Just like everyone else, you’re being flooded with credit reporting disputes. Disputes volumes continue to exhaust dispute processing operations. And volumes and complaints continue to rise. In 2021, the CFPB received more than 500,000 credit or consumer reporting complaints as compared to 319,000 in 2020 (roughly 57% increase).
If done right, you can use our 3 key elements to increase disputes management efficiency.
Consumer reporting disputes are rolling in fast. Your team is moving through cases, sorting documentation from multiple sources, and doing their best to avoid discrepancies or data mistakes that could lead to unhappy customers and complaints to regulators. You’re wondering how to streamline the disputes process so that you can manage more volume without overtaxing your agents.
The good news is that we’ve seen many ways dispute management teams can make their operations more efficient. Several tactics are cost-effective and won’t burden existing IT infrastructure.
But there are three key areas that will help you gain traction and up to 30% efficiency. We’ve recommended this seamless approach to clients from dozens of engagements in disputes management.
1. Disputes processing effectiveness
2. Data quality management
3. Forecasting and planning
Your dispute processing effectiveness is a good indicator of operational efficiency. There are two ways to ensure that end-to-end, your disputes processing is as effective as it can be.
First, deploy a dispute case management system. Your system should allow for automated uploads of indirect disputes from e-OSCAR® and input of direct disputes manually or automated from other systems. Additionally, the system should populate dispute cases with data from all relevant systems of record. That way, all borrower disputes are visible in a single system, eliminating the need for cross-referencing in multiple systems. The workflow solution also eliminates time-consuming manual input, while reducing errors with efficiency improvements that can range from 10-50% depending on your current situation.
The success of your case management system relies on how you use it.
So, second, after you deploy your system, turn your focus to the tools within the system to further efficiencies.
Focus on implementing a dispute queue structure and consolidating duplicate disputes within your system. Both will help you and your team “trim the fat” – cutting down on excess and redundant work. Look out for a future blog that details how to do both of these things.
The importance of furnishing data quality and accuracy can’t be understated. When furnishing accurate data to CRAs, you have peace of mind that you’ve reduced your compliance risk and overall disputes volumes.
Adding systematic reviews of data and coding into your data quality management routines will confirm your furnished data is accurate. We tell clients they should be performing routine comprehensive data assessments and we suggest conducting Metro 2® code mapping reviews to certify alignment between system of record and furnished data.
For ongoing support, Bridgeforce Data Solutions offers a comprehensive, automated tool – the Data Quality Scanner (DQS) – that helps you proactively self-identify and resolve account-level discrepancies before they become disputes, complaints, or regulatory risks.
Performing routine assessments coupled with DQS can achieve up to a 30% decrease in disputes rate. To learn more about Bridgeforce Data Solutions and their Data Quality Scanner (DQS), visit their website here.
The last recommendation to boost disputes management efficiency is to make sure you understand your process and the way your team operates by consistently evaluating your internal dispute processing.
Analyze volumes and processing time by dispute type. For example, the most voluminous dispute type might be “account isn’t mine,” or your team might take the most time to resolve late payment disputes. Or, dealing with a multitude of repeat disputes could be dragging down your efficiency.
Whatever the case, knowing what you’re working with sets you up to forecast volumes and evaluate the efficacy of current processes. Calculate whether your methods as they stand can keep up with current demand, or if they’re being stressed. Use this to review processing changes and assess further efficiency opportunities.
With this evaluation, you can segment disputes to establish more streamlined processing and consider new strategies for handling different types of disputes. Additionally, an overall assessment facilitates understanding of processing gaps to identify issues early on and ensures compliant processing.
We have always seen gaps when it comes to comprehensive dispute management. That’s why Bridgeforce partnered with PMG to create the Case Central™ Dispute Management solution. Case Central™ is an off-the-shelf case management solution that provides a centralized place to organize and store all the information, communications, and files related to a disputes case.
Case Central™ also automates complex workflows involving data uploads, reasonable investigations, dispute processing, team management and much more. This automation increases your disputes accuracy while significantly reducing FTE time. The low-code, cloud-based solution can be configured for you in 3-4 weeks and it pays for itself in just a few months. Learn more about Case Central™ here.
Bridgeforce can conduct an end-to-end dispute processing assessment, design effective best in class processing strategies for implementation, facilitate regression testing and provide expert guidance to address your organization’s dispute management needs.
Contact us – and our Disputes experts will be in touch with you soon.