Wednesday, November 21, 2007
Monday, November 19, 2007
The longer you wait...the less you collect!
Latest Industry Statistic
- Courtesy of Sanders and Douglas, Tucson Arizona
The results of the surveys clearly demonstrate the critical importance of taking positive action when an accounts receivable ages past its due date.
The chart graphically illustrates the critical importance of taking early action when an account receivable goes past due as, even after only three months, the probability of collection drops to 73.1%, and after six months to 50%. At one year past due, there is a 75% chance that the delinquent account will never be collected.
Latest Industry Statistic
- Courtesy of Sanders and Douglas, Tucson Arizona
The results of the surveys clearly demonstrate the critical importance of taking positive action when an accounts receivable ages past its due date.
The chart graphically illustrates the critical importance of taking early action when an account receivable goes past due as, even after only three months, the probability of collection drops to 73.1%, and after six months to 50%. At one year past due, there is a 75% chance that the delinquent account will never be collected.
Got customers who are turning into debtors and running over the hills with YOUR money? We recommend you take action today and use the services of Sanders and Douglas...
ASSET & LIABILITY INVESTIGATIONS
SANDERS & DOUGLAS realizes the financial status of a subject company is critical to the success of our collection effort. The ability to gather timely and useful information will enable us to recover your funds. The Asset & Liability Investigation accomplishes two-fold. First, the investigation provides a financial profile and the solvency of a debtors company. Second, it allows the client to determine the cost effectiveness of possible litigation prior to an initial suit. Determining the debtor company assets will assist our clients' legal counsel when judgments are sought.
PRIVATE INVESTIGATORS
SANDERS & DOUGLAS believes that placing someone at the debtors' place of business and informing the company of an ongoing investigation is the most powerful singular step in the direct collection process. The initial step builds the foundation of our involvement and the urgency that the debt be addressed. The strength of our involvement as a third party insures maximum motivation for the debt to be resolved.
AUDITING & ACCOUNT SERVICES
SANDERS & DOUGLAS provides collections that are geared specifically for client retention. With this unique approach we contact your slow paying customers as either your accounts receivable management company or as your accounting firm preparing for year-end audit. Our specially trained collectors determine if there is any problem with the product or service, a pricing issue, invoicing, etc. Debtors are asked to research the issue and provide us with a specific date to cut a check to clear the matter. We end the call with a specific date for payment or uncover the problem hindering pay.
CREDIT COUNSELING
At SANDERS & DOUGLAS, our goal is to provide our clients with all our resources and experience to maintain a long mutually beneficial relationship. Our understanding of the Fair Debt Collection Practices Act and its variations in a multitude of countries allows us to provide clients with a working knowledge of their rights as creditors. Credit Counseling, Credit Policies, Credit Reviews and Legal Aspects of Credit Collections reinforce our commitment to analyze and recover debt in the most efficient and cost effective manner.
ASSET & LIABILITY INVESTIGATIONS
SANDERS & DOUGLAS realizes the financial status of a subject company is critical to the success of our collection effort. The ability to gather timely and useful information will enable us to recover your funds. The Asset & Liability Investigation accomplishes two-fold. First, the investigation provides a financial profile and the solvency of a debtors company. Second, it allows the client to determine the cost effectiveness of possible litigation prior to an initial suit. Determining the debtor company assets will assist our clients' legal counsel when judgments are sought.
PRIVATE INVESTIGATORS
SANDERS & DOUGLAS believes that placing someone at the debtors' place of business and informing the company of an ongoing investigation is the most powerful singular step in the direct collection process. The initial step builds the foundation of our involvement and the urgency that the debt be addressed. The strength of our involvement as a third party insures maximum motivation for the debt to be resolved.
AUDITING & ACCOUNT SERVICES
SANDERS & DOUGLAS provides collections that are geared specifically for client retention. With this unique approach we contact your slow paying customers as either your accounts receivable management company or as your accounting firm preparing for year-end audit. Our specially trained collectors determine if there is any problem with the product or service, a pricing issue, invoicing, etc. Debtors are asked to research the issue and provide us with a specific date to cut a check to clear the matter. We end the call with a specific date for payment or uncover the problem hindering pay.
CREDIT COUNSELING
At SANDERS & DOUGLAS, our goal is to provide our clients with all our resources and experience to maintain a long mutually beneficial relationship. Our understanding of the Fair Debt Collection Practices Act and its variations in a multitude of countries allows us to provide clients with a working knowledge of their rights as creditors. Credit Counseling, Credit Policies, Credit Reviews and Legal Aspects of Credit Collections reinforce our commitment to analyze and recover debt in the most efficient and cost effective manner.
Sanders & Douglas
120 S. Houghton Rd Ste 138-257
120 S. Houghton Rd Ste 138-257
Tucson, Arizona USA 85748
Email: Collections@SandersDouglas.com
Phone: (520) 298-0861
- Tell them "Commercial Debt Collection Tips" sent you!
Email: Collections@SandersDouglas.com
Phone: (520) 298-0861
- Tell them "Commercial Debt Collection Tips" sent you!
More kick-ass articles on how to collect bad business debt!
Why a Collection Agency Is Your Small Business’s Best Friend--Really
Copyright © 2005, Steve Austin
Does the term “collection agency” put you on edge? If you’re like
many small business owners, the mountain of debt you accumulated
during startup might have been enough to make you worry about
collection agencies every time you answered the phone. But your
feelings toward collection agencies are eventually going to
change, if they haven’t already.
While no one wants to hire a collection agency, it’s a sad
reality of doing business that not every customer feels the need
to pay, or has the ability to pay all at once. If you want to
stay in business, you’ll need to collect that money. When your
most polite and not-so-polite reminders to pay have failed,
you’ll need to start getting serious, which means going to an
agency.
Small Business Collection Agency Services: More Benefits than
Costs
Small business collection agency services will certainly cost
more than just writing letters demanding your money back. But the
amount of money you’ll collect, not to mention the time you’ll
save, will more than pay it back. In fact, when you consider the
hourly rate of your employees, or you yourself, collection
agencies’ fees really can be quite a bargain.
Let’s say you have an assistant your business pays $10/hour,
effectively costing your business $15/hour once you count in
employment taxes, benefits, and the overhead of your office. You
would be lucky if that assistant spent just five hours total on
each debt, and managed to collect half of them. But you would
have sunk $150 into each successful collection. Plus, there’s the
opportunity cost: $150 worth of time you haven’t spent in growing
your business. So the net loss is $300, and probably more if
you’re a profitable business that gets a good return on your
people’s time.
But if you refer your delinquent debts to a collection agency
for $75 each, and they collect three-quarters of them, you’ve
invested only $100 per debt collected. Once you factor in all the
money from all the debts the agency collected for you that you
couldn’t have collected on your own, the return on investment is
huge. That’s not even counting the saved opportunity cost, or
all the stress you’ll save yourself and your associates.
In the end, your small business has to focus on doing what brings
in the money: your core business. Leave your taxes to your
accountant, your office repairs to your building manager, and
your collections to your small business collection agency.
Writer's Resource Box:
Steve Austin is a regular contributor to Collection Agency
Information (http://www.collection-agency-information.com),
a website with articles on choosing a small business collection
agency, along with reviews of agencies, with links to their
websites.
Collection Agency Secrets for Collecting on Bad Debt
Copyright © 2005, Steve Austin
Getting worried that one of your clients, customers or patients
will never pay? Have you given up on a customer who's essentially
said he won't pay? Congratulations--being stiffed by a customer
or patient is a milestone in the growth of a business or medical
practice. But even the most hopeless of bad debts can sometimes
be collected—collection agencies have been doing it for years.
Here are six of their secrets.
1) Don't Just Call, Write.
According to a leading collection agency, you're much more likely
to collect on bad debts when you send a series of collection
letters. Deep down, you probably know why collection letters are
better. It's the same reasons that would make you uncomfortable
placing such a call in the first place: 1) if a debtor knows why
you are calling they will avoid your calls; and 2) if you do get
them on the phone they will most likely have a bad attitude, or
just make excuses like 'the check is in the mail' to get you off
their back.
2) Don't Ask If, Ask When.
This leading also recommends that you try to get your debtor
to set a date for paying you back. The people who owe you money
may have been saying to themselves that they will get around to
paying you any day now. But tomorrow never comes, which is why
you need a specific date. When you call, start by asking to be
paid today, then negotiate from there.
3) Be Mice.
Courtesy is important because: 1) it lets you keep the moral
high ground; 2) it makes it likelier that you can establish a
cooperative relationship with the debtor for getting the debt
repaid; and 3) there are very strong laws against harassment in
the collections process and you do not want even to approach
their limits.
4) Be Cooperative
Remember: you and your debtor have one thing in common: you both
want this debt to go away. In particular, you both want you to
stop having to make all these calls and send all these letters.
With that shared goal you and your debtor can work together to
create a repayment plan. While a repayment plan may not be what
you had hoped, it's better than holding onto a bad debt.
5) Know The Value Of Your Time
The one thing that is probably keeping you from collecting on
your supposedly bad debt is your fear that the time you spend
collecting the debt may not be worth whatever you will recover.
This fear is justified; your time is valuable and maybe it would
be better spent on getting new business.
But don't just let this fear linger in the back of your mind,
fighting with the little voice that says you want your money.
To get a rough idea of how much time you can afford to spend
collecting the debt, and whether you have the time to do it at
all, sit down and write out a rough estimate of the value of your
time, the likelihood of collecting, and the amount you are owed.
For instance, let's say you are going to assign this task to an
administrative assistant whose time is worth $15/hour. The debt
is $1000. It is owed you by an old customer who is three months
behind but has never been seriously delinquent before, so you say
you have a 50% chance of getting the money, making the value of
the collection about $500.
You divide $500 by $15 and find that your assistant could spend
33 hours collecting the debt before it lost your company money.
However, you'd probably still feel a little unsure about whether
it was all worth it. Your feelings would be correct: there's
still the opportunity cost of all the work your assistant won't
be doing to keep your business moving. To be safe, you can also
estimate the opportunity cost at another $15/hour, which means
you can only really afford to have your assistant spend half as
much time, or 16 and a half hours. If you've already spent that
much time already, it's time either to call it quits or call in
the professionals.
6) Get A Collection Agency
The one secret the collection agencies know about collections
is the value their services deliver clients. Unfortunately,
businesses do not usually agree to write testimonials for their
collection agencies or even recommend them to a friend. If you
didn’t know that there are small business collection agencies
that will collect your bad debt for under $20, you have to admit
that leaving your collections to the pros is a pretty good
business secret. In short, you don’t want your bad debt to cost
you twice: once when you lose it, and again when you waste a
lot of your or your people’s time going after it. Going with
a collection agency can help you avoid either outcome.
How To Avoid Medical Collections
Copyright © 2005, http://www.let-no-debt-remain-outstanding.com, Steve Austin
Medical Collections True Tales: Confessions of a Dental Debt
Deadbeat
Medical collections are costing doctors millions. Here are the
secrets of why patients don’t always pay their bills, from a
real-life deadbeat.
With medical collections costing doctors millions upon millions
of dollars in unpaid bills and collection fees, many people have
just one question: Who are these people who are trying to stiff
the doctors who delivered them from great physical pain (or the
flu, hypochondria, not-so-white-teeth, or a nose that didn’t look
enough like Brad Pitt’s)?
Well, I’m here to tell you who these people are, or at least some
of them.
They’re me.
Yes, I admit it: I left a dentist’s bill unpaid for three months.
OK, so dentistry isn’t technically considered "medical," but it’s
the same situation: a doctor left in the lurch.
Why did I do such a horrible thing, especially when I, a small
businessperson myself, know how difficult unpaid debts can make
cash flow, and how it could very easily make me persona non grata
in that office?
Why Medical Collections Happen
Or, Possible Reasons for Me Being a Deadbeat
Here are reasons commonly advanced for why people like me might
not pay a doctor’s bill.
They don’t have enough money, plain and simple. After all, if
they couldn’t afford insurance, they probably are going to have
trouble with the bill.
They don’t care about the poor doctors and either don’t know
about or don’t care about the potential for damage to their own
credit ratings.
They are chronically lazy, stupid, or just don’t know what
they’re doing. OK, the terms used aren’t quite that specific, but
that’s the general idea.
All of these possible reasons why a patient might not pay could
be pretty discouraging for a practice looking to get the money
it’s owed. After all, there’s not much even the best doctor can
do about a patient’s poverty, venality, or fecklessness.
But is there really so little hope for collecting on medical
debt?
Why Medical Collection Isn’t Necessarily So Hopeless
Or, The Real Reason I Didn’t Pay My Dentist’s Bill
I just signed and mailed a check for my outstanding dentist’s
bill. That just goes to show the situation isn’t so hopeless
after all, doesn’t it? Here’s at least one case of a healthcare
practice getting its money back., and after three months at that
No, my financial situation did not improve dramatically, nor did
my slothful ways correct themselves.
Wondering what the dentist did to make me pay? Plead? Cajole?
Shame? Threaten to put the tartar back?
Actually, the dentist didn’t do anything, and that’s the problem.
Here’s what happened: I remembered I had the bill to pay.
I had forgotten ever owing the dentist money. Since I wasn’t
expecting the dentist’s bill, unlike all the bills that come
every month, it got lost in a pile of credit card offers, appeals
to help save trees being cut down to make paper, and news about
really great products for writers. The follow-up letter reminding
me to pay met a similar fate. It probably didn’t help when I took
a trip to Las Vegas and then threw away the junk mail en masse
when I got back.
I finally remembered the bill when someone asked me to write an
article about medical collections. Sure enough, the follow-up
letter (though not the original bill) was there in the pile of
newsletters and friendly reminders from various businesses to
schedule this or that appointment.
