Posted by ReneeK_MI on 8/26/10 8:10am
Msg #350498

Debt collection 101 - first select the debtor wisely

Prompted by another poster's survey request, I did a little research this morning. Going back over the postings here just for August, I made note of any company posted about specifically for payment issues. Here's the math:

25 companies complained about specifically for payment issues
23 of those are represented in Signing Central, two I couldn't find in there
23 of those are Signing Services, 2 are title agencies

To average the 'star ratings', I didn't consider half-stars, but tallied those to the whole number only; makes this less than exactly accurate but good enough for the point. The reason I did that is because I was half done before I hit my first rating that had a half-star, and I wasn't going to start all over:

6 had *
10 had **
6 had ***
1 had **** (nothing current, I noted)
= Average rating of ** 2 Stars

Everyone can make their own opinions from the facts - mine is as it has been for years, the pattern seems so clear.

I just don't think it's as accurate to say the industry has "a payment problem" as it is to say that the industry has a problem selecting clients wisely, since that would be the source of the consequential problem of payment. I think we'd be far better off addressing the need for improving professional business acumen than discussing ways of chasing money after-the-fact, that are IMO far less than professional (such as contacting borrowers).

Rather than fixing problems over and over, it seems to me that it would be far better to simply prevent the problem to begin with.

Reply by jfs/IL on 8/26/10 8:24am
Msg #350499

The problem I noticed, is that people complain about what is expected from them when they negotiate there business options. If you do not want to follow the hiring party's instructions, just refuse to accept the job, or suffer the consequences for your payment due for not following instructions. We are self employed yes, however, we still have to answer to the party that hired us. Many times I have seen someone jump in and say "just follow their directives and leave it be"!.

Reply by CopperheadVA on 8/26/10 8:36am
Msg #350502

Totally agree, Renee! I have very few collection issues, because I simply don't accept jobs from companies with poor payment reputations. When they call me, I code them on my caller ID so I know not to even bother answering the phone when they call again.

I seem to have a collection issue about once per year, and it's usually with a brand new company that has no established history on this board.

Reply by MW/VA on 8/26/10 9:11am
Msg #350503

5 star post, Renee. I agree with you 100% on this one.

It took me a little while when I started in this business to get to that point, especially when I didn't have access to this forum & Signing Central. I've dropped companies that give me the runaround on payment. It's not worth the hassle. Thanks again for this post.

Reply by MichiganAl on 8/26/10 12:00pm
Msg #350552

Isn't that interesting that 23 out of 25 are signing services? I don't find that surprising, but to see it in numbers like that is really telling. I think it goes to what many of us have been saying for years about the value of working directly with the title company.

And yes, many of us don't have collection issues because we select wisely, research, and ask questions (I have one exception that I'm kicking myself over for trusting them).

And now my network partner, put the calculator down and start working on those other issues you're supposed to be working on this week!

Reply by ReneeK_MI on 8/26/10 1:25pm
Msg #350574

I'm so seriously busted .... =) n/m