How to Doube Your Debt Collections

Past Due! - A Debt Collecting Manual

It wouldnt surprise me to learn that you, as a business person, find it very difficult to pick up the phone and call someone who owes you money. Thats nothing to be ashamed of. Believe me, even we professional collectors who are on the phone all day sometimes wish we didnt have to make that next call. Its stressful stuff! But those calls are necessary evils, because if you dont make them, or dont hire a collection agency to make them for you (which takes a big chunk of what should be your money), its bad news for your bottom line!

I expect there are a couple of reasons why you hate making collection calls. First, youre never quite sure how to approach the debtor - youre uncertain about what you should say. Second, all too often you arent able to collect the money and that makes you angry and frustrated, so the whole effort turns out to be a negative experience.

Lets face it. There is no way a collection call is ever going to be a pleasant experience - for either party! But there are things you can do to help you feel more comfortable about making calls and, much more importantly, greatly improve your results. And, of course, each successful call you complete will make the next one easier to dial.

PROPER COLLECTION CALL FORMAT

Believe it or not the success or failure of your attempt to collect a debt is usually decided right at the beginning - with the very first words you utter after the other party says hello. Knowing exactly what youre going to say and approaching the call in an organized, professional manner is the foundation upon which your collections success is built. There are four elements in a professionally executed collections call:

Part One: The Open - This is the specific way in which you identify yourself, your company and the debt problem. Next comes the vitally important question of how you place that problem before the debtor. Dont ask him when hes going to get around to paying you, or why hes putting you off. If you ask a question like that youve made your move too early and youll find yourself at a disadvantage right off the bat. Its much more effective to put the debtor in the position of having to explain himself. Instead, say something like "What are your intentions toward this bill?"

Part Two: The Facts - If the debtor doesnt agree to pay the bill early in the conversation, move into the next part of the call: asking the debtor a series of questions aimed at getting information about his situation - his job, whether the spouse is employed, any outstanding loans he may have, credit cards, etc. It is very important to make the transition into this part of the call as smoothly as possible because you dont want to alarm the debtor. Say something like "Let me just fill out an extension form."

Part Three: The Dun - Once your questioning has given you the information you need, you move into the "dun" (the demand for payment). With the information youve obtained you can now show the debtor a way in which he or she is, in fact, able to pay the debt. You know, for instance, that he can afford to put it on his MasterCard, or that she could qualify for a loan. Now youre in position to make your demand for payment.

Part Four: The Close - Whether or not the debtor has agreed to pay the debt, there is also a specific way you should end the call. And I dont mean "Gee, thanks, have a nice day!" or "Youve got your nerve..." Use an open-ended question designed to put the debtor on the spot; something like "Do I have your word on that?" If he has refused to pay or continues to dodge and delay remind him of how serious the situation is and make it clear that this isnt going to go away; the problem must still be resolved. Above all, be professional; dont lose your cool, dont insult, dont threaten. Save any threats of legal action until youve contacted the debtor several times without success and see no further options. And never threaten legal action unless you fully intend to follow through, otherwise you can be accused of harassment.

Collection calls are the bedrock of bill collecting. Its well worth spending the time and effort necessary to learn and use as many techniques as you can.

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About the Author

Jim Finucan has 12 years experience as a top gun professional bill collector. He is the author of "Past Due" - a Debt Collections
Manual. More info at: tiare.com/pastdue.htm

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info@tiare.com
http://www.tiare.com