The Moral of the Story
If you are a patient, make sure to check your mail for letters
from the doctor’s office. If you’re running a healthcare
practice, follow up with your patients who have outstanding
invoices—a phone call is preferable, since it’s less likely to
get lost at the bottom of a pile of correspondence.
Don’t have time for that? Worried about the legal issues of
collection law compliance? Don’t let that stop you. Go to a
company that specializes in medical collections and accounts
receivables management for healthcare practices.
It’s not about "putting debts in collection" anymore. Many of
these companies offer everything from sending out a few polite
phone calls and letters to end-to-end accounts receivable
management. None of this has to impact your patients’ credit
rating or cost you a fortune.
Your office can go back to healing people. Isn’t that why you got
into this business in the first place?
Small Business Debt Collection Laws
Copyright © 2005, http://www.let-no-debt-remain-outstanding.com, Steve Austin
In your small business, debt collection laws will eventually
become important, as your debt grows and some clients do not
pay. To collect small business debts legally, you must send a
written notice that collections have begun, within five days of
first contacting the debtor for collections. The letter must
include dispute instructions.
Small Business Debt Collection Laws Forbidden Practices...
-----
Collect any amount beyond the actual debt, unless you really can
do so legally.
Continue collections on a debt if the debtor has disputed the
debt, unless you provide the debtor with written proof.
Continue contacting the debtor if within 30 days of first
contact, the debtor disputes the debt.
Credit a payment the debtor has made to a non-disputed debt to
a debt the debtor has disputed.
Deposit a post-dated check before the post-date.
Small Business Debt Collections Laws: What You Can't Say
Give a false name.
You are an attorney or government representative, if you are not.
You have an attorney working for you or that you are going to
assign the case to an attorney, if you really do not.
The debtor has committed a crime, unless you are 100% sure
they have.
You work for a credit bureau, if you really do not.
The debt is more or less money than it actually is.
You are sending or have sent legal forms when you really did not.
You are sending or have sent papers that are not legal forms,
if they really are legal forms.
The debtor will be arrested--no one is arrested for nonpayment
of debts anymore.
You will seize, garnish, attach, or sell the debtor's property
or wages, if you do not really intend to or cannot legally
do so (and unless the debt is secured with collateral, you
probably cannot).
You will sue or take other legal action, if you do not really
intend to, or are not legally able to do so.
Small Business Debt Collection Laws Forbidden Third-Party
Disclosures
Never:
-----
Give any credit-related information that is not 100% accurate.
Tell anyone other than the debtor that you are collecting a debt.
Telephone any number other than debtor's more than once.
Small Business Debt Collection Phone Calls
Never:
-----
Call after 9 pm or before 8 am.
Forget to give your name and your company's name.
Call repeatedly or in a way intended to annoy.
Make a collect call.
Make any threats.
Use profane or obscene language.
Leave a message that reveals this is a debt collection.
Small Business Debt Collection Mailing
Never Send:
----------
Postcards.
Envelopes or mailings with any reference to debt collection on
the exterior.
Anything that looks like an official, legal, or government
document, if it is not.
These simple small business debt collection laws guidelines
should help stay with the collection laws.
Robert Paisola: Debt Collection and Call Center Trainer
In this video Robert Paisola, the CEO of Western Capital at www.MyCollector.com will detail the Life Cycle of Debt and WHY PEOPLE PAY THEIR FRIENDS, NOT THEIR ENEMIES!
Why a Collection Agency Is Your Small Business’s Best Friend--Really
Copyright © 2005, Steve Austin
Does the term “collection agency” put you on edge? If you’re like
many small business owners, the mountain of debt you accumulated
during startup might have been enough to make you worry about
collection agencies every time you answered the phone. But your
feelings toward collection agencies are eventually going to
change, if they haven’t already.
While no one wants to hire a collection agency, it’s a sad
reality of doing business that not every customer feels the need
to pay, or has the ability to pay all at once. If you want to
stay in business, you’ll need to collect that money. When your
most polite and not-so-polite reminders to pay have failed,
you’ll need to start getting serious, which means going to an
agency.
Small Business Collection Agency Services: More Benefits than
Costs
Small business collection agency services will certainly cost
more than just writing letters demanding your money back. But the
amount of money you’ll collect, not to mention the time you’ll
save, will more than pay it back. In fact, when you consider the
hourly rate of your employees, or you yourself, collection
agencies’ fees really can be quite a bargain.
Let’s say you have an assistant your business pays $10/hour,
effectively costing your business $15/hour once you count in
employment taxes, benefits, and the overhead of your office. You
would be lucky if that assistant spent just five hours total on
each debt, and managed to collect half of them. But you would
have sunk $150 into each successful collection. Plus, there’s the
opportunity cost: $150 worth of time you haven’t spent in growing
your business. So the net loss is $300, and probably more if
you’re a profitable business that gets a good return on your
people’s time.
But if you refer your delinquent debts to a collection agency
for $75 each, and they collect three-quarters of them, you’ve
invested only $100 per debt collected. Once you factor in all the
money from all the debts the agency collected for you that you
couldn’t have collected on your own, the return on investment is
huge. That’s not even counting the saved opportunity cost, or
all the stress you’ll save yourself and your associates.
In the end, your small business has to focus on doing what brings
in the money: your core business. Leave your taxes to your
accountant, your office repairs to your building manager, and
your collections to your small business collection agency.
Writer's Resource Box:
Steve Austin is a regular contributor to Collection Agency
Information (http://www.collection-agency-information.com),
a website with articles on choosing a small business collection
agency, along with reviews of agencies, with links to their
websites.
Collection Agency Secrets for Collecting on Bad Debt
Copyright © 2005, Steve Austin
Getting worried that one of your clients, customers or patients
will never pay? Have you given up on a customer who's essentially
said he won't pay? Congratulations--being stiffed by a customer
or patient is a milestone in the growth of a business or medical
practice. But even the most hopeless of bad debts can sometimes
be collected—collection agencies have been doing it for years.
Here are six of their secrets.
1) Don't Just Call, Write.
According to a leading collection agency, you're much more likely
to collect on bad debts when you send a series of collection
letters. Deep down, you probably know why collection letters are
better. It's the same reasons that would make you uncomfortable
placing such a call in the first place: 1) if a debtor knows why
you are calling they will avoid your calls; and 2) if you do get
them on the phone they will most likely have a bad attitude, or
just make excuses like 'the check is in the mail' to get you off
their back.
2) Don't Ask If, Ask When.
This leading also recommends that you try to get your debtor
to set a date for paying you back. The people who owe you money
may have been saying to themselves that they will get around to
paying you any day now. But tomorrow never comes, which is why
you need a specific date. When you call, start by asking to be
paid today, then negotiate from there.
3) Be Mice.
Courtesy is important because: 1) it lets you keep the moral
high ground; 2) it makes it likelier that you can establish a
cooperative relationship with the debtor for getting the debt
repaid; and 3) there are very strong laws against harassment in
the collections process and you do not want even to approach
their limits.
4) Be Cooperative
Remember: you and your debtor have one thing in common: you both
want this debt to go away. In particular, you both want you to
stop having to make all these calls and send all these letters.
With that shared goal you and your debtor can work together to
create a repayment plan. While a repayment plan may not be what
you had hoped, it's better than holding onto a bad debt.
5) Know The Value Of Your Time
The one thing that is probably keeping you from collecting on
your supposedly bad debt is your fear that the time you spend
collecting the debt may not be worth whatever you will recover.
This fear is justified; your time is valuable and maybe it would
be better spent on getting new business.
But don't just let this fear linger in the back of your mind,
fighting with the little voice that says you want your money.
To get a rough idea of how much time you can afford to spend
collecting the debt, and whether you have the time to do it at
all, sit down and write out a rough estimate of the value of your
time, the likelihood of collecting, and the amount you are owed.
For instance, let's say you are going to assign this task to an
administrative assistant whose time is worth $15/hour. The debt
is $1000. It is owed you by an old customer who is three months
behind but has never been seriously delinquent before, so you say
you have a 50% chance of getting the money, making the value of
the collection about $500.
You divide $500 by $15 and find that your assistant could spend
33 hours collecting the debt before it lost your company money.
However, you'd probably still feel a little unsure about whether
it was all worth it. Your feelings would be correct: there's
still the opportunity cost of all the work your assistant won't
be doing to keep your business moving. To be safe, you can also
estimate the opportunity cost at another $15/hour, which means
you can only really afford to have your assistant spend half as
much time, or 16 and a half hours. If you've already spent that
much time already, it's time either to call it quits or call in
the professionals.
6) Get A Collection Agency
The one secret the collection agencies know about collections
is the value their services deliver clients. Unfortunately,
businesses do not usually agree to write testimonials for their
collection agencies or even recommend them to a friend. If you
didn’t know that there are small business collection agencies
that will collect your bad debt for under $20, you have to admit
that leaving your collections to the pros is a pretty good
business secret. In short, you don’t want your bad debt to cost
you twice: once when you lose it, and again when you waste a
lot of your or your people’s time going after it. Going with
a collection agency can help you avoid either outcome.
How To Avoid Medical Collections
Copyright © 2005, http://www.let-no-debt-remain-outstanding.com, Steve Austin
Medical Collections True Tales: Confessions of a Dental Debt
Deadbeat
Medical collections are costing doctors millions. Here are the
secrets of why patients don’t always pay their bills, from a
real-life deadbeat.
With medical collections costing doctors millions upon millions
of dollars in unpaid bills and collection fees, many people have
just one question: Who are these people who are trying to stiff
the doctors who delivered them from great physical pain (or the
flu, hypochondria, not-so-white-teeth, or a nose that didn’t look
enough like Brad Pitt’s)?
Well, I’m here to tell you who these people are, or at least some
of them.
They’re me.
Yes, I admit it: I left a dentist’s bill unpaid for three months.
OK, so dentistry isn’t technically considered "medical," but it’s
the same situation: a doctor left in the lurch.
Why did I do such a horrible thing, especially when I, a small
businessperson myself, know how difficult unpaid debts can make
cash flow, and how it could very easily make me persona non grata
in that office?
Why Medical Collections Happen
Or, Possible Reasons for Me Being a Deadbeat
Here are reasons commonly advanced for why people like me might
not pay a doctor’s bill.
They don’t have enough money, plain and simple. After all, if
they couldn’t afford insurance, they probably are going to have
trouble with the bill.
They don’t care about the poor doctors and either don’t know
about or don’t care about the potential for damage to their own
credit ratings.
They are chronically lazy, stupid, or just don’t know what
they’re doing. OK, the terms used aren’t quite that specific, but
that’s the general idea.
All of these possible reasons why a patient might not pay could
be pretty discouraging for a practice looking to get the money
it’s owed. After all, there’s not much even the best doctor can
do about a patient’s poverty, venality, or fecklessness.
But is there really so little hope for collecting on medical
debt?
Why Medical Collection Isn’t Necessarily So Hopeless
Or, The Real Reason I Didn’t Pay My Dentist’s Bill
I just signed and mailed a check for my outstanding dentist’s
bill. That just goes to show the situation isn’t so hopeless
after all, doesn’t it? Here’s at least one case of a healthcare
practice getting its money back., and after three months at that
No, my financial situation did not improve dramatically, nor did
my slothful ways correct themselves.
Wondering what the dentist did to make me pay? Plead? Cajole?
Shame? Threaten to put the tartar back?
Actually, the dentist didn’t do anything, and that’s the problem.
Here’s what happened: I remembered I had the bill to pay.
I had forgotten ever owing the dentist money. Since I wasn’t
expecting the dentist’s bill, unlike all the bills that come
every month, it got lost in a pile of credit card offers, appeals
to help save trees being cut down to make paper, and news about
really great products for writers. The follow-up letter reminding
me to pay met a similar fate. It probably didn’t help when I took
a trip to Las Vegas and then threw away the junk mail en masse
when I got back.
I finally remembered the bill when someone asked me to write an
article about medical collections. Sure enough, the follow-up
letter (though not the original bill) was there in the pile of
newsletters and friendly reminders from various businesses to
schedule this or that appointment.
The Moral of the Story
If you are a patient, make sure to check your mail for letters
from the doctor’s office. If you’re running a healthcare
practice, follow up with your patients who have outstanding
invoices—a phone call is preferable, since it’s less likely to
get lost at the bottom of a pile of correspondence.
Don’t have time for that? Worried about the legal issues of
collection law compliance? Don’t let that stop you. Go to a
company that specializes in medical collections and accounts
receivables management for healthcare practices.
It’s not about "putting debts in collection" anymore. Many of
these companies offer everything from sending out a few polite
phone calls and letters to end-to-end accounts receivable
management. None of this has to impact your patients’ credit
rating or cost you a fortune.
Your office can go back to healing people. Isn’t that why you got
into this business in the first place?
Small Business Debt Collection Laws
Copyright © 2005, http://www.let-no-debt-remain-outstanding.com, Steve Austin
In your small business, debt collection laws will eventually
become important, as your debt grows and some clients do not
pay. To collect small business debts legally, you must send a
written notice that collections have begun, within five days of
first contacting the debtor for collections. The letter must
include dispute instructions.
Small Business Debt Collection Laws Forbidden Practices...
-----
Collect any amount beyond the actual debt, unless you really can
do so legally.
Continue collections on a debt if the debtor has disputed the
debt, unless you provide the debtor with written proof.
Continue contacting the debtor if within 30 days of first
contact, the debtor disputes the debt.
Credit a payment the debtor has made to a non-disputed debt to
a debt the debtor has disputed.
Deposit a post-dated check before the post-date.
Small Business Debt Collections Laws: What You Can't Say
Give a false name.
You are an attorney or government representative, if you are not.
You have an attorney working for you or that you are going to
assign the case to an attorney, if you really do not.
The debtor has committed a crime, unless you are 100% sure
they have.
