Debt Collection Techniques–Giving the Debtor the Low-down
by Jim Finucan
Published on this site: December 14th, 2005 - See
more articles from this month
Just as a debtor has an obligation to pay his debt to you,
you also have an obligation to him. You need to make the debtor
aware of the possible consequences of letting a bill get to
the point where it has been or might be turned over to a collection
agency. Those consequences include having a black mark placed
on their credit report. That could affect the debtor's credit
report for the next seven years. Not only do loan companies
look with disfavor on people with bad credit ratings, anyone checking the credit of a job
applicant would not be feeling positive about hiring that
person. Don't forget to mention this job aspect to the debtor,
especially if you're dealing with a college student.
Other fallout of letting a debt get out of hand is the chance
that legal action could be taken and a judgment issued and
then used to garnish the debtor's wages or his bank account.
Note that you should not bring this possibility up with the
debtor unless your office reserves the right to take legal
action.
Never say anything to the debtor that you do not mean. If
the debtor says:
"Don't call me at work anymore." (Remember this
is a "cease.")
"Why not"
"Cruz I could lose my job!"
"Are you listening to me Harold? What are they going
to say if garnishment papers arrive with your name on them?"
Stay cool but include a touch of concern. Once you have informed
the debtor of what could happen you can talk about solutions.
You can become the "answer person" who is able to
help the debtor out of his financial troubles.
Let 15-year collections pro Jim Finucan show you how
to double – even triple - the amount of money you collect
from your accounts receivable. Check out his unique collections
manual "Past Due" shows you how to handle all their
excuses. For more information visit: http://www.tiare.com/pastdue.htm
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