If you’re considering outsourcing your debt collection to a third party, you’re likely to be inundated with unfamiliar terms and acronyms. You should always feel empowered to ask people to define those terms for you, but we’ve compiled a list of ten collections acronyms that Alacrity Collections uses.
FDCPA – The Fair Debt Collection Practices Act of 1977 is a federal law regulating actions that third-party debt collection entities may take in pursuit of collecting a debt. The law outlines the ways that collectors may contact debtors, as well as the number of times and time of day contact can be made.
FCRA – the Fair Credit Reporting Act of 1970 protects information collected by consumer reporting agencies such as tenant screening services, credit bureaus and medical information companies. Information in a consumer report can only be provided to someone who has a purpose specified in the Act.
HIPAA – The Health Insurance Portability and Accountability Act of 1996 is a federal law that created a national standard of protecting sensitive patient health information from being disclosed without the patient’s consent or knowledge. It also sets the standards for individuals’ rights to understand and control how their health information is used, with the goal of ensuring that individuals’ health information is protected properly while allowing the flow of health information needed to provide quality health care.
PHI – A patient’s protected health information is information that falls under the governance of HIPAA– that is, demographic information, medical histories, test and laboratory results, mental health conditions, insurance information, and any other data that a healthcare professional collects to identify an individual and determine appropriate care. When seeking to collect on medical bills, an understanding of what PHI is will be critical so as to ensure the collectors are compliant with HIPAA at all times.
Payment and Payer-Related Acronyms
EOR or EOB – Insurance payers must provide an explanation of review (EOR) or explanation of benefits (EOB) for each bill whenever an original claim is changed or adjusted by the insurance payer or the insurance payer’s reimbursement differs from the provider’s billed amount. There are usually time restrictions on how long the payers have to provide the EOR/EOB, and typically must be sent in along with their payment amount.
MUL – If a payer no longer lives at their address on file, and efforts at skip tracing have proven fruitless, the payer is referred to as moved, unable to locate.
SET – If a payer agrees to a settlement amount, you will likely see this acronym on records of their payment. This means they have agreed to pay a portion of the debt immediately, rather than the full amount over a span of time, in order to bring the account current.
BIF / PIF – This is a great collections acronym to learn, because seeing it on your records means good things! When a consumer pays their balance in full, or pays in full, their account will be marked as such.
ARM – Collections agencies operate in the field of accounts receivable management— that is, the process of ensuring that customers pay their bills on time. It helps you to prevent overdue payment or non-payment on the part of your consumer, and takes the headache of collecting past due payments off your plate.
More About Alacrity Collections’ Offered Services
Alacrity Collections is proud to be a leader in debt collections since 1982. Chasing overdue invoices is not an effective use of your time. Let our team help so you can work on running and growing your company. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect. We work tirelessly to protect your brand and improve your net returns. To learn more about our services and get in touch, please call us at 1-800-752-9663 or email us at email@example.com.