You work for a credit bureau, if you really do not.
The debt is more or less money than it actually is.
You are sending or have sent legal forms when you really did not.
You are sending or have sent papers that are not legal forms,
if they really are legal forms.
The debtor will be arrested--no one is arrested for nonpayment
of debts anymore.
You will seize, garnish, attach, or sell the debtor's property
or wages, if you do not really intend to or cannot legally
do so (and unless the debt is secured with collateral, you
probably cannot).
You will sue or take other legal action, if you do not really
intend to, or are not legally able to do so.
Small Business Debt Collection Laws Forbidden Third-Party
Disclosures
Never:
-----
Give any credit-related information that is not 100% accurate.
Tell anyone other than the debtor that you are collecting a debt.
Telephone any number other than debtor's more than once.
Small Business Debt Collection Phone Calls
Never:
-----
Call after 9 pm or before 8 am.
Forget to give your name and your company's name.
Call repeatedly or in a way intended to annoy.
Make a collect call.
Make any threats.
Use profane or obscene language.
Leave a message that reveals this is a debt collection.
Small Business Debt Collection Mailing
Never Send:
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Postcards.
Envelopes or mailings with any reference to debt collection on
the exterior.
Anything that looks like an official, legal, or government
document, if it is not.
These simple small business debt collection laws guidelines
should help stay with the collection laws.
Robert Paisola: Debt Collection and Call Center Trainer
In this video Robert Paisola, the CEO of Western Capital at www.MyCollector.com will detail the Life Cycle of Debt and WHY PEOPLE PAY THEIR FRIENDS, NOT THEIR ENEMIES!
If you need:
Commercial debt collections; commercial debt recovery; commercial collections; the service of a collection agency; tips and free articles on how to collect bad debt and get the money your deadbeat customers owe you...you've come to the right place!
"How To Double Your Debt Collections"
by Jim Finucan
© Tiare Publications
Believe it or not the success or failure of your attempt to collect a debt is usually decided right at the beginning of your phone call - with the very first thing you say after the other party says hello. Knowing exactly what you're going to say, and handling the call in an organized, professional manner is the foundation upon which collections are made or lost. There are four parts to a professionally executed collections call:
Part One: The Open
How you identify yourself, your company and the problem. And how you place that problem before the debtor. Don't ask him when he's going to get around to paying you or why he's putting you off. Otherwise you've made your move too soon and you'll be at a disadvantage right off the bat. Instead, put the debtor in the position of having to explain himself. Say something like "What are your intentions toward this bill?"
Part Two: The Facts
If the debtor doesn't agree to pay the bill early on, move into the next part of the call: asking questions about his situation. It's important to make a smooth transition here because you don't want to alarm the debtor. Say something like "Let me just fill out an extension form for you." Then you can start asking about his job, whether his wife is employed, any outstanding loans he may have, credit cards, etc.
Part Three: The Dun
Once your questioning has given you the information you need you can show the debtor a way in which he or she can pay the debt. You know, for instance, that he can afford to put it on his MasterCard, or that she could qualify for a bank loan. Now you're in position to make your demand for payment (the dun).
Part Four: The Close
Whether or not the debtor has agreed to pay there is also a specific way you should end the call. And I don't mean, "Gee, thanks, have a nice day!" or "You've 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; make it clear that the problem must still be resolved. Be professional; don't insult him. Save any threats of legal action until you've contacted the debtor several times without success and see no other option. Never threaten legal action unless you fully intend to follow through, otherwise you can be accused of harassment.
Collection calls are a necessity in bill collecting. Making the effort to learn and use as many techniques as you can will bring results and increase the bank balance of your business.
Jim Finucan has more than 12 years as a "top gun" in the collections business. Visit Tiare.com for more information on bill collecting and his debt collections manual - Past Due
Commercial debt collections; commercial debt recovery; commercial collections; the service of a collection agency; tips and free articles on how to collect bad debt and get the money your deadbeat customers owe you...you've come to the right place!
"How To Double Your Debt Collections"
by Jim Finucan
© Tiare Publications
Believe it or not the success or failure of your attempt to collect a debt is usually decided right at the beginning of your phone call - with the very first thing you say after the other party says hello. Knowing exactly what you're going to say, and handling the call in an organized, professional manner is the foundation upon which collections are made or lost. There are four parts to a professionally executed collections call:
Part One: The Open
How you identify yourself, your company and the problem. And how you place that problem before the debtor. Don't ask him when he's going to get around to paying you or why he's putting you off. Otherwise you've made your move too soon and you'll be at a disadvantage right off the bat. Instead, put the debtor in the position of having to explain himself. Say something like "What are your intentions toward this bill?"
Part Two: The Facts
If the debtor doesn't agree to pay the bill early on, move into the next part of the call: asking questions about his situation. It's important to make a smooth transition here because you don't want to alarm the debtor. Say something like "Let me just fill out an extension form for you." Then you can start asking about his job, whether his wife is employed, any outstanding loans he may have, credit cards, etc.
Part Three: The Dun
Once your questioning has given you the information you need you can show the debtor a way in which he or she can pay the debt. You know, for instance, that he can afford to put it on his MasterCard, or that she could qualify for a bank loan. Now you're in position to make your demand for payment (the dun).
Part Four: The Close
Whether or not the debtor has agreed to pay there is also a specific way you should end the call. And I don't mean, "Gee, thanks, have a nice day!" or "You've 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; make it clear that the problem must still be resolved. Be professional; don't insult him. Save any threats of legal action until you've contacted the debtor several times without success and see no other option. Never threaten legal action unless you fully intend to follow through, otherwise you can be accused of harassment.
Collection calls are a necessity in bill collecting. Making the effort to learn and use as many techniques as you can will bring results and increase the bank balance of your business.
Jim Finucan has more than 12 years as a "top gun" in the collections business. Visit Tiare.com for more information on bill collecting and his debt collections manual - Past Due
Debt Collection article archives - master collector Jim Finucan
Master collector Jim Finucan knows all about the dances, dodges and delays debtors will try to pull. Let Jim show you how to double or even triple the money you collect from your accounts receivable
DEBT COLLECTING Q & A - Issue 2
By Jim Finucan
© Tiare Publications Group
Dear Jim,
I have a client who, for the most part, is an excellent customer. However, I've run into a problem. He has refused to pay a $7,500 bill, claiming that they had to hire someone else to re-do the work we did for them. I've spent a great deal of time developing this
relationship and I don't want to end it. On the other hand, I don't want to be looked on as an easy mark and get taken. What should I do?
--Ticked Off in Jersey
Dear Ticked Off,
This does not sound like a case of someone taking your services and then claiming they don't have the money to pay you. It's important to be able to recognize the difference between a genuinely disputed bill and someone who is deliberately trying to rip you off. This appears
to be a quality client, the kind you want to keep and nurture. I'm guessing that your business relationship with this client has resulted in a lot more income for you than the $7500 in question. Put your experience and business skills to work here and ask yourself
some questions:
Is the client a repeat customer?
How long have you had this client?
Have they paid on time in the past?
Have they given you referrals?
Can you see their side in this dispute?
How much money is involved?
Is losing that amount worth saving the relationship?
Is the client likely to give you more work in the future?
High much might the client be worth to you in the future?
Find out what caused the misunderstanding. Maybe someone messed up on your end. Calmly and clearly communicate your position to the client. Be polite! Don't push. Seek information, not confrontation. If no understanding can be reached, forget about the money and don't bring
up the subject again. If you see the client as being a big part of your future you may want to forgive the debt without any further inquiry on your part. Instead, send them a large box of candy and a pair of tickets to the theater or a ball game.
Jim Finucan is a top gun professional bill collector. His book "Past Due - A Bill Collecting Manual" has helped many businesses double their debt collections using the professional techniques he has developed over 15 years. More info at: http://www.tiare.com/pastdue.htm
*********
How to Keep a Collections Call On Track
by Jim Finucan
Q) Jim – How do I go about putting myself on the debtor's level, i.e. empathizing with him?
A) You are certainly on the right track if you are thinking along these lines. To collect a debt you have to be able to use some advanced communications skills. People won't accept help or consultation from someone who talks down to them or doesn't really listen to their problem. You can connect with the debtor and guide him or her out of their problem if you try to find a common bond and use that as a way to connect with them.
Everything in our business and personal lives is about building relationships. You don't need a lot of time to do that – which is good because on a collections call you don't have very much time.
First, listen to the debtor. Don't interrupt when they are speaking;let them know you are following what they are saying. Ask a key question at the right moment. Then, when you think you've listened long enough, change the direction of the call by saying "I understand…" and mention something in their story or experience you can relate to. Then continue, using words like "However, you have to recognize the need for payment of the debt on these grounds" and calmly give them the reason why and the way they can solve the problem by using the assets they have in order to obtain credit or assistance.
Explain how non-payment will only make things worse. At the same time make reference to the problems they've told you about but, at the same time, don't let those problems be turned into excuses. If you treat their problem like a minor obstacle you may help them to understand that it can be overcome and thus find a solution. Empathizing with the debtor is vital to a collection call if it is to succeed.
Debt collections expert Jim Finucan shows you how to double your
collections success in "Past Due – A Debt Collecting Manual." More
info on this unique book is available at: http//www.tiare.com/pastdue.htm
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COLLECTING PAST DUE ACCOUNTS: Letting a Call Get Personal
By Jim Finucan
C 2004 Tiare Publications
"How about you? Didn't you ever fall behind on a bill and couldn't pay on time?"
When a debtor says something like this - be careful! The debtor is trying to pull you off your professional pedestal and personally involve you in the call. If things head in this direction you'll lose control of the call. Who knows where it might lead? Probably not to the goal you want.
"That has nothing to do with your bill." Such a response is a way to stop an attempt to involve you personally. Quickly move on to obtaining information or dunning for the balance if the call has reached that stage. Sometimes when you question the debtor he may try to turn the tables on you.
"How much do you make a month"?
"That's irrelevant."
"If it's irrelevant then so is how much I make."
"Not true, Mr. Jones. You have a debt here and that makes your income a concern to this office,"
Not allowing the debtor to draw you into a verbal duel keeps the call on a professional level. You need to keep your wits - as well as a touch of sensitivity - in order to know when to make the move over to the debtor's side and gain his cooperation.
If you don't think some debtors are extremely intelligent you underestimate your opposition. Just as you get better with each call you place, so do debtors who repeatedly find themselves in collections. An experienced debtor may try to draw you into the call on his level and then take control.
"It's just so hard with three kids to feed. Do you have kids?"
Don't answer a question like that. Another favorite line is:
"How can you do that job?"
Ignore this, too. Reply with a question related to the bill or go into the dun.
Remember, the debtor is attempting to take control of the call, trying to hide behind insincere sentimentality. These tricks have worked for him in the past. They shouldn't have any effect on you.
Jim Finucan knows all about the dances, dodges and delays debtors will try to pull. Let Jim show you how to double or even triple the money you collect from your accounts receivable. Check out his unique collections manual "Past Due." For more information visit: www.tiare.com/pastdue.htm
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Collecting Past Due Accounts: Be A Bulldog With Those Past Due Invoices
By Jim Finucan
Make no mistake if you forget about that past due invoice, so will the guy who owes it to you!
Professional collectors have an advantage over the in-house commercial collection agent in the technology they use. They work from highly sophisticated systems that dial collection calls automatically, identify and track an outstanding bill and program it for frequent phone follow-up. There is no way an outstanding bill gets overlooked.
But you don't need a $30,000 dialer to give voice to your bill, just a little self-discipline. Force yourself to get into the habit of making calls to the debtor every day, and do not give up! Call the debtor at different times of the day; vary your style, voice and pitch. When you run into a really tough situation you need to act like a bulldog. Turn up the intensity as needed.
Call anyone and everyone in the company that you have a number for. Assume your conversation will be the topic of discussion in a meeting it will if your call is firm and unusual enough. If all you can reach is someone's voice mail, utilize it as a last resort. If you reach the CEO make your message something like this:
"Donny, you're not going to make it to the cover of Time unless you start returning call from people to whom you owe money. With all this corporate scandal in the news it's good to see that you are a light of integrity in the business world. Don't be afraid to return my call. My number is -----"
Sound tough? You bet! It had better be tough and so had you. Let him have it, because he is ripping you off, he's a thief. When he returns the call he'll be upset and that's good, that's half the battle. Hold your ground and state your position, don't yield or settle for less than the balance in full.
Jim Finucan is the author of "Past Due" a debt collection manual which teaches you the inside techniques to get past the dances, dodges and delays debtors use and even turn their excuses to your advantage! More info at: http://www.tiare.com/pas
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Haven't You Waited Long Enough to Get Paid?
by Jim Finucan
Business-to-business debt collecting is a different ball gamecompared to collecting from an individual debtor. Once abusiness debtor has owed you for quite awhile it's perfectly OKto take the gloves off and go all in an effort to get the Money.After all, things have reached the point where you wouldn't dobusiness with that outfit again anyway so you have nothing moreto lose! But first, be clear about what your objective is:getting the balance owed to you paid in full. Don't be willingto accept anything short of that. .
It's OK to threaten legal action (if carried out, this wouldcreate a public record showing that this firm is stealing fromyou). Essentially you are going to be calling this person athief to try and make him see himself as you see him and thusmake him change his mind about paying you. You simply cannot betimid about it, nor can you approach the campaignhalf-heartedly. The debtor already has you figured as apushover. He already has a catalog of excuses set-aside just foryou, so it's up to you to convince him otherwise. You have tohave a mindset ready to sweep excuses aside and convince him youmean business.
