Find out how a debt collection agency can be less mean, and more
successful. These days, businesses and collection agencies are becoming much
nicer about asking for their money. That's because people are much more willing
to handle their financial obligations if they don’t feel forced or threatened to
pay up. Greeting cards and friendly phone calls are among the most popular
methods debt collection agencies use, and these tactics seem to be doing the
trick.
Why Gentler Collection Works
Youth. In order for debt collection to be effective, it’s important
for the businesses who are collecting the debt to realize that younger people
are a little less intimidated by the aggressive approaches that older citizens
have been accustomed to, which is another reason why the gentle debt collection
approach is working so well. Another reason younger people are less amenable to
more aggressive collections: those who are new to the 'real world' may need to
learn a little more about debt and credit in order to make better financial
decisions in the future.
Law. Debtors are becoming more aware of debt collection laws that protect
them from harassment, thanks in no small part to the internet's wealth of
information on the subject. Legally savvy but less-than-honest debtors can make
trouble for even the most law-abiding debt collectors. Legally savvy collectors,
in turn, are realizing that the best way to stay clear of the law is to make
sure their debt collection practices stay far clear of the legal definition of
harassment.
For instance, the telephone is a potential minefield. Even though
calling debtors at work is not completely off-limits, at least if you only
do it once, it may be safest to make sure you are only calling the home
number.
Calling too late in the evening is also a no-no. Make absolutely sure
you know what time zones your debtors are in and keep any calling lists
separated by zone, or else assume they're all on Eastern. A 6 p.m. call to a
debtor you think is in Washington State that actually turns out to be a 9
p.m. call to a debtor in Washington D.C. could land you in court facing a
harassment suit.
Negotiation and cooperation are the new buzzwords of collections–or
asset recovery, if you're into buzzwords–and both are difficult if you
insist on being overly stern with a debtor.
Bankruptcy. A debtor who feels overwhelmed may file for bankruptcy–yet
more reason to take negotiation and cooperation to heart. Make sure your
debtor knows that you are truly sincere about any repayment plans you may be
offering.
In short, as angry as you might be at not being paid, try not to let it show.
Remember: it's better to take a load off your balance sheet by being polite than
to take a load off your chest by venting your frustrations.
Please note this website site not intended to give
legal advice and may not be complete or up to date with the most current
collection laws changes.
