PCM Technology & Data Management Flashcards

A collection manager wants to use data analytics to identify which accounts are most likely to pay if contacted. This predictive modeling approach is known as:

Answer: Propensity-to-pay scoring

Propensity-to-pay scoring uses account attributes and behavioral data to predict which debtors are most likely to make a payment if contacted.

Skip tracing in debt collection refers to:

Answer: Locating a debtor who has moved or become unreachable using data search tools

Skip tracing uses data sources such as credit bureaus, public records, and address databases to locate debtors whose contact information is outdated.

Which data security standard is MOST relevant for a collection agency that processes consumer credit and debit card payments?

Answer: PCI-DSS

The Payment Card Industry Data Security Standard (PCI-DSS) establishes requirements for any entity that processes, stores, or transmits payment card data.

A collection manager reviewing system reports notices a high 'not in service' (NIS) rate for phone numbers in a new portfolio. What technology solution best addresses this?

Answer: Implement a phone number scrubbing and validation service before loading accounts

A phone number scrubbing service validates and updates phone numbers before they enter the dialing queue, reducing wasted call attempts on bad numbers.

In the context of collection agency data management, what is a 'right-party contact' (RPC) rate?

Answer: The percentage of outbound calls that reach the actual debtor rather than a third party or voicemail

RPC rate measures how often collectors successfully reach the actual debtor, making it a key efficiency metric for dialing campaigns.

A collection agency uses an omnichannel communication platform. Which compliance requirement must be configured FIRST before launching text message (SMS) campaigns?

Answer: Obtain and document consumer opt-in consent for text communications under TCPA

TCPA requires documented prior express written consent before sending collection-related text messages to consumer mobile phones.