First, be sure you've reached the right person. Don't messaround with underlings or gatekeepers - they don't cut thechecks. You want the owner or the guy who authorized thepurchase and is now telling someone else to ignore yourinvoices. Seek him out. Call him as often as you need to, evenat home in the evenings if necessary. Let him know in words ortone of voice that you are angry, and don't be overly concernedwith business etiquette; it doesn't apply here. In fact, thefederal Fair Debt Collection Practices Act does not covercommercial transactions so you are pretty much free to tryanything, although common sense suggests you avoid doinganything that would reflect badly on you or your firm.
Here are some examples you might want to use:
You received the product, now I want my money, and you're goingto pay it whether you want to or not
I have personal knowledge (if you do) of the assets you hold.Now how are we going to settle this?
Are you a man of your word?
What kind of operation are you running there?
Are you ripping off other people as well?
Would you say your conduct here is honorable? (With this one, beready for the debtor to try some self- justification. This willreveal how he justifies his conduct. When you spot the excuse,point it out to him)
It's imperative that you stamp out any objection or stalltactics he may try until you have him on the ropes. Then you cantry to reason with him; just don't waver in your insistence onfull and complete payment.
Jim Finucan has over a dozen years as a top gun debt collector.His debt collection manual Past Due! can show you how to doubleyour debt collections. More info is athttp://www.tiare.com/pastdue.htm
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JIM FINUCAN'S BILL COLLECTING Q & A Issue #1
Dear Jim
I keep running into guys who say they just don't have the money.When I hear that I start to lose my resolve. What can I do?
First, you need to be absolutely convinced in your own mindbefore you even start the call - that you deserve to be paid andyou're going to get the money. Everybody has it withinthemselves to fight for what is theirs. Think of your pastaccomplishments and get yourself pumped up ahead of time. It'sessential that you to come across as strong and determined onthe phone, otherwise the debtor will sense your weakness. Andyou can bet that he will try to use that weakness against you.
When he says he doesn't have the money to pay you, start askinghim questions about his financial situation. Is he paying hisemployees these days, or are they working for vouchers? Has hemade any major purchases in the last 60 days? Could he getapproved for a loan? What kind of car does he drive? What's hisaverage annual income? He's not going to be prepared for allthese questions so he'll have to think fast - make up lieson-the-spot. One of them bound to be ridiculous and thus easy tospot. When it comes call him on it. It's time to shame him andshame him good
"That's ridiculous." "How na�ve do you think I am?" "Who do youthink you're kidding?" "Do you handle all your business affairsas pathetically as this?" "Do the other businesses you deal withknow you're in such a bad situation?"
If he is having trouble paying some of his bills it's likely theother people he deals with aren't aware of his situation,because he knows they won't stand for the kind of crap he ispulling on you, so he doesn't try it on them.. And you shouldn'tlet him pull it on you, either.
He wants you to feel sorry for him. By creating a situationwhere he has to lie, and then making him explain his lies he maybegin to realize just how pathetic he sounds to others. I firmlybelieve that even someone with a comatose conscience can beawakened and turned around by using this approach.
Jim Finucan has over a dozen years as a top gun debt collector.His debt collection manual Past Due! can show you how to doubleyour debt collections. More info is athttp://www.tiare.com/pastdue.htm
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DEBT COLLECTING Q & A - Issue 2
By Jim Finucan
© Tiare Publications Group
Dear Jim,
I have a client who, for the most part, is an excellent customer. However, I've run into a problem. He has refused to pay a $7,500 bill, claiming that they had to hire someone else to re-do the work we did for them. I've spent a great deal of time developing this
relationship and I don't want to end it. On the other hand, I don't want to be looked on as an easy mark and get taken. What should I do?
--Ticked Off in Jersey
Dear Ticked Off,
This does not sound like a case of someone taking your services and then claiming they don't have the money to pay you. It's important to be able to recognize the difference between a genuinely disputed bill and someone who is deliberately trying to rip you off. This appears
to be a quality client, the kind you want to keep and nurture. I'm guessing that your business relationship with this client has resulted in a lot more income for you than the $7500 in question. Put your experience and business skills to work here and ask yourself
some questions:
Is the client a repeat customer?
How long have you had this client?
Have they paid on time in the past?
Have they given you referrals?
Can you see their side in this dispute?
How much money is involved?
Is losing that amount worth saving the relationship?
Is the client likely to give you more work in the future?
High much might the client be worth to you in the future?
Find out what caused the misunderstanding. Maybe someone messed up on your end. Calmly and clearly communicate your position to the client. Be polite! Don't push. Seek information, not confrontation. If no understanding can be reached, forget about the money and don't bring
up the subject again. If you see the client as being a big part of your future you may want to forgive the debt without any further inquiry on your part. Instead, send them a large box of candy and a pair of tickets to the theater or a ball game.
Jim Finucan is a top gun professional bill collector. His book "Past Due - A Bill Collecting Manual" has helped many businesses double their debt collections using the professional techniques he has developed over 15 years. More info at: http://www.tiare.com/pastdue.htm
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Debt Collecting Q & A Issue 6
DEBT COLLECTING Q & A - Issue #6 By Jim Finucan � TiarePublications Group 385 words
Editor: The following article is offered for your free use,provided the author Resource box is included at the end.
Q) Jim: How can I be sure that I've gotten to the heart of theproblem when I suspect the debtor is being insincere, or evendishonest?
A) Use a technique called ""funneling." It's a method ofquestioning that begins on a broad level and becomes morespecific as you progress. Narrow in and focus on the responseyou're getting until your suspicions are either confirmed or youcan accept the debtor's excuses as genuine. A typicalconversation might go something like this:
"Is there anything preventing you from sending the check for thebalance tomorrow?" "I can't send it tomorrow; I won't be in theoffice." "That's hardly a problem; you could mail it outtonight, before you leave. Do you agree?" "I told you, I justcan't." "You mean, I provide the services to you when you needthem and you're the kind of person who won't pay because youdon't have the time? Is that right? "No, it's not like that.""Then you need to tell me now what it is like. What is it,that's stopping you from taking care of this obligation andleaving yourself exposed to legal action?" "The company justdoesn't have the funds available." "All right, Tom," (Note thatthe story is changing here. This reason is either more accurateor another stall tactic.) "What I need you to understand is thatexcuse doesn't concern me one way or the other. When yourcompany needs funds to continue operating what do you do? Thatcheck needs to be in the mail by tomorrow at the latest."
And regardless of his answer, find out which bills are beingpaid and which ones are not - and why yours is one of those noton the "pay" list.
Funneling down into an excuse with a more precise line ofquestioning uncovers the true intentions of a debtor. In fact,this technique actually helps the debtor see himself acting in away that is not congruent with his own beliefs. That exposurewill help him make more honest and forthright decisions in thefuture.
If something doesn't feel right during a collections callquestion it! Throw a whole series of sharp, penetratingquestions at it until it cracks. Then both sides can identifyand solve the sense of the problem.
(end)
Jim Finucan has over a dozen years as a top gun debt collector.His debt collection manual Past Due! can show you how to doubleyour debt collections. More info is athttp://www.tiare.com/pastdue.htm
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pic of Finucan at http://www.translationdirectory.com/article632.htm
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Haven't You Waited Long Enough to Get Paid?
by Jim Finucan © 2001 Tiare Publications
Business-to-business debt collecting is a different ball game compared to collecting from an individual debtor. Once a business debtor has owed you for quite awhile it's perfectly OK to take the gloves off and go all in an effort to get the Money. After all, things have reached the point where you wouldn't do business with that outfit again anyway so you have nothing more to lose! But first, be clear about what your objective is: getting the balance owed to you paid in full. Don't be willing to accept anything short of that. .
It's OK to threaten legal action (if carried out, this would create a public record showing that this firm is stealing from you). Essentially you are going to be calling this person a thief to try and make him see himself as you see him and thus make him change his mind about paying you. You simply cannot be timid about it, nor can you approach the campaign half-heartedly. The debtor already has you figured as a pushover. He already has a catalog of excuses set-aside just for you, so it's up to you to convince him otherwise. You have to have a mindset ready to sweep excuses aside and convince him you mean business.
First, be sure you've reached the right person. Don't mess around with underlings or gatekeepers - they don't cut the checks. You want the owner or the guy who authorized the purchase and is now telling someone else to ignore your invoices. Seek him out. Call him as often as you need to, even at home in the evenings if necessary. Let him know in words or tone of voice that you are angry, and don't be overly concerned with business etiquette; it doesn't apply here. In fact, the federal Fair Debt Collection Practices Act does not cover commercial transactions so you are pretty much free to try anything, although common sense suggests you avoid doing anything that would reflect badly on you or your firm.
Here are some examples you might want to use:
You received the product, now I want my money, and you're going to pay it whether you want to or not
I have personal knowledge (if you do) of the assets you hold. Now how are we going to settle this?
Are you a man of your word?
What kind of operation are you running there?
Are you ripping off other people as well?
Would you say your conduct here is honorable? (With this one, be ready for the debtor to try some self- justification. This will reveal how he justifies his conduct. When you spot the excuse, point it out to him)
It's imperative that you stamp out any objection or stall tactics he may try until you have him on the ropes. Then you can try to reason with him; just don't waver in your insistence on full and complete payment.
--------------------------------------------------------------------------------
Jim Finucan has more than 12 years as a "top gun" in the collections business. Visit Tiare.com for more information on bill collecting and his debt collections manual - Past Due
*********************************
Collecting Past Due Accounts - Dealing With Debtors
15th August 2005
Author: Jim Finucan
COLLECTING PAST DUE ACCOUNTS: Dealing With Deadbeats
By Jim Finucan
� 2005 Tiare Publications
239 words
A deadbeat is someone who feels no regret about sticking someone
else with a bill. He can bounce checks, hang up on a collector and
then pick up his TV remote without a bit of concern for the person
or company he just stiffed. He can take your advice, go get a
consolidation loan � and then spend the money on a big screen HDTV.
There are a lot of people in this unhappy category and sooner or
later you're going to find one of them at the other end of your
collections call.
Even though you're likely to view this attitude with great distaste
you have to try and find at least one thing to like about the person
you've classified as a deadbeat. The ability to uncover that one
likeable quality isn't easy to develop but with practice it can be
done. Work at trying to find likeable qualities in people you meet
outside of your collections work. That will give you many additional
opportunities to practice.
When you do find that something, the debtor will sense it through
your choice of words and tone of voice and, as a result, will become
easier to work with.
It's important not to come across as being judgmental. When you
judge others you put yourself above them. People need to feel that
you are working with them on their level.
(End)
Jim Finucan knows all about the dances, dodges and delays debtors
will try to pull. Let Jim show you how to double or even triple the
money you collect from your accounts receivable. Check out his
unique collections manual "Past Due." For more information visit:
http://www.tiare.com/pastdue.htm
******************************************
Debt Collecting Q & A - Keeping Your Composure, Issue 7
by Jim Finucan
Question: Dear Jim - I'm an administrative assistant and I do bill collections for our company. Some of the owners who owe us money act like they are real big shots; they just walk all over me so I end up getting flustered, losing my composure and often I don't get the money. I've read your book, "Past Due," and gotten a lot from it, but sometimes I just can't get through those four steps in the collection call before I lose them. What should I do?
Jeanne,
Austin, MN
Answer: I have felt the same way at times. Try to develop a technique called pacing. Within the first few moments of the call try and get a feel for the kind of person you are dealing with. Listen to their tone of voice and speed of speech, then try and at least match it or do it better than they do if you can. Owners like to direct and usually like to deal with their own kind -authoritative, direct, pulling no punches. They're not bad people, understand, they just handle life differently than most of us. So put yourself into a mode they will understand and respect, for example:
"I don't have time to talk to your right now, I'm very busy."
"Wait a minute, Mr. Jones, I'm busy too, and I resent the fact I have to call you to bring to your attention the money you owe us. Being a busy man, can you imagine how insulting that is to me?
That opening should get him away from the condescending attitude he's taken because his company is bigger than yours, you're a woman or whatever his throttle is stuck on. Either knock him down or bring yourself up to his level, and don't listen to the little voice in your head that's making you nervous about speaking to people who carry authority and power. See them as debtors and nothing more. That's really all that should matter to you in these kinds of situations. In the long run you'll end up getting respect from them - and very likely the money they owe you as well!
Jim Finucan is a fifteen-year collections expert. His book "Past
Due - A Debt Collections Manual" shows you how you can double your debt collections. For more information visit:http://www.tiare.com/pastdue.htm
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Debt Collection Techniques: Making Tax Season Work for You
by Jim Finucan
Income tax refunds to debtors can be drawn upon to settle a balance when you dun and do a proper follow-up. Indeed, You can actually triple your collection amounts during tax season!
In January, pinpoint the accounts that might have refunds coming. Include a question in the "facts" part of your call as to whether the debtor expects to get a refund. Then keep tabs on them and in your conversations repeatedly confirm that they will use the refund to pay your bill. Watch out for "reduction tactics" which the debtor may try around the time he expects the refund check to arrive �
"I just found out that the refund isn't going to be as much as I thought/" (sounding sincerely disappointed.)
You should then request immediate documentation of this lower figure and inform the debtor that further collection procedures will now be implemented. Then discuss other ways the debtor can come up with the money.
If the debtor becomes evasive or doesn't respond to your messages around the time he expects his check don't hesitate to call him at work. If you haven't been "ceased" from doing this (see pages 24-25).
You need to stay on top of this situation because you'll often find yourself competing with collectors from other businesses who are also after this guy. Those who are most efficient, who are firmest in their demands, are the ones who'll bring in the bucks.
By Jim Finucan � 2005 Tiare Publications
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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Q) Are there any laws I must follow in pursuing debtors?
A) Yes. And no. If you are employed by a collection agency you are bound by the Fair Debt Collection Practices Act of 1974. This law should be available at your collections agency or you might find a copy at your library (I cover the main points of this law in my book). The law governs such things as the times during which calls can beamed, things you can and cannot say and so on. A collection agency is largely responsible for the training and education of its own collection agents.
