Debt collection is an ugly subject. Detroit-based startup HealPay hopes to make it a little less so —and to make debtors feel empowered — with their flagship collection service, SettlementApp.

The system, said co-founder Erick Bzovi, is “designed to make it easier for consumers to pay their bills. By giving consumers options to pay over time or in advance for a discount, businesses see a higher conversion rate.”

The problem they set out to solve was one of accounts receivable. Client creditors — mostly collection agencies and attorneys, as well as some financial institutions and commercial real estate firms — direct debtors to the SettlementApp traffic portal, where they are given a choice of targeted payment plans. If all goes well, more people choose to (and are able to) pay up.

Still, debt collection can be an ethical and emotional minefield, which is one reason HealPay works with original billers as well as third-party agencies.

Read the rest here: http://techli.com/2012/07/healpay-debt-collection/