From Debt “Collection” to Debt “Resolution”: How Self-Service Is Reshaping the Industry
The debt collection industry is increasingly adopting the language of “resolution” as firms expand self-service tools, simplify consumer communications and invest in education resources meant to reduce friction in repayment.
In TransUnion’s 2024 debt collection survey, 88% of debt collection companies reported offering a self-service online portal, up from 79% a year earlier. The survey also found that 25% of companies now collect more than 40% of their payments through online portals, signaling that digital workflows are producing meaningful volume across the sector.
The shift from collection-first to resolution-first operations
Executives and compliance leaders increasingly describe modern collections as an outcome-driven process focused on helping consumers complete repayment in fewer steps. The most visible change has been the rise of consumer-controlled experiences, where a borrower can review account information, understand options and act without needing a live phone conversation.
This shift reflects a broader reality of consumer behavior. In many financial contexts, people expect to manage sensitive transactions privately and efficiently, with clear confirmations and documentation. Collections firms are applying that same design logic to debt repayment.
Self-service portals become a primary repayment channel
Self-service is no longer a novelty. The TransUnion survey shows portals have become standard equipment in the industry, and many agencies now see substantial payment volume through online channels.
This model benefits agencies operationally. Portals can reduce call volume, standardize workflows and create a smoother handoff from outreach to payment completion. For consumers, the advantages often come down to timing and control. Online resolution allows people to review details and take action when they are ready, which can reduce avoidance and missed contacts.
Consumer financial stress raises the stakes for clarity and convenience
The move toward resolution is happening while many households report limited financial buffers and higher anxiety about money. The FINRA Foundation’s National Financial Capability Study reported that 46% of adults said they had set aside enough to cover three months of living expenses, down from 53% in 2021.
In public summaries tied to that same research, FINRA highlighted that 26% of adults spend more than their income and 63% say thinking about their personal finances makes them anxious. These conditions can make repayment decisions harder, especially when consumers feel uncertain about their options or fear making a wrong move. Clear digital pathways and educational support can lower that barrier.
Consumer feedback is driving service design
“Companies who ignore consumer feedback risk developing tunnel vision,” said Gerald Lewis, President of Plaza Services. “The simple act of listening keeps Plaza Services attuned to the needs of our consumers and sets us apart. We deliberately leverage consumer feedback and data to evolve and make our services more meaningful to our consumers.”
Lewis’ comments point to a practical change inside many agencies. Consumer experience is increasingly treated as an operational discipline. Feedback and behavioral data help firms identify where consumers get stuck, what language creates confusion, and which steps create unnecessary friction. Those insights can inform everything from portal design to payment plan presentation and outbound message tone.
Regulation F reinforces consumer control in digital communications
Regulation F, which implements the Fair Debt Collection Practices Act, has also influenced how firms modernize. The rule requires debt collectors who communicate electronically to provide a clear and conspicuous opt-out method for those electronic communications.
As digital channels expand, agencies have had to build communication practices that respect consumer preferences while maintaining consistent documentation. The compliance requirements around electronic outreach have helped push the industry toward more structured workflows that prioritize transparency.
Financial literacy gains traction as a resolution tool
As self-service grows, education has become part of the resolution narrative. Many firms are producing resources that explain basic credit concepts, repayment options and dispute processes. The goal is to reduce confusion and help consumers act with more confidence.
The same FINRA study indicates consumers are heavily digital in their financial lives, which supports the logic of pairing portals with content and guidance designed for mobile-first use. For agencies, education can reduce repetitive contacts and prevent misunderstandings that lead to delays or complaints.
What this rebrand means for the industry in 2026
The industry’s direction is increasingly clear. Recovery remains the outcome, but the methods now resemble consumer-facing financial services: self-service access, multi-channel engagement, and clearer guidance that supports completion rather than escalation. TransUnion’s data shows these tools are already widespread, and consumer financial stress indicators underscore why clarity and convenience can influence whether an account reaches resolution.