If you are a private business you are really governed only be the unwritten laws of decent human conduct. Harassment is contacting someone with the intent to annoy. You are contacting with the intent to collect a legally incurred debt, so you are covered. Now, you obviously can't beat someone up or threaten him or her with harm but you can speak plainly and directly as someone who is owed money � and so you should. Say what you wish to say and think about what would strike a nerve with the debtor. Confront him with his actions in a straightforward manner and don't worry about being thought "mean." Debtors need to hear the truth whether they likeit or not.
The thing you need to be aware of is harassment. You won't cross the line into being guilty of this if you keep your focus clear � and that's collection of the debt. Don't heckle the debtor or engage him in a personal battle. Keep it on a professional level. Be aggressive and use your good sense. Stay with techniques that are strong and just and you'll be in good shape.
(End)
By Jim Finucan � Tiare Publications Group
Jim Finucan is a 15-year collections veteran whose techniques have proven to double collections time aftertime. They're laid out in "Past Due � A Debt Collection Manual." More info sat: http://www.tiare.com/pastdue.htm
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Collecting Past Due Accounts - Notice Of Listing
The Notice of Listing law is aimed at regulating the actions of collection agencies and their operatives.
You should be familiar with it even if you are a small business owner or work in the accounts receivable department. Following the same rules as the professionals do will help protect you from lawsuits.
Every collection agency is required to send a "Notice of Listing" when they receive an account for collection. This letter is the first word the debtor gets from the agency. It informs him that a particular business has turned his debt over to a collection agency.
The Notice of Listing includes a sort of "Miranda warning" which informs the debtor that this is an attempt to collect a debt and that any information obtained maybe used for that purpose. If the debt is going to be placed on the debtor's credit report, the debtor must be given 30 days to respond before that action is taken. If your Notice of Listing indicates that you are going to put the debt on the debtor's credit report you cannot send the debtor anything more for at least 30 days, during which time the debtor can dispute the debt. To do this the debtor has to send a letter stating that he disputes the bill. He does not have to give a reason.
At this point Fair Debt Collection Protection Act (FDCPA) rules require a collection agency to send a validation of the debt. This is an itemized statement or copy of the client's original billing. Once this has been sent to the debtor you can begin taking action to collect the bill. Be sure you do not take any action on the account until you have sent the validation to the debtor. The debtor has the right to request validation of the debt any time within 30 days of its having been placed with the collection agency.
You can contact the debtor by phone within the 30-day period, but you have to be very careful about what you say. You can ask for the balance in full but you cannot demand it, nor can you threaten legal consequences within the 30-day period. You can advise the debtor to pay in full before the debt goes on his credit report, which normally happens at the end of the 30 days. (This is a powerful tool, by the way). You can also ask for information about the debtor, just as you do in a regular collection call. Whatever you say in a phone call in this situation must be put in the form of a question.
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About the Author:
Jim Finucan has over a dozen years as a collections professional. Time and again his techniques have helped businesses double their collections income. His book "Past Due – A Collections Manual" is a must have for any business with accounts who are past due. More info: http://www.tiare.com/pastdue.htm
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Getting Inside Help to Collect That Past Due Bill
by Jim Finucan
A frequent problem in commercial collections is the inability to reach the decision maker. The president of the company insulates himself against such bothersome issues as unpaid invoices through a layer of VPs and department heads. Trying to fight your way through to the top guy in order to get your money can be the height of frustration.
Sometimes you just can't climb all the way to the top and you have to settle for dealing with a vice president or the accounts payable manager. The goal here is to find someone who will be on your side, become a champion for your cause. Yes, it can be done. Work to build a relationship through your calls, a relationship based on truth and respect. Ask direct questions about how much authority this person has and use him or her to help get you as near to the top-level decision makers as you can. When you've made it as far up as you can go, listen to the challenges this person is dealing with and then suggest a solution that allows the two of you to work together to eliminate the need for further collection procedures.
Hold your inside contact accountable for their promises and earn their respect by being firm and professional, not personable and friendly. Don't be stalled or put off. Keep the conversation focused on the bill that's owed and how important it is for everyone involved that the bill be paid. Use words like integrity and honesty a lot. You want your contact to go into meetings with the higher ups seeking payment in full and ready and willing to report back to you on the outcome.
What you're looking for is a champion. You want someone with some backbone who can handle your direct questions - even stand up to a bit. That will be the basis of your working relationship. The business world is really about relationships and if you can develop an ability to establish them you will prosper.
(End)
Jim Finucan is a professional collections manager whose specialized techniques can easily double the amount of past due bills your business brings in. His book - "Past Due - A Bill Collecting Manual" - is a "must have" for any business dealing with past due invoices. More info: http://www.tiare.com/pastdue.htm
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DEBT COLLECTING Q & A, Issue 3
By Jim Finucan
© Tiare Publications Group
Q) My small business has grown over the past year, but the growth has also brought more past due accounts. This is the first year I've had these problems. Am I doing something wrong?
--Tom S., Boulder, CO
Dear Tom:
There's an old saying "If you don't have accounts receivables - why not?" I don't know enough about your billing procedures to know if you're doing anything wrong, but let me start by congratulating you on the increased growth of your business in what was for many a very
difficult year. Because you are doing more business now you are experiencing the associated aches and pains of having more accounts to worry about. Let's look at some basic structure that lays a good foundation for loss prevention.
Do you make your fees clear to the client before agreeing to provide your product or service? Some people are uncomfortable doing this and think it is counter-productive. Nonetheless, subjects like price, payment method and other contract terms should be covered up front. Make sure the customer understands his obligation to you before you do business with him for the first time.
What does your contract include? Do you offer a discount for quick payment? (Sometimes this is a good idea.) Do you specify a certain number of days after which the account is considered delinquent? Is there a clause that allows you to add collection costs, attorney fees and interest if the bill becomes delinquent? If not, those costs will come right out of your own pocket!
And when a bill falls into the delinquent category do you have a procedure to follow? If not you should have such a procedure and you should be sure to follow through on it. (I'll deal with this topic in a later article.) Despite the delinquent accounts it sounds like 2002 was a great year for you. I wish you an even more successful 2003 and beyond.
--Jim Finucan.
Jim Finucan collections "top gun" who has doubled the annual gross collections at every firm he has been associated with. His book - "Past Due - A Collections Manual" shows you how you can achieve the same results in your business. http://www.tiare.com/pastdue.htm
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Collecting Past Due Accounts: Payment Arrangements
Not everyone can qualify for a loan or has a credit card or access to cash from family or friends. Some people are on a fixed income so there will be occasions when you may not be able to locate any assets and your only recourse will be to let the debtor make payments to you over a period of time.
But you need to be careful about how you word any payment plan you set up. Make it very clear to the debtor that the plan is nothing more than a temporary solution and is subject to review at any time. Don't send the debtor anything in writing which commits you to accepting a time payment arrangement. Make it appear, as though, with this one payment you might be able to get a 30-day extension on the account. Ask the debtor if he understands this. Accepting a partial payment can come back to haunt you the next time you call the debtor. He is "insulted"
"I thought you said we had an arrangement for twenty bucks a month. Are you jerking me around?"
This is a common comeback. Inform the debtor that, in your company, all bills are due in full. In fact, they're already well past due by the time they reach your desk. If you don't so inform the debtor he may convince himself the entire matter has been resolved and just Put it out of his mind. Don't do the debtor a disservice by not informing him of this or you will come across as being dishonest.
By Jim Finucan 2004 Tiare Publications
15-year collections professional Jim Finucan can show you how to double the money you collect from your accounts receivable. Check out his unique collections manual "Past Due." For more information visit: http://www.tiare.com/pastdue.htm
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DEBT COLLECTIONS Q & A – Issue #4 (big corporations)
By Jim Finucan
© Tiare Publications
Dear Jim –
I've had it! It's been 90 days since I sold a product to this big
corporation and I haven't seen any money. When I call them I get
a "human resources" person who claims to be waiting for a check to be cut by another department. On top of that she has an attitude like I'm bothering her or something. In the meantime, I'm getting ripped off. What do you suggest? "Almost Postal"
Dear Postal,
I understand - I've been there! But the way you signed off on that
question bothers me. You need to remember to never overreact. The
person who keeps their cool is always the winner in these situations. There's a pretty good chance that her attitude isn't genuine. She is trying to intimidate you or make you angry. If she can do that she stays in charge.
So first of all, keep your cool! Attack the problem with facts. Get
to the department, which cuts the checks and get hold of the
supervisor. Let him or her know that you will be working closely with
them to conclude this transaction. Remember that asking for the name
of the person's supervisor can, easily end bad attitudes or being
given "the ol'run-around." Get both the name and the contact
information.
Write out your opening pitch: why you're calling and what you've done
to try and solve the problem up to now. Example:
"Hello Gary. I'm glad I got a chance to speak with you because I'm
getting really frustrated. Almost 90 days ago we shipped 10,000
Thingamabobs to your company and we haven't been paid. I've talked to Jean in Human Resources several times and she just says the check is coming soon. And let me tell you, that story is getting old! I'm
calling you today as a last resort - looking for you to mail a check
today to prevent legal action on this matter, because that is going
to be the next step we take. ** And I should tell you that you would be named in the suit. So will you help me out today?"
If that person gives you mumbo jumbo about why the bill hasn't been
paid don't get angry, ask them what they will do to get a check out
to you that very day. If you get a negative answer don't let them off
the phone until you find out where the hang up is. Go as far up the
corporate ladder as you can and document every conversation. Add each of these to the verbal history in your pitch. You want to come across as stern but in control.
I know that having to go through all this is a real pain but since
you have to do it, try and enjoy it, knowing that you're giving these
people a real dose of justice, collections style! Good luck!
Jim.
* Never threaten legal action unless you fully intend to follow
through.
(end)
Jim Finucan is a 14-year "top gun"collections veteran and author of
the bill collections manual "Past Due!" For more information visit –
http://www.tiare.com/pastdue.htm
************************************
Debt Collecting Q & A – Issue 5
By Jim Finucan
© Tiare Publications Group
DEBT COLLECTING Q & A - #5
Jim: My question is simple. I don't like to mess around so I just
hand my delinquent accounts over to an attorney who sues the client
right away. I either get a judgment or they pay just before the court
date. Why doesn't everyone do it this way?
Barry (OH)
Barry –
Your approach is effective and often becomes the last resort after
several attempts have been made to reconcile a delinquent debt. But
it's important to decide how long you want to allow a delinquent debt
to remain on the books before you turn it over to a lawyer. Do you
treat each situation the same? i.e. do you wait the same number of
days? Do you send the same number of notices no matter what the
situation? Do you send the debtor a warning letter letting him know
this will go to an attorney if not paid by such and such a date? Is
your attorney a collection specialist who is taking steps to collect
the bill before
moving forward with a court date?
I recommend adopting a specific procedure before you turn your
attorney loose on the debtor. One size doesn't necessarily fit all.
There are times that require understanding the debtor's problem;
situations that might work themselves out if you waited just a little
longer. At worst a few phone calls would let the client know you are
genuinely concerned about their success and are interested in helping
them. This understanding approach cements a relationship and can
result in years of customer loyalty.
But don't get me wrong. Sometimes you need to put the squeeze on.
However, clients need to be listened to so hear them out first. Your
company should have a collections policy that is both specific and
flexible or you are likely lose clients to someone who does make an
effort to understand and accommodate special debt situations.
Before you turn things over to an attorney give the customer an
agreed upon deadline by which you need a certain amount to be paid,
otherwise you'll have to get your attorney involved. Let them know
the situation can't be left up in the air for too long. This approach
increases your chances of having a repeat customer – one who may even refer others to you. A little understanding and compassion can go a long way towards helping your business succeed.
(End)
Jim Finucan is a 12-year collections veteran and author of "Past Due –
A Debt Collections Manual." More information about this powerful
debt collecting tool can be found at: http://www.tiare.com/pastdue.htm
*************************************
DEBT COLLECTING Q & A – Issue 8
By Jim Finucan
© Tiare Publications Group
Dear Jim: My company sold $3,200 worth of merchandise to another
firm some six months ago. When I attempt to pursue payment I learn
that the person who placed the order has left and the company claims
not to have ordered the product and refuses to pay. What do I do?
"Confused in St. Cloud"
Dear Confused:
The biggest problem you face is not that the purchasing agent has
left, but that the debt is old and becomes more difficult to collect
with every passing day. Six months is a long time for an account to
be past due. The agent who purchased the software was acting on
behalf of his employer when he used credit to buy the product and the
company is fully liable. You will need all of your documentation to
prove your case. A contract does not terminate when an agent of the
company leaves. You'll need to educate the company with a firm call
placed to the right person. Don't make your argument to anyone who is
not a decision maker. Go right to the top and talk to the president
or owner. That's a large part of the battle.
Is the argument he gives you the same as you've heard from the
accounts payable people? Sometimes the reasons given for non-payment
vary depending on whom you're talking to. So listen before you go
after him. Here are some points you might make:
Do they, themselves, write off any debt they incur when one of their
client's representatives leave?
As a leader of the company, does he consider himself an honest man?
If so, how does he feel about using your product without paying for
it?
What is the company's status? Are they hurting financially?
Are they frequently sued for non-payment and do they expect credit to
be extended to them?
Is he aware that when a judgment is taken he is responsible - not
only for the full amount but for the accrued interest and the
collection costs as well?
Continue this line of questioning going until you get to the Heart of
his problem – that may well lead you to a happy conclusion.
