How to be Successful Debt Collectors
Sometimes a small business may bite off more than they can chew. This occurs often, especially with new companies trying to get their name out there. Unexpected bills, charges and fees just start piling on.
Common knowledge dictates that once you are behind on payments, the late charges start to kick in. Some credit card or utility companies are much worse than others. Their tactics are harsh and unreasonable.
There are laws to protect consumers against predator type tactics. However, many small business owners do not know their rights and even more do not have business attorneys that they can turn to, during emergencies like this. So it becomes a matter of learning the hard way.
Tips and Recovery Tactics Advice
Once the account of a business is 60 days behind the account is then sent to a collection agency. The agency will begin reaching out to the debtor. The way in which the collection agency goes about this process is important and it could be a matter of breaking the law.
Here are a few steps in which an agency will go about seeking payment for a debt.
a.sending a letter
c.reducing the amount
d.filing a judgement
Once the account is in the hands of a collection agency they will send what is called a Demand letter. It is very important that the Demand letter contains certain information. The amount of the debt, the name of the company whereas the debt was created, the date and other information.
This information should help the debtor recall the issue. If the debtor does not recall the situation, they have a right to dispute it. The collection agency then has no choice, by law, but to halt all further collection steps until the claim has been verified. Debt Recovery Services
fully understand that every debtor has rights and the company must abide by them
Once the bill has been verified and the proof has been sent to them, the agency may proceed. It is always advised that collection agencies do not skip this step. Consumer protection rights will be on the side of the debtor each time.
Calling a debtor is the main tool used by debtors to collect a debt. The agent must not engage in threats or use intimidation ta tactics. They must stay professional at all times, regardless if the debtor becomes irate themselves.
One tip would be to put themselves into the shoes of the debtor. This person has a bill that they simply can not pay. They are perhaps on the verge of losing their small business and now here you are calling them. Most Debt Recovery Services have training programs to keep the conversation less argumentative.
Try to relay the sentiments of,’It’s not personal’. This is a business call, it’s not a person. The call should be brief and straight to the point. The collector may want to limit the calls to one a day. If their attempts exceed that, they could complain about being harassed, which would put the agency in a bad light.
After a few tries, the collection agency may attempt to negotiate the total costs of the debt. After all, if the individual can avoid debt from going on their credit by paying half of it, that’s something to consider.
And then last a collection agency may find themselves taking the debtor to court if all else fails. The company will have to decide whether it is worth it to file a judgement. It is advised, prior to filing a judgement, be sure the individual had the money. If the debtor doesn’t have the money, the judgement may not be beneficial.