Millennials Don’t Want Your Calls: Time to Rethink Debt Collection

Introduction:

Over the past two decades, I've had the privilege of watching the debt collection industry evolve. In the early days, it was all about strategies, numbers, and trying to guess which payment method a delinquent customer might prefer. I remember when we used data-driven strategies to predict when and how customers would engage with us. Whether I was working with an external debt collection company or a credit provider, the goal was always the same: understanding how a customer would respond and which payment tools they’d use. Fast forward to today, and we are still using many of the same approaches.

However, it’s time to challenge the status quo. In 2020, many companies (and I mean a lot) were all about "mobility." It was all about mobile phones—customers applying for loans, managing accounts, or even making payments with a tap of the finger. It was supposed to be a digital-first world.

But here’s the irony: When it’s time to collect payments, many credit providers are still relying on calling customers on their phones. That’s right—the same phones they’ve been using to tap away and make payments. It’s a strange disconnect that needs our attention.

So, let’s talk about millennials. Born between 1981 and 1996, these individuals now range between 29 and 44 years old, and they’ve grown up in a world that is digital-first—whether it’s WhatsApp, social media, or emails. They expect fast responses and prefer short, concise, and visually engaging messages. They appreciate open, transparent communication and want personalization. And, most importantly, they expect flexibility in how they interact with businesses—starting on one platform and continuing on another without missing a beat.

This brings me to the crux of my point: If you’re in the debt collection industry and you’re still calling millennials on the phone to follow up on late payments, you might be missing the mark. It’s time to adapt to their preferences, align your business with their communication style, and watch how your payment recovery rates improve.

The Disconnect:

We’ve all seen how companies have leveraged mobile technology to make things more convenient for customers—mobile apps for loan applications, mobile payments, you name it. Customers can do everything on their mobile devices—except when it comes time to make good on what they owe. Then, we revert to phone calls, emails, and sometimes even letters. Why?

Sure, there’s a place for traditional methods, but why not think outside the box? Why not consider how millennials prefer to communicate—through instant messaging, emails, or even chatbots that provide 24/7 service? These are the channels that millennials gravitate toward in their everyday lives. They’re fast, efficient, and cater to their need for immediacy.

I have a 36-year-old daughter, a 31-year-old son, a 24-year-old daughter, and a 23-year-old daughter. If any of you reading this have children around these ages, you’ll understand how difficult it is to get them to answer your call—especially if my kids owed you money. Even if you do manage to get in touch, they’ll likely want to pay either immediately or on their own terms, using the solutions available on their phones. If you’re forced to set up a debit order, good luck. Their disposable income is their power right now.

Do you own some of those phones? I don’t know about you, but time to get real: most people I know in this age category are hustling, earning income from multiple sources, and paying who treats them best. People want convenience, options, and flexibility—especially when it comes to money. They Google their rights and are fully aware that most of you can’t use the legal system against them because it’s biased, slow, and outdated. They don’t care about their credit score either.

Let’s be real here: if you’re still stuck in old ways, I’m afraid you’ve missed the boat. As an industry, we’ve been too busy patting ourselves on the back for our old-school strategies. But let’s face it: diallers and call campaigns are becoming relics of the past. It’s about time to rethink your approach.

The New Era of Debt Collection:

This isn’t just a passing trend. Millennials are driving the shift in how we communicate, and debt collection isn’t immune. In fact, it's ripe for disruption. So, let’s stop being arrogant as collection professionals. The customer is the one driving the game now. They’ve migrated away from dialers—sometimes they don’t even have time to pick up the phone—but they will answer messages that are relevant to them.

The solution isn’t forcing a one-size-fits-all approach. It’s about offering tailored solutions using the channels your customers want. Whether it’s WhatsApp, email, or a chatbot, it’s crucial to meet your customers where they are. If you don’t, someone else will.

The Call to Action:

The truth is, your customers are telling you how they want to engage. They’ve been telling you for years. It’s time to listen—not just to their wallets but to their preferences. So, as we continue navigating this digital age, I urge you to stop and think about your communication strategy. The tools are at your fingertips, and the data is there—let’s put it to better use.

We have an opportunity to break free from outdated strategies and focus on what really works. The question isn’t whether we should adapt; it’s how quickly we can.

Let’s stop decelerating the process with old-school methods and start accelerating by meeting customers where they are.

Conclusion:

It’s time to be bold. The digital-first generation is already here, and they don’t want your calls. But they do want your solutions—just on their terms. The ball is in your court. The question is: are you ready to embrace the future of debt collection?

Let’s get the conversation going. If you agree, disagree, or just want to poke the bear a little, let’s chat. I’m all ears. The future is now, and it’s time to evolve.