(End)
Jim Finucan personally developed collection techniques that made him
a "top gun" bill collector. Now these powerful techniques are
available in his book "Past Due! – A Debt Collections Manual. More
information is available at http://www.tiare.com/pastdue.htm
***************************
DEBT COLLECTING Q & A – Issue 9
By Jim Finucan
© Tiare Publications Group
Q) Dear Jim – I had a realtor client who was representing a new
development. I agreed to do a logo for them in order to get the
contract for marketing this new development. The realtor paid half
the invoice for the marketing materials and nothing more, despite
sending certified letters and threatening to withhold usage of the
logo. My lawyer says I have a case but his fees would be more than
the amount I'm owed. And even if I did win in small claims court,
would that judgment have any teeth? Would I be able to collect? Is it
even worth the hassle?
A) I'm a believer in making phone calls to the parties concerned –
even in personal visits when necessary. I'd call this person every
single day for an entire month. Ask him if his lack of action is
standard business procedure for them. As him: "Am I the first guy you
are trying to rip off or do you do this to everyone?" Ask him right
out whether you need to take legal action, and if so, what's their
defense going to be? Write down everything they say in case you need
it in court.
You might also look for a lawyer who won't charge as much as the one
you've talked to. Better yet, take your notes to the clerk of courts
office and start a suit yourself (it's not that hard – your local
library has books on this). Yes, the judgment will be vital in
collecting the debt. Sue the individuals personally, not the
business. Try to get a lien placed on their property or garnish their
wages. You're being taken advantage of. It's your money and you
deserve to be paid!
By the way make sure your future contracts include an 8% interest
charge on amounts unpaid after 60 days and an additional fee for any
costs you may incur in collecting the past due amount.
(End)
Jim Finucan personally developed collection techniques that made him
a "top gun" bill collector. Now these powerful techniques are
available in his book "Past Due! – A Debt Collections Manual. More information is available at http://www.tiare.com/pastdue.htm
**********************************
DEBT COLLECTING Q & A – Issue 10
By Jim Finucan
© Tiare Publications
Q) My most important customer has always been very good about paying invoices on time. But the accountant at that company always gives me an excuse (too busy, being processed now, etc.). We keep waiting but the checks don't arrive. I have called the boss but sometimes he is out of town and can't be reached. The accountant is the person responsible for seeing that invoices are paid so how can I get her to issue checks on time?
A) Late payment problems always originate at the top. The account is
only doing what she has been told to do: delay payment. You need to
begin your collection calls right at the top – with the president or
whoever is the head of the company. Be firm and clear: you need
payment in full by whatever day or date and anything less is
unacceptable. If the CEO acts as though he is unaware of the problem,
politely let him know what the situation is and that you plan to deal
directly with him – the decision maker. Bring him into the circle of
accountability and don't let yourself be put off or handed over to
someone else. Then call the accountant and tell her that you are in
direct communication with the head of the company in making the
overdue invoice a top priority.
Communication is the key. When he says "I have lots of work to do>"
You can say "so do I, and unfortunately that's why I'm calling. This
bill is part of the work you need to do. It's being neglected and I
want my money."
Make the call professional but not pleasant, so they won't want you
to call again. People avoid uncomfortable situations yet that's what
it takes to get through to them. Don't worry about putting stress on
the business relationship; chances are good that it will improve it
and their respect for you will increase.
(End)
Jim Finucan personally developed collection methods that made him
a "top gun" bill collector. Now these powerful techniques are
available in his book "Past Due! – A Debt Collections Manual" More information is available at http://www.tiare.com/pastdue.htm
**************************************
BILL COLLECTING Q & A – Issue 11
By Jim Finucan
© Tiare Publications Group
Jim:
When I work up the nerve to call someone about an overdue bill I
always seem to fold or lose my cool as soon as the other guy throws a reason at me for why the bill hasn't been paid. Do you have any
suggestions?
Patrick, NJ
Dear Patrick:
Offering the debtor a solution to the debt problem and overcoming his excuses is the goal of any collection call. The debtor has to be
persuaded that resolving the debt needs to be a lot higher on his
priority list.
The debtor is bound to give you an objection - a reason why the bill
hasn't been paid. And, you know, there really aren't that many
variations on this theme. I'd strongly recommend that you make a list
of them – and develop a good response for each that you use to can
come back to him. Write out and practice the responses on your own so you'll be able to field the next excuse. Any response you use should be phrased so that it puts the responsibility back on the debtor and, if possible, jack up the urgency in resolving the problem. Your response should end with a solution – a way the debtor could pay the bill. The conversation may go back and forth through five excuses and responses before you can resolve things before you're able to get the debtor to agree to pay the bill in full. At that point you should be able to suggest a way the debtor can take immediate action to end the debt.
Don't let yourself get trapped into a shouting match. You may believe the debtor is a low-life because he's trying to dodge you, but
telling him that isn't going to advance your cause, it'll do just the
opposite. Keep the goal of full payment in front of you.
Taking collections call from "hello" to "paid in full" is an art. It
must first be learned then improved upon and only then brought to
perfection. Don't give up on your efforts!
(End)
Jim Finucan is a 13-year veteran of the collections wars. His
book "Past Due – A Collections Manual" has helped thousands learn how to sail through the collections minefield and collect their past due accounts. More info at: http://www.tiare.com/pastdue.htm
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DEBT COLLECTING Q & A – Issue 12
By Jim Finucan
© Tiare Publications Group
Dear Jim:
An information technology firm owes me almost $40 thousand for
consultant work I did for them. Now they have changed the name of
their firm and had a lawyer send me a letter that claims their bank
has seized their assets. I know this is not true. They are still at
the same location and employ the same people. They just answer the
phone with a different name when I call. I don't know what to do. I
always thought they were a reputable firm.
Mark S., WI
Dear Mark:
This is an old tactic. The letter you got from their lawyer is
inferring that they've filed for bankruptcy when it hasn't. The bank
hasn't seized their assets. The attorney is lying. Check with their
bank and if the situation is as we suspect file a complaint with your
state bar association for the lawyer's unethical practices. Talk to
the attorney about how unethical it is to attempt to hide the assets
of his client so they can stick people. You might also want to imply
that the next time the company pulls a name change maybe it will be
the lawyer's turn not to get paid! Keep making calls to the company
CEO and controller and confront them about their ethics. Ask them
their opinion of the Enron scandal. Talk about filing a lawsuit. Look
for an attorney who will work for a percentage of the amount you
collect. These people are taking you for a bad and painful ride and
if I were you I wouldn't waste a second in going after them at full
steam.
(End)
Jim Finucan has been a top gun collections agent for over 13 year.
You can use his professional techniques and telephone tactics to
actually turn debtor excuses to work in your favor, to actually
double your debt collections. The answers are in "Past Due – A Bill
Collecting Manual." More information at:
http://www.tiare.com/pastdue.htm.
*********************************************************
DEBT COLLECTING Q & A – Issue 13
By Jim Finucan
© Tiare Publications Group
Q) I am in the collections business and I am determined to become as
good at it as you are. The company I work for trains us well but one
of the clients I do collections for just doesn't provide us with
anything to work with. What I mean is that they don't report
delinquents to credit reporting agencies, nor can we threaten to have
the company discontinue service. As result the delinquent account
doesn't take us seriously because they know there's nothing we can
do. Do you have any suggestions for getting around this problem?
A) It's bad policy for a company to expect anyone to achieve
collections and not provide you with any ammunition to achieve the
desired result. That makes it very tough on the collector.
One approach you can try is to work on the debtor's self image, his
pride. "Aren't you the type of person who pays her bills?" is a
question you should ask early in the phone call. "What do you think
of people who don't keep their promises?" Ask those questions quietly
and with genuine feeling and try to get the debtor to give you a
promise to pay the bill.
Close with "Now do I have your word that you will mail that
check?" "And your word is good, right?" "Well, I guess I'm going to
find out."
If the debtor can feel your sincerity and conviction the chances are
pretty good that he'll come through with a check. Keep at it, and
good luck in your effort to become the best!
(End)
Jim Finucan is a top gun bill collector whose collections
manual "Past Due" explains how you can to double your debt
collections almost overnight. More info is at:
http://www.tiare.com/pastdue.htm
********************************************
DEBT COLLECTING Q & A – Issue 14
By Jim Finucan
© Tiare Publications Group
Q) Jim – We're having real problems in collecting from a couple of
our larger accounts and are therefore considering turning the job
over to a collections agency. However, I'm wondering it the next step in this process should be to call in a lawyer. What do you think?
Robert Brunns,
Youngstown, OH
Dear Robert: There are attorneys specialize in collections and their
methods could work for you – simply because the letters they send to
debtors have the imprimatur of a law firm. But, on the average,
lawyers are not particularly skilled in the collections field.
A collections agency should be called on only as a last resort. It's
much cheaper if your firm can do its own collections, even if you run
into some particularly rough customers from time to time. An agency
is more likely to know how to go about getting an involuntary payment out of a debtor once a judgment has been issued. For instance, an agency has a skip tracing department that has contracts in such places as banks, phone companies and other information sources and can also use information from a credit file to affect a wage garnishment. Or they can find out from the bank how much money is in a checking or saving account because, once a judgment has been issued by the court, anything over $1,000 in such an account can simply be garnisheed.
If you decide to turn those extra difficult accounts over to an
agency, don't wait too long to do so. The older an account gets the
harder it is to collect. People move on, change employers or another
collector gets to the debtor first leaving you with the leftovers.
Steps should be taken about a delinquency within 90 days of it
reaching that stage.
(End)
Jim Finucan is top gun collections pro whose debt collecting
manual "Past Due" can help you double your debt collection dollars.
To order or for more information please visit:
http://www.tiare.com/pastdue.htm
Master collector Jim Finucan knows all about the dances, dodges and delays debtors will try to pull. Let Jim show you how to double or even triple the money you collect from your accounts receivable
DEBT COLLECTING Q & A - Issue 2
By Jim Finucan
© Tiare Publications Group
Dear Jim,
I have a client who, for the most part, is an excellent customer. However, I've run into a problem. He has refused to pay a $7,500 bill, claiming that they had to hire someone else to re-do the work we did for them. I've spent a great deal of time developing this
relationship and I don't want to end it. On the other hand, I don't want to be looked on as an easy mark and get taken. What should I do?
--Ticked Off in Jersey
Dear Ticked Off,
This does not sound like a case of someone taking your services and then claiming they don't have the money to pay you. It's important to be able to recognize the difference between a genuinely disputed bill and someone who is deliberately trying to rip you off. This appears
to be a quality client, the kind you want to keep and nurture. I'm guessing that your business relationship with this client has resulted in a lot more income for you than the $7500 in question. Put your experience and business skills to work here and ask yourself
some questions:
Is the client a repeat customer?
How long have you had this client?
Have they paid on time in the past?
Have they given you referrals?
Can you see their side in this dispute?
How much money is involved?
Is losing that amount worth saving the relationship?
Is the client likely to give you more work in the future?
High much might the client be worth to you in the future?
Find out what caused the misunderstanding. Maybe someone messed up on your end. Calmly and clearly communicate your position to the client. Be polite! Don't push. Seek information, not confrontation. If no understanding can be reached, forget about the money and don't bring
up the subject again. If you see the client as being a big part of your future you may want to forgive the debt without any further inquiry on your part. Instead, send them a large box of candy and a pair of tickets to the theater or a ball game.
Jim Finucan is a top gun professional bill collector. His book "Past Due - A Bill Collecting Manual" has helped many businesses double their debt collections using the professional techniques he has developed over 15 years. More info at: http://www.tiare.com/pastdue.htm
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How to Keep a Collections Call On Track
by Jim Finucan
Q) Jim – How do I go about putting myself on the debtor's level, i.e. empathizing with him?
A) You are certainly on the right track if you are thinking along these lines. To collect a debt you have to be able to use some advanced communications skills. People won't accept help or consultation from someone who talks down to them or doesn't really listen to their problem. You can connect with the debtor and guide him or her out of their problem if you try to find a common bond and use that as a way to connect with them.
Everything in our business and personal lives is about building relationships. You don't need a lot of time to do that – which is good because on a collections call you don't have very much time.
First, listen to the debtor. Don't interrupt when they are speaking;let them know you are following what they are saying. Ask a key question at the right moment. Then, when you think you've listened long enough, change the direction of the call by saying "I understand…" and mention something in their story or experience you can relate to. Then continue, using words like "However, you have to recognize the need for payment of the debt on these grounds" and calmly give them the reason why and the way they can solve the problem by using the assets they have in order to obtain credit or assistance.
Explain how non-payment will only make things worse. At the same time make reference to the problems they've told you about but, at the same time, don't let those problems be turned into excuses. If you treat their problem like a minor obstacle you may help them to understand that it can be overcome and thus find a solution. Empathizing with the debtor is vital to a collection call if it is to succeed.
Debt collections expert Jim Finucan shows you how to double your
collections success in "Past Due – A Debt Collecting Manual." More
info on this unique book is available at: http//www.tiare.com/pastdue.htm
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COLLECTING PAST DUE ACCOUNTS: Letting a Call Get Personal
By Jim Finucan
C 2004 Tiare Publications
"How about you? Didn't you ever fall behind on a bill and couldn't pay on time?"
When a debtor says something like this - be careful! The debtor is trying to pull you off your professional pedestal and personally involve you in the call. If things head in this direction you'll lose control of the call. Who knows where it might lead? Probably not to the goal you want.
"That has nothing to do with your bill." Such a response is a way to stop an attempt to involve you personally. Quickly move on to obtaining information or dunning for the balance if the call has reached that stage. Sometimes when you question the debtor he may try to turn the tables on you.
"How much do you make a month"?
"That's irrelevant."
"If it's irrelevant then so is how much I make."
"Not true, Mr. Jones. You have a debt here and that makes your income a concern to this office,"
Not allowing the debtor to draw you into a verbal duel keeps the call on a professional level. You need to keep your wits - as well as a touch of sensitivity - in order to know when to make the move over to the debtor's side and gain his cooperation.
