Posted by Doris_CO on 11/16/11 2:31pm
Msg #404198
Tips on collection of debts.
Several people have asked for suggestions on collecting from a SS or Title company. These tips were in an e-mail I received today. The e-mail does refer to a credit collection debt recovery agency, which most of us probably won't use because the debt owed to us is smaller then what these agencies will accept. However, some of our peers have gone to court to recover what is owed to them, and that's always an option for the smaller debt.
Debt Recovery Tips for Better Collections
Debt recovery tips for creditors are an important source of knowledge, whether you as the creditor decide to go after the debtor on your own or if you decide to hand the defunct portfolio over to a third party credit agency. As a company, you must still have some in-house strategies for debt recovery so you can pass this knowledge through to the credit collection agency if and when you decide to use them. Debt collection tips can only help when making decisions regarding collecting debt.
Keep the Lines of Communication Open. When dealing with past due accounts, there are a few things to remember about the client or business that you are trying to collect from. First, most businesses will want to pay what they owe for fear of losing business, so staying positive when communicating with the businesses is imperative. A positive, yet firm approach is your best plan to collecting debt. Let the company know that their business is important to you. If the client is at least responding to correspondence or phone calls, you have some hope that the debt recovery process will work itself out.
Keep Paperwork in Order. From the very first phone call to the client, to the time that you turn the portfolio over to the credit collector, the debt recovery process should be completely documented. Look through any existing paperwork before making initial contact and ensure that all the information you will need to begin a conversation are at your fingertips for reference. You will want to know the history of the account, the credit record, and any communication that may have already taken place regarding repayment of the account. Detailed notes during any conversation will be invaluable to a credit collection debt recovery agency. The more intricate details you can supply, the more likely the success of the debt recovery agency. These notes will also be helpful in cases of litigation or skip tracing.
Keep Conversations Polite Yet Straightforward. First, make sure you are talking to the correct person. Whomever you are dealing with should be the one responsible for paying the bill. Probe for that information and then be precise in your request for payment. There is no need to listen to personal stories or excuses, but you should be prepared to be flexible. If the goal is to get paid, you need the correct information and you need to be able to adjust to the specific circumstances of the debtor.
Know When to Quit. The longer a debt is held, the less likely someone is to pay the debt. For this reason you should know when to turn the debt over to a debt recovery agency. If the debt has continued to go unpaid for over 90 days, it is unlikely that your efforts to collect the debt are working. This is when your notes, records, conversations and correspondence should be turned over to a credit collection agency. Your due diligence in recordkeeping will be invaluable in working with collection agencies.
|
