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RMS (Receivables Management Services) helps U.S. creditors recover overdue payments and manage debt portfolios. They operate as both a collection agency and a buyer of non-performing loans. Here's what you need to know:
RMS balances efficient recovery with ethical practices, making it a key player in debt collection and portfolio management.
RMS Debt Recovery Process: 3-Phase Escalation System
RMS employs a structured escalation process to recover debts effectively. It begins with non-litigation contact, where debtors are approached through letters and phone calls from an attorney's office. These communications avoid any threats of legal action and aim to encourage voluntary repayment using various outreach methods.
If the debt remains unpaid, the process moves to pre-litigation. At this stage, debtors are notified of the possibility of legal action. As a final step, RMS may escalate to litigation, filing a formal lawsuit through its partnership with a network of law firms across the country. This phased approach allows creditors to decide how aggressively to pursue recovery, depending on the debtor's response and their own preferences.
RMS handles a staggering 1.5 million claims annually, managing over $1 billion in collections. The company leverages advanced debt collection software and data-driven tools to optimize the workflow for account representatives, boosting productivity. Additional tools like skip tracing help locate hard-to-find debtors, while credit bureau reporting serves as an incentive for payment. Clients benefit from secure online portals that provide real-time access to collection updates, including payment summaries and collector notes.
This entire process operates within a framework of strict regulatory compliance.
RMS pairs its systematic approach with a commitment to ethical practices. The company complies with the FDCPA and regulations set forth by the CFPB, FTC, FCC, and state Attorneys General. Employees receive thorough training from in-house legal experts to ensure adherence to both federal and state laws, balancing effective recovery with ethical standards.
"Compliance is the foundation of everything we do. By prioritizing the consumer experience, we have achieved high consumer satisfaction."
– Receivables Management LLC
RMS also implements measures to protect consumers, such as adhering to prohibited contact hours (no calls before 8:00 AM or after 9:00 PM) and promptly handling cease-and-desist requests. All calls are recorded to ensure quality and compliance. The company’s Customer Advocacy Group addresses account-related concerns, striving to respond to messages within 48 business hours. Additionally, RMS provides disclosures tailored to specific state laws, including California's Rosenthal Fair Debt Collection Practices Act and Colorado's cease-communication rights.
RMS enhances its debt recovery process by combining personalized communication with cutting-edge technology. Their approach includes reaching out to debtors through letters, phone calls, emails, and SMS, ensuring communication happens via the debtor's preferred method. This strategy not only protects the client’s reputation but also emphasizes empathy in interactions.
In April 2015, RMS took a significant step by adopting PDCflow's "Flow + Payments" technology. This switch from traditional paper checks to digital payment requests through text and email was a game-changer. Collectors could secure signed recurring payment agreements in just minutes, speeding up payment cycles and minimizing manual effort.
"It's nice consumers are able to pick the date of each month that the payment will work for them. Our collector doesn't have to waste time looking back into the file. We're able to just kind of forget about that account until it is paid in full."
– Liz Colwell, Administrator, Recovery Management Solutions, LLC
RMS also offers online self-service portals, giving debtors 24/7 access to account details and payment options. This not only reduces call center traffic but also provides flexible payment plans tailored to individual needs.
To complement these efforts, RMS integrates advanced technology to streamline and optimize its collection strategies.
RMS remains focused on ethical and compliant practices while leveraging technology to improve recovery rates and operational efficiency. Their use of AI-powered workflows automates outreach across multiple channels - SMS, email, and voice. These efforts are supported by integration with platforms like DebtNext, Latitude, and NeuAnalytics, ensuring centralized and efficient response management.
To comply with Regulation E and the EFTA, RMS requires real-time eSignatures for recurring ACH authorizations. This practice not only protects consumers but also creates a secure audit trail for the agency.
Modern recovery software plays a vital role in boosting results. It can increase recovery rates by 10–15% while cutting operating costs by 40–60%. With routine tasks automated, collectors can focus their attention on high-priority accounts, making the entire process more efficient .
RMS offers secure, web-based portals that provide clients with 24/7 access to their accounts. These portals allow debt buyers and sellers to monitor payments in real time, review collection histories, and access collector notes. This level of transparency minimizes the need for constant back-and-forth communication through phone calls or emails.
The system also generates key reports - such as active account, trust, and performance documents - automatically. These are delivered securely via FTP transfers, enabling faster and more reliable data integration compared to traditional paper-based methods. Debt sellers can submit new accounts through secure FTP, email, or direct integration with loan servicers, streamlining the process further.
"Clients are able to access their accounts via our web site in order to view payments, collection history and collector notes." – Recovery Management Services, Inc.
To ensure financial records remain consistent, RMS facilitates electronic remittances that are sent directly to a client's loan servicer. This reduces manual data entry errors and ensures all records are synchronized. The platform's flexibility also supports a wide range of account types, making it suitable for managing complex portfolios across various industries.
All these online tools seamlessly integrate with RMS's broader debt portfolio management system, creating a cohesive experience.
RMS works directly with client loan servicers to enable a smooth flow of data. This integration automates account placement and remittance data transfers, eliminating the need for manual intervention and making large-scale portfolio management more efficient.