If you don't think some debtors are extremely intelligent you underestimate your opposition. Just as you get better with each call you place, so do debtors who repeatedly find themselves in collections. An experienced debtor may try to draw you into the call on his level and then take control.
"It's just so hard with three kids to feed. Do you have kids?"
Don't answer a question like that. Another favorite line is:
"How can you do that job?"
Ignore this, too. Reply with a question related to the bill or go into the dun.
Remember, the debtor is attempting to take control of the call, trying to hide behind insincere sentimentality. These tricks have worked for him in the past. They shouldn't have any effect on you.
Jim Finucan knows all about the dances, dodges and delays debtors will try to pull. Let Jim show you how to double or even triple the money you collect from your accounts receivable. Check out his unique collections manual "Past Due." For more information visit: www.tiare.com/pastdue.htm
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Collecting Past Due Accounts: Be A Bulldog With Those Past Due Invoices
By Jim Finucan
Make no mistake if you forget about that past due invoice, so will the guy who owes it to you!
Professional collectors have an advantage over the in-house commercial collection agent in the technology they use. They work from highly sophisticated systems that dial collection calls automatically, identify and track an outstanding bill and program it for frequent phone follow-up. There is no way an outstanding bill gets overlooked.
But you don't need a $30,000 dialer to give voice to your bill, just a little self-discipline. Force yourself to get into the habit of making calls to the debtor every day, and do not give up! Call the debtor at different times of the day; vary your style, voice and pitch. When you run into a really tough situation you need to act like a bulldog. Turn up the intensity as needed.
Call anyone and everyone in the company that you have a number for. Assume your conversation will be the topic of discussion in a meeting it will if your call is firm and unusual enough. If all you can reach is someone's voice mail, utilize it as a last resort. If you reach the CEO make your message something like this:
"Donny, you're not going to make it to the cover of Time unless you start returning call from people to whom you owe money. With all this corporate scandal in the news it's good to see that you are a light of integrity in the business world. Don't be afraid to return my call. My number is -----"
Sound tough? You bet! It had better be tough and so had you. Let him have it, because he is ripping you off, he's a thief. When he returns the call he'll be upset and that's good, that's half the battle. Hold your ground and state your position, don't yield or settle for less than the balance in full.
Jim Finucan is the author of "Past Due" a debt collection manual which teaches you the inside techniques to get past the dances, dodges and delays debtors use and even turn their excuses to your advantage! More info at: http://www.tiare.com/pas
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Haven't You Waited Long Enough to Get Paid?
by Jim Finucan
Business-to-business debt collecting is a different ball gamecompared to collecting from an individual debtor. Once abusiness debtor has owed you for quite awhile it's perfectly OKto take the gloves off and go all in an effort to get the Money.After all, things have reached the point where you wouldn't dobusiness with that outfit again anyway so you have nothing moreto lose! But first, be clear about what your objective is:getting the balance owed to you paid in full. Don't be willingto accept anything short of that. .
It's OK to threaten legal action (if carried out, this wouldcreate a public record showing that this firm is stealing fromyou). Essentially you are going to be calling this person athief to try and make him see himself as you see him and thusmake him change his mind about paying you. You simply cannot betimid about it, nor can you approach the campaignhalf-heartedly. The debtor already has you figured as apushover. He already has a catalog of excuses set-aside just foryou, so it's up to you to convince him otherwise. You have tohave a mindset ready to sweep excuses aside and convince him youmean business.
First, be sure you've reached the right person. Don't messaround with underlings or gatekeepers - they don't cut thechecks. You want the owner or the guy who authorized thepurchase and is now telling someone else to ignore yourinvoices. Seek him out. Call him as often as you need to, evenat home in the evenings if necessary. Let him know in words ortone of voice that you are angry, and don't be overly concernedwith business etiquette; it doesn't apply here. In fact, thefederal Fair Debt Collection Practices Act does not covercommercial transactions so you are pretty much free to tryanything, although common sense suggests you avoid doinganything that would reflect badly on you or your firm.
Here are some examples you might want to use:
You received the product, now I want my money, and you're goingto pay it whether you want to or not
I have personal knowledge (if you do) of the assets you hold.Now how are we going to settle this?
Are you a man of your word?
What kind of operation are you running there?
Are you ripping off other people as well?
Would you say your conduct here is honorable? (With this one, beready for the debtor to try some self- justification. This willreveal how he justifies his conduct. When you spot the excuse,point it out to him)
It's imperative that you stamp out any objection or stalltactics he may try until you have him on the ropes. Then you cantry to reason with him; just don't waver in your insistence onfull and complete payment.
Jim Finucan has over a dozen years as a top gun debt collector.His debt collection manual Past Due! can show you how to doubleyour debt collections. More info is athttp://www.tiare.com/pastdue.htm
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JIM FINUCAN'S BILL COLLECTING Q & A Issue #1
Dear Jim
I keep running into guys who say they just don't have the money.When I hear that I start to lose my resolve. What can I do?
First, you need to be absolutely convinced in your own mindbefore you even start the call - that you deserve to be paid andyou're going to get the money. Everybody has it withinthemselves to fight for what is theirs. Think of your pastaccomplishments and get yourself pumped up ahead of time. It'sessential that you to come across as strong and determined onthe phone, otherwise the debtor will sense your weakness. Andyou can bet that he will try to use that weakness against you.
When he says he doesn't have the money to pay you, start askinghim questions about his financial situation. Is he paying hisemployees these days, or are they working for vouchers? Has hemade any major purchases in the last 60 days? Could he getapproved for a loan? What kind of car does he drive? What's hisaverage annual income? He's not going to be prepared for allthese questions so he'll have to think fast - make up lieson-the-spot. One of them bound to be ridiculous and thus easy tospot. When it comes call him on it. It's time to shame him andshame him good
"That's ridiculous." "How na�ve do you think I am?" "Who do youthink you're kidding?" "Do you handle all your business affairsas pathetically as this?" "Do the other businesses you deal withknow you're in such a bad situation?"
If he is having trouble paying some of his bills it's likely theother people he deals with aren't aware of his situation,because he knows they won't stand for the kind of crap he ispulling on you, so he doesn't try it on them.. And you shouldn'tlet him pull it on you, either.
He wants you to feel sorry for him. By creating a situationwhere he has to lie, and then making him explain his lies he maybegin to realize just how pathetic he sounds to others. I firmlybelieve that even someone with a comatose conscience can beawakened and turned around by using this approach.
Jim Finucan has over a dozen years as a top gun debt collector.His debt collection manual Past Due! can show you how to doubleyour debt collections. More info is athttp://www.tiare.com/pastdue.htm
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DEBT COLLECTING Q & A - Issue 2
By Jim Finucan
© Tiare Publications Group
Dear Jim,
I have a client who, for the most part, is an excellent customer. However, I've run into a problem. He has refused to pay a $7,500 bill, claiming that they had to hire someone else to re-do the work we did for them. I've spent a great deal of time developing this
relationship and I don't want to end it. On the other hand, I don't want to be looked on as an easy mark and get taken. What should I do?
--Ticked Off in Jersey
Dear Ticked Off,
This does not sound like a case of someone taking your services and then claiming they don't have the money to pay you. It's important to be able to recognize the difference between a genuinely disputed bill and someone who is deliberately trying to rip you off. This appears
to be a quality client, the kind you want to keep and nurture. I'm guessing that your business relationship with this client has resulted in a lot more income for you than the $7500 in question. Put your experience and business skills to work here and ask yourself
some questions:
Is the client a repeat customer?
How long have you had this client?
Have they paid on time in the past?
Have they given you referrals?
Can you see their side in this dispute?
How much money is involved?
Is losing that amount worth saving the relationship?
Is the client likely to give you more work in the future?
High much might the client be worth to you in the future?
Find out what caused the misunderstanding. Maybe someone messed up on your end. Calmly and clearly communicate your position to the client. Be polite! Don't push. Seek information, not confrontation. If no understanding can be reached, forget about the money and don't bring
up the subject again. If you see the client as being a big part of your future you may want to forgive the debt without any further inquiry on your part. Instead, send them a large box of candy and a pair of tickets to the theater or a ball game.
Jim Finucan is a top gun professional bill collector. His book "Past Due - A Bill Collecting Manual" has helped many businesses double their debt collections using the professional techniques he has developed over 15 years. More info at: http://www.tiare.com/pastdue.htm
********************************
Debt Collecting Q & A Issue 6
DEBT COLLECTING Q & A - Issue #6 By Jim Finucan � TiarePublications Group 385 words
Editor: The following article is offered for your free use,provided the author Resource box is included at the end.
Q) Jim: How can I be sure that I've gotten to the heart of theproblem when I suspect the debtor is being insincere, or evendishonest?
A) Use a technique called ""funneling." It's a method ofquestioning that begins on a broad level and becomes morespecific as you progress. Narrow in and focus on the responseyou're getting until your suspicions are either confirmed or youcan accept the debtor's excuses as genuine. A typicalconversation might go something like this:
"Is there anything preventing you from sending the check for thebalance tomorrow?" "I can't send it tomorrow; I won't be in theoffice." "That's hardly a problem; you could mail it outtonight, before you leave. Do you agree?" "I told you, I justcan't." "You mean, I provide the services to you when you needthem and you're the kind of person who won't pay because youdon't have the time? Is that right? "No, it's not like that.""Then you need to tell me now what it is like. What is it,that's stopping you from taking care of this obligation andleaving yourself exposed to legal action?" "The company justdoesn't have the funds available." "All right, Tom," (Note thatthe story is changing here. This reason is either more accurateor another stall tactic.) "What I need you to understand is thatexcuse doesn't concern me one way or the other. When yourcompany needs funds to continue operating what do you do? Thatcheck needs to be in the mail by tomorrow at the latest."
And regardless of his answer, find out which bills are beingpaid and which ones are not - and why yours is one of those noton the "pay" list.
Funneling down into an excuse with a more precise line ofquestioning uncovers the true intentions of a debtor. In fact,this technique actually helps the debtor see himself acting in away that is not congruent with his own beliefs. That exposurewill help him make more honest and forthright decisions in thefuture.
If something doesn't feel right during a collections callquestion it! Throw a whole series of sharp, penetratingquestions at it until it cracks. Then both sides can identifyand solve the sense of the problem.
(end)
Jim Finucan has over a dozen years as a top gun debt collector.His debt collection manual Past Due! can show you how to doubleyour debt collections. More info is athttp://www.tiare.com/pastdue.htm
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pic of Finucan at http://www.translationdirectory.com/article632.htm
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Haven't You Waited Long Enough to Get Paid?
by Jim Finucan © 2001 Tiare Publications
Business-to-business debt collecting is a different ball game compared to collecting from an individual debtor. Once a business debtor has owed you for quite awhile it's perfectly OK to take the gloves off and go all in an effort to get the Money. After all, things have reached the point where you wouldn't do business with that outfit again anyway so you have nothing more to lose! But first, be clear about what your objective is: getting the balance owed to you paid in full. Don't be willing to accept anything short of that. .
It's OK to threaten legal action (if carried out, this would create a public record showing that this firm is stealing from you). Essentially you are going to be calling this person a thief to try and make him see himself as you see him and thus make him change his mind about paying you. You simply cannot be timid about it, nor can you approach the campaign half-heartedly. The debtor already has you figured as a pushover. He already has a catalog of excuses set-aside just for you, so it's up to you to convince him otherwise. You have to have a mindset ready to sweep excuses aside and convince him you mean business.
First, be sure you've reached the right person. Don't mess around with underlings or gatekeepers - they don't cut the checks. You want the owner or the guy who authorized the purchase and is now telling someone else to ignore your invoices. Seek him out. Call him as often as you need to, even at home in the evenings if necessary. Let him know in words or tone of voice that you are angry, and don't be overly concerned with business etiquette; it doesn't apply here. In fact, the federal Fair Debt Collection Practices Act does not cover commercial transactions so you are pretty much free to try anything, although common sense suggests you avoid doing anything that would reflect badly on you or your firm.
Here are some examples you might want to use:
You received the product, now I want my money, and you're going to pay it whether you want to or not
I have personal knowledge (if you do) of the assets you hold. Now how are we going to settle this?
Are you a man of your word?
What kind of operation are you running there?
Are you ripping off other people as well?
Would you say your conduct here is honorable? (With this one, be ready for the debtor to try some self- justification. This will reveal how he justifies his conduct. When you spot the excuse, point it out to him)
It's imperative that you stamp out any objection or stall tactics he may try until you have him on the ropes. Then you can try to reason with him; just don't waver in your insistence on full and complete payment.
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Jim Finucan has more than 12 years as a "top gun" in the collections business. Visit Tiare.com for more information on bill collecting and his debt collections manual - Past Due
*********************************
Collecting Past Due Accounts - Dealing With Debtors
15th August 2005
Author: Jim Finucan
COLLECTING PAST DUE ACCOUNTS: Dealing With Deadbeats
By Jim Finucan
� 2005 Tiare Publications
239 words
A deadbeat is someone who feels no regret about sticking someone
else with a bill. He can bounce checks, hang up on a collector and
then pick up his TV remote without a bit of concern for the person
or company he just stiffed. He can take your advice, go get a
consolidation loan � and then spend the money on a big screen HDTV.
There are a lot of people in this unhappy category and sooner or
later you're going to find one of them at the other end of your
collections call.
Even though you're likely to view this attitude with great distaste
you have to try and find at least one thing to like about the person
you've classified as a deadbeat. The ability to uncover that one
likeable quality isn't easy to develop but with practice it can be
done. Work at trying to find likeable qualities in people you meet
outside of your collections work. That will give you many additional
opportunities to practice.
When you do find that something, the debtor will sense it through
your choice of words and tone of voice and, as a result, will become
easier to work with.
It's important not to come across as being judgmental. When you
judge others you put yourself above them. People need to feel that
you are working with them on their level.
