able to get great results for you. The vendor will also be aware and up-to-date with your industry’s specific information security and legal compliances.
If the vendor is using robocalls to verify consumer contact information, their results may not be as effective as live agents. They could potentially put you at risk of TCPA violations since they are acting on behalf of your company.
Make sure that your RPC vendor is obeying TCPA laws and has proof that their results and compliance are better than competitors.
Choosing a POE/VPOE Vendor
By this stage in your waterfall, you’ve likely exhausted most of your options for contacting a consumer directly to set up a payment plan. Instead you have to take the necessary steps of performing a wage garnishment.
When looking for a POE and VPOE provider, look for tangible proof of results, like revenues generated and typical ROI for the products. Another good indicator of a fruitful vendor will be results achieved for similar companies to your own. Since the products are the most direct way of obtaining income, what matters most is the accuracy of the accounts you’re contacting, and getting high hit rates.
Look for a provider who will have excellent compliance and allow you to stay aware of the hit rates you’re getting. Reporting is essential, and will help ensure that you have the quality you need to successfully perform wage garnishments.
Streamlining your Waterfall
If you can streamline your waterfall by choosing a vendor that does several different services, you’ll be able to save time and money. Most vendors will have several different services available, and you might be able to get a discount if you’re doing a large volume.
Keep in mind that checking for compliance is important, no matter what services your vendor is completing for you.