Law firm sees 43% payment growth despite legal procedure delays

Litigation used to be enough for driving a consumer towards debt resolution? But today's debtors need more motivation besides the traditional legal pressure which creates a crisis for law firms across the country.

"Firms file, they wait. They serve papers, they wait. They secure a judgment, they wait some more," says a managing partner at a mid-sized firm. "Meanwhile, collections rates keep dropping."

The problem lies in those massive gaps between legal actions where consumer engagement flatlines. For smaller firms without extensive call centers, these dead periods are killing collection rates.

Inevitable delays in litigation process

Regulatory changes like "early resolution progress" requirements have made a slow process even slower. This is devastating for firms working later-stage accounts, where litigation has always been the primary tool.

The equation is brutal: longer gaps = colder accounts = lost revenue.

Digital is the bridge (When done right)

Leading firms aren't just adding technology, they're using digital strategies to maintain engagement during those inevitable legal delays.

But here's where many get it wrong. One debt buyer learned this the hard way after investing thousands in sophisticated email campaigns. Great open rates but terrible results. Why? Their payment portal was so confusing that consumers immediately picked up the phone instead, defeating the entire purpose.

The lesson? Digital channels must work together seamlessly.

Five keys to digital collections success

1. Foundation first, your payment portal

If your portal isn't intuitive, nothing else matters. Consumers need to:

• Understand their options immediately

• Create custom payment plans

• Negotiate within your parameters

• Complete transactions without frustration

One firm described their old portal as "actively pushing people back to the phone." (Not exactly what they had in mind)

2. Legal milestones = Digital touchpoints

Sync automated outreach with legal events while respecting compliance:

• Consumer gets served? Automated follow-up using Reg F limited-content messages

• Judgment secured? Digital reminder campaign respecting state-specific consent rules

• Post-judgment action? Targeted outreach within TCPA guidelines

This maintains engagement without crossing regulatory lines.

3. Segment everything

Your California accounts face different rules than Texas. Winning firms segment by:

• Account characteristics and age

• Consumer demographics and consent status

• Engagement history and communication preferences

• Legal stage and applicable regulations

Then customize channel, timing, message, and offers accordingly.

4. True omnichannel (Not just multichannel)

Having email AND text AND a portal isn't enough. True omnichannel means:

• Someone checks a payment plan on your portal? Your next email follows up on that specific plan

• They open emails but never click? Switch tactics

• Everything works together, not in silos

As one executive put it, channels should be "operating in unison, synchronized, playing off one another."

5. Measure everything that matters

Most firms have "very little insight into what's driving anybody to do anything." The winners track:

• Which messages drive portal visits

• What portal features lead to payments

• How different segments respond

• Peak engagement times

Without this data, you're guessing.

The numbers don't lie

One boutique firm saw self-serve payments surge 43% within 90 days of implementing these strategies. Email engagement? While the industry limps along at 9%, top performers hit 35-55%.

Small shops are suddenly competing with industry giants, not through size, but through smarter digital engagement.

Your next move for legal collections success

The legal collections process has fundamentally changed. Success no longer belongs to just the biggest firms, but to those who've mastered modern collections strategies.

The winning formula:

• Smart infrastructure - Portals that reduce calls, not create them

• Compliant automation - Strategies that respect Reg F and state rules

• Precision targeting - Treatment based on account specifics

• Channel orchestration - True integration, not just coexistence

• Data discipline - Continuous optimization based on results

The legal process keeps getting slower. But while you can't speed up the courts, you can keep consumers engaged during those gaps.

Firms that bridge these timeline gaps while maintaining compliance are seeing dramatic recovery improvements. Those that don't will watch their recovery rates and revenues continue to decline.