(End)
Jim Finucan knows all about the dances, dodges and delays debtors
will try to pull. Let Jim show you how to double or even triple the
money you collect from your accounts receivable. Check out his
unique collections manual "Past Due." For more information visit:
http://www.tiare.com/pastdue.htm
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Debt Collecting Q & A - Keeping Your Composure, Issue 7
by Jim Finucan
Question: Dear Jim - I'm an administrative assistant and I do bill collections for our company. Some of the owners who owe us money act like they are real big shots; they just walk all over me so I end up getting flustered, losing my composure and often I don't get the money. I've read your book, "Past Due," and gotten a lot from it, but sometimes I just can't get through those four steps in the collection call before I lose them. What should I do?
Jeanne,
Austin, MN
Answer: I have felt the same way at times. Try to develop a technique called pacing. Within the first few moments of the call try and get a feel for the kind of person you are dealing with. Listen to their tone of voice and speed of speech, then try and at least match it or do it better than they do if you can. Owners like to direct and usually like to deal with their own kind -authoritative, direct, pulling no punches. They're not bad people, understand, they just handle life differently than most of us. So put yourself into a mode they will understand and respect, for example:
"I don't have time to talk to your right now, I'm very busy."
"Wait a minute, Mr. Jones, I'm busy too, and I resent the fact I have to call you to bring to your attention the money you owe us. Being a busy man, can you imagine how insulting that is to me?
That opening should get him away from the condescending attitude he's taken because his company is bigger than yours, you're a woman or whatever his throttle is stuck on. Either knock him down or bring yourself up to his level, and don't listen to the little voice in your head that's making you nervous about speaking to people who carry authority and power. See them as debtors and nothing more. That's really all that should matter to you in these kinds of situations. In the long run you'll end up getting respect from them - and very likely the money they owe you as well!
Jim Finucan is a fifteen-year collections expert. His book "Past
Due - A Debt Collections Manual" shows you how you can double your debt collections. For more information visit:http://www.tiare.com/pastdue.htm
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Debt Collection Techniques: Making Tax Season Work for You
by Jim Finucan
Income tax refunds to debtors can be drawn upon to settle a balance when you dun and do a proper follow-up. Indeed, You can actually triple your collection amounts during tax season!
In January, pinpoint the accounts that might have refunds coming. Include a question in the "facts" part of your call as to whether the debtor expects to get a refund. Then keep tabs on them and in your conversations repeatedly confirm that they will use the refund to pay your bill. Watch out for "reduction tactics" which the debtor may try around the time he expects the refund check to arrive �
"I just found out that the refund isn't going to be as much as I thought/" (sounding sincerely disappointed.)
You should then request immediate documentation of this lower figure and inform the debtor that further collection procedures will now be implemented. Then discuss other ways the debtor can come up with the money.
If the debtor becomes evasive or doesn't respond to your messages around the time he expects his check don't hesitate to call him at work. If you haven't been "ceased" from doing this (see pages 24-25).
You need to stay on top of this situation because you'll often find yourself competing with collectors from other businesses who are also after this guy. Those who are most efficient, who are firmest in their demands, are the ones who'll bring in the bucks.
By Jim Finucan � 2005 Tiare Publications
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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Q) Are there any laws I must follow in pursuing debtors?
A) Yes. And no. If you are employed by a collection agency you are bound by the Fair Debt Collection Practices Act of 1974. This law should be available at your collections agency or you might find a copy at your library (I cover the main points of this law in my book). The law governs such things as the times during which calls can beamed, things you can and cannot say and so on. A collection agency is largely responsible for the training and education of its own collection agents.
If you are a private business you are really governed only be the unwritten laws of decent human conduct. Harassment is contacting someone with the intent to annoy. You are contacting with the intent to collect a legally incurred debt, so you are covered. Now, you obviously can't beat someone up or threaten him or her with harm but you can speak plainly and directly as someone who is owed money � and so you should. Say what you wish to say and think about what would strike a nerve with the debtor. Confront him with his actions in a straightforward manner and don't worry about being thought "mean." Debtors need to hear the truth whether they likeit or not.
The thing you need to be aware of is harassment. You won't cross the line into being guilty of this if you keep your focus clear � and that's collection of the debt. Don't heckle the debtor or engage him in a personal battle. Keep it on a professional level. Be aggressive and use your good sense. Stay with techniques that are strong and just and you'll be in good shape.
(End)
By Jim Finucan � Tiare Publications Group
Jim Finucan is a 15-year collections veteran whose techniques have proven to double collections time aftertime. They're laid out in "Past Due � A Debt Collection Manual." More info sat: http://www.tiare.com/pastdue.htm
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Collecting Past Due Accounts - Notice Of Listing
The Notice of Listing law is aimed at regulating the actions of collection agencies and their operatives.
You should be familiar with it even if you are a small business owner or work in the accounts receivable department. Following the same rules as the professionals do will help protect you from lawsuits.
Every collection agency is required to send a "Notice of Listing" when they receive an account for collection. This letter is the first word the debtor gets from the agency. It informs him that a particular business has turned his debt over to a collection agency.
The Notice of Listing includes a sort of "Miranda warning" which informs the debtor that this is an attempt to collect a debt and that any information obtained maybe used for that purpose. If the debt is going to be placed on the debtor's credit report, the debtor must be given 30 days to respond before that action is taken. If your Notice of Listing indicates that you are going to put the debt on the debtor's credit report you cannot send the debtor anything more for at least 30 days, during which time the debtor can dispute the debt. To do this the debtor has to send a letter stating that he disputes the bill. He does not have to give a reason.
At this point Fair Debt Collection Protection Act (FDCPA) rules require a collection agency to send a validation of the debt. This is an itemized statement or copy of the client's original billing. Once this has been sent to the debtor you can begin taking action to collect the bill. Be sure you do not take any action on the account until you have sent the validation to the debtor. The debtor has the right to request validation of the debt any time within 30 days of its having been placed with the collection agency.
You can contact the debtor by phone within the 30-day period, but you have to be very careful about what you say. You can ask for the balance in full but you cannot demand it, nor can you threaten legal consequences within the 30-day period. You can advise the debtor to pay in full before the debt goes on his credit report, which normally happens at the end of the 30 days. (This is a powerful tool, by the way). You can also ask for information about the debtor, just as you do in a regular collection call. Whatever you say in a phone call in this situation must be put in the form of a question.
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About the Author:
Jim Finucan has over a dozen years as a collections professional. Time and again his techniques have helped businesses double their collections income. His book "Past Due – A Collections Manual" is a must have for any business with accounts who are past due. More info: http://www.tiare.com/pastdue.htm
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Getting Inside Help to Collect That Past Due Bill
by Jim Finucan
A frequent problem in commercial collections is the inability to reach the decision maker. The president of the company insulates himself against such bothersome issues as unpaid invoices through a layer of VPs and department heads. Trying to fight your way through to the top guy in order to get your money can be the height of frustration.
Sometimes you just can't climb all the way to the top and you have to settle for dealing with a vice president or the accounts payable manager. The goal here is to find someone who will be on your side, become a champion for your cause. Yes, it can be done. Work to build a relationship through your calls, a relationship based on truth and respect. Ask direct questions about how much authority this person has and use him or her to help get you as near to the top-level decision makers as you can. When you've made it as far up as you can go, listen to the challenges this person is dealing with and then suggest a solution that allows the two of you to work together to eliminate the need for further collection procedures.
Hold your inside contact accountable for their promises and earn their respect by being firm and professional, not personable and friendly. Don't be stalled or put off. Keep the conversation focused on the bill that's owed and how important it is for everyone involved that the bill be paid. Use words like integrity and honesty a lot. You want your contact to go into meetings with the higher ups seeking payment in full and ready and willing to report back to you on the outcome.
What you're looking for is a champion. You want someone with some backbone who can handle your direct questions - even stand up to a bit. That will be the basis of your working relationship. The business world is really about relationships and if you can develop an ability to establish them you will prosper.
(End)
Jim Finucan is a professional collections manager whose specialized techniques can easily double the amount of past due bills your business brings in. His book - "Past Due - A Bill Collecting Manual" - is a "must have" for any business dealing with past due invoices. More info: http://www.tiare.com/pastdue.htm
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DEBT COLLECTING Q & A, Issue 3
By Jim Finucan
© Tiare Publications Group
Q) My small business has grown over the past year, but the growth has also brought more past due accounts. This is the first year I've had these problems. Am I doing something wrong?
--Tom S., Boulder, CO
Dear Tom:
There's an old saying "If you don't have accounts receivables - why not?" I don't know enough about your billing procedures to know if you're doing anything wrong, but let me start by congratulating you on the increased growth of your business in what was for many a very
difficult year. Because you are doing more business now you are experiencing the associated aches and pains of having more accounts to worry about. Let's look at some basic structure that lays a good foundation for loss prevention.
Do you make your fees clear to the client before agreeing to provide your product or service? Some people are uncomfortable doing this and think it is counter-productive. Nonetheless, subjects like price, payment method and other contract terms should be covered up front. Make sure the customer understands his obligation to you before you do business with him for the first time.
What does your contract include? Do you offer a discount for quick payment? (Sometimes this is a good idea.) Do you specify a certain number of days after which the account is considered delinquent? Is there a clause that allows you to add collection costs, attorney fees and interest if the bill becomes delinquent? If not, those costs will come right out of your own pocket!
And when a bill falls into the delinquent category do you have a procedure to follow? If not you should have such a procedure and you should be sure to follow through on it. (I'll deal with this topic in a later article.) Despite the delinquent accounts it sounds like 2002 was a great year for you. I wish you an even more successful 2003 and beyond.
--Jim Finucan.
Jim Finucan collections "top gun" who has doubled the annual gross collections at every firm he has been associated with. His book - "Past Due - A Collections Manual" shows you how you can achieve the same results in your business. http://www.tiare.com/pastdue.htm
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Collecting Past Due Accounts: Payment Arrangements
Not everyone can qualify for a loan or has a credit card or access to cash from family or friends. Some people are on a fixed income so there will be occasions when you may not be able to locate any assets and your only recourse will be to let the debtor make payments to you over a period of time.
But you need to be careful about how you word any payment plan you set up. Make it very clear to the debtor that the plan is nothing more than a temporary solution and is subject to review at any time. Don't send the debtor anything in writing which commits you to accepting a time payment arrangement. Make it appear, as though, with this one payment you might be able to get a 30-day extension on the account. Ask the debtor if he understands this. Accepting a partial payment can come back to haunt you the next time you call the debtor. He is "insulted"
"I thought you said we had an arrangement for twenty bucks a month. Are you jerking me around?"
This is a common comeback. Inform the debtor that, in your company, all bills are due in full. In fact, they're already well past due by the time they reach your desk. If you don't so inform the debtor he may convince himself the entire matter has been resolved and just Put it out of his mind. Don't do the debtor a disservice by not informing him of this or you will come across as being dishonest.
By Jim Finucan 2004 Tiare Publications
15-year collections professional Jim Finucan can show you how to double the money you collect from your accounts receivable. Check out his unique collections manual "Past Due." For more information visit: http://www.tiare.com/pastdue.htm
*******************************
DEBT COLLECTIONS Q & A – Issue #4 (big corporations)
By Jim Finucan
© Tiare Publications
Dear Jim –
I've had it! It's been 90 days since I sold a product to this big
corporation and I haven't seen any money. When I call them I get
a "human resources" person who claims to be waiting for a check to be cut by another department. On top of that she has an attitude like I'm bothering her or something. In the meantime, I'm getting ripped off. What do you suggest? "Almost Postal"
Dear Postal,
I understand - I've been there! But the way you signed off on that
question bothers me. You need to remember to never overreact. The
person who keeps their cool is always the winner in these situations. There's a pretty good chance that her attitude isn't genuine. She is trying to intimidate you or make you angry. If she can do that she stays in charge.
So first of all, keep your cool! Attack the problem with facts. Get
to the department, which cuts the checks and get hold of the
supervisor. Let him or her know that you will be working closely with
them to conclude this transaction. Remember that asking for the name
of the person's supervisor can, easily end bad attitudes or being
given "the ol'run-around." Get both the name and the contact
information.
Write out your opening pitch: why you're calling and what you've done
to try and solve the problem up to now. Example:
"Hello Gary. I'm glad I got a chance to speak with you because I'm
getting really frustrated. Almost 90 days ago we shipped 10,000
Thingamabobs to your company and we haven't been paid. I've talked to Jean in Human Resources several times and she just says the check is coming soon. And let me tell you, that story is getting old! I'm
calling you today as a last resort - looking for you to mail a check
today to prevent legal action on this matter, because that is going
to be the next step we take. ** And I should tell you that you would be named in the suit. So will you help me out today?"
If that person gives you mumbo jumbo about why the bill hasn't been
paid don't get angry, ask them what they will do to get a check out
to you that very day. If you get a negative answer don't let them off
the phone until you find out where the hang up is. Go as far up the
corporate ladder as you can and document every conversation. Add each of these to the verbal history in your pitch. You want to come across as stern but in control.
I know that having to go through all this is a real pain but since
you have to do it, try and enjoy it, knowing that you're giving these
people a real dose of justice, collections style! Good luck!
Jim.
* Never threaten legal action unless you fully intend to follow
through.
(end)
Jim Finucan is a 14-year "top gun"collections veteran and author of
the bill collections manual "Past Due!" For more information visit –
http://www.tiare.com/pastdue.htm
************************************
Debt Collecting Q & A – Issue 5
By Jim Finucan
© Tiare Publications Group
DEBT COLLECTING Q & A - #5
Jim: My question is simple. I don't like to mess around so I just
hand my delinquent accounts over to an attorney who sues the client
right away. I either get a judgment or they pay just before the court
date. Why doesn't everyