DEBT COLLECTION TECHNIQUES –Giving the Debtor the Low-down
By Jim Finucan
© Tiare Publications
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.
(End)
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