The system uses proprietary debt collection software powered by data matrices to manage account representative queues. This technology optimizes productivity by prioritizing accounts for collectors while controlling the frequency of debtor contact. Additionally, audit management software supports client audits and ensures compliance with regulatory requirements.
"Our highly structured and closely monitored systems control the frequency of collection activity while data matrices drive account representative queues to maximize productivity." – Receivables Management Services
RMS also automates credit bureau reporting to major agencies like Experian, Equifax, and TransUnion. This ensures that portfolio status updates are consistently reflected across the financial ecosystem without requiring manual submissions. Together, these tools allow debt buyers and sellers to manage portfolios more efficiently while maintaining precise, up-to-date records.
RMS demonstrates an impressive ability to manage large-scale debt portfolios, handling approximately 1.5 million claims annually and overseeing collections exceeding $1 billion. This makes it a strong partner for creditors and debt buyers dealing with substantial portfolios.
The agency's use of advanced technology boosts operational efficiency. Features like e-signature tools and automated payment workflows reduce the need for manual intervention, making processes smoother. Additionally, secure online portals allow 24/7 access to account details, payment histories, and performance reports. This transparency helps both debt sellers and buyers keep track of portfolio performance in real time.
RMS also provides bilingual support in English and French, which can expand its reach. Its sales-focused approach prioritizes positive interactions rather than confrontational tactics, helping to safeguard the original creditor's brand image. Furthermore, RMS operates as both a collection agent and a debt portfolio buyer, offering flexibility for creditors who may need recovery services or immediate liquidity from selling portfolios.
While RMS has its strengths, it also encounters several challenges. Over the past three years, the agency has faced 61 complaints with the Better Business Bureau (BBB). Common issues include frequent automated calls - sometimes as early as 5:00 AM - and voicemails that fail to clearly identify the company.
Legal issues have also arisen. In Coulter v. Receivables Management Systems, a court determined that RMS's collection letters violated the Fair Debt Collection Practices Act (FDCPA) by "overshadowing" the legal requirement for disputes to be submitted in writing. Such compliance errors can lead to legal risks for both RMS and the creditors they represent.
Another concern is data accuracy. Errors in skip tracing - such as contacting the wrong individuals due to outdated information - can waste time and resources, while also harming the original creditor's reputation. In some cases, this can even lead to harassment claims. Additionally, a written cease-and-desist request forces RMS to shift from phone outreach to slower, less effective mail-only communication.
State-specific licensing and regulations further complicate recovery efforts. RMS is licensed in only 42 states, meaning accounts in unlicensed states require alternative strategies. Variations in statutes of limitations (generally 4–6 years) and state-specific reporting rules also limit recovery options.
These challenges highlight the constraints RMS faces due to regulatory and operational factors:
| Challenge | Impact on Debt Recovery |
|---|---|
| FDCPA Compliance Risks | Legal penalties and judgments due to improper communication practices |
| Cease & Desist Orders | Slower recovery through mail-only communication |
| Skip-Trace Errors | Misallocated resources and potential lawsuits for contacting the wrong individuals |
| State Licensing Gaps | Limited recovery in unlicensed states |
| Statute of Limitations | Older debts (4–6 years) become legally uncollectible |
RMS offers a structured and efficient debt recovery system tailored for creditors and buyers. Handling around 1.5 million claims annually, it showcases the capacity to manage portfolios at scale. Its advanced technology ensures transparency, giving debt buyers and sellers the insights they need to assess portfolio performance effectively. This infrastructure not only supports operational efficiency but also highlights the importance of navigating regulatory complexities.
The company prioritizes a client-centered approach that protects brand reputation while optimizing recoveries. As Receivable Management Services Corporation states, "We recognize the importance of your institution's image and therefore employ positive reinforcement and professionalism as a means to an end. Creating adverse relationships is not a collection tactic". With tools like skip tracing, credit reporting, and nationwide litigation capabilities, RMS offers multiple avenues for recovery.
However, compliance remains a key consideration for debt buyers and sellers. Challenges such as FDCPA regulations and the typical 4–6 year statute of limitations on older debts require thoughtful planning when structuring portfolio purchases. These factors underscore the importance of adhering to ethical and regulatory standards.
For creditors seeking steady cash flow and debt buyers aiming to maximize returns, understanding RMS's capabilities and challenges is essential. By combining technological expertise with a focus on compliance, RMS serves as a valuable partner in debt portfolio management, especially when paired with platforms like Debexpert that streamline the portfolio trading process.
RMS functions in two capacities: as a debt collection agency and as a debt buyer. In simpler terms, they collect debts on behalf of other entities and also acquire debt portfolios, aiming to recover the amounts owed.
To confirm if RMS is handling a debt, you can reach out to their customer support team. Call them at (888) 807-2576 or send an email to help@rmscustomersupport.com. Alternatively, you can use their online dispute form for account-related questions. It's also a good idea to review any letters or account statements you've received from RMS, as these documents typically contain clear details about their collection activity. Taking these steps can help you stay informed about the status of your debt.
If RMS has contacted you in error, it's important to address the situation promptly. Reach out to their customer support team to resolve the issue and request that they refrain from further contact. You can do this through their dispute or request form, email, or by giving them a call. Make sure to include all relevant details to help clarify and resolve the matter efficiently.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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