10 Tips To Help Collect Past Due Accounts
March 11, 2010 by Mallory Megan
Filed under Finance
10 Tips to help you collect debt:
PREPARE: Review the paperwork on the debtor before making the call. Know the history of the account, credit record, the promises kept/broken. Have all records in front of you, ready for reference.
ATTITUDE: Adopt a straight, professional business-like attitude. You have a contract, you delivered the goods, money is owed, and you have a right to expect payment. Never let it become personal. Don’t yell or raise your voice; and NEVER swear. Don’t threaten; legal action is your recourse.
CONTACT: Make sure you’re talking to the right person. Don’t let the individual brush you off with “You’ll have to talk to the bookkeeper.” Identify the person who will pay the bill. If you cant get through after several calls, tell the secretary that you know your calls are being screened. Indicate the purpose of your call and if necessary give deadlines.
CONTROL: Always control the conversation. Keep it focused on the debt and on the repayment schedule. Do not let the debtor sidetrack you with personal history, excuses, etc. Remember, the objective of your call is to collect money, or get a commitment to pay not to become friends with the debtor or win arguments.
FLEXIBLE: Be ready to adjust to the situation. Think about the kind of customer you’re dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a customers circumstances.
NOTES: Always keep detailed, accurate notes of every contact with the account. Probe for further information on the customer. Notes of these contacts will help you in subsequent phone calls, and may be invaluable in litigation. Accurate notes will also help in further credit decisions, or in cases where skip tracing may be needed.
PRODUCTIVE: All call should be brief and to the point. This is a business call, not a social hour. View your efforts on a ratio of time expended to results achieved. A long conversation typically means the customer is stalling you, or trapping you in the buddy syndrome.
PRECISE: Never leave a contact open ended, such as “Well talk next week,” or “Ill send what I can.” Every contact should result in a commitment to payment. A specific amount, by a specific date, even the check number the customer is using to pay the debt.
TIME: The longer an account is outstanding, the less likely it is that it will be paid. If payment is not arranged or a payment plan is not established within 90 days, place the claim with a collection agency or start legal proceedings.
PLACEMENT: The best collection agencies do not need to pay money to get your information. Just type in “Collection Agency” to any search engine and pick a firm that ranks organically.
Mallory McGuinness is employed by a collections agency that works with a debt collection lawyer. She also composes stories on business and finance, the credit industry and collections agencies. Get a totally unique version of this article from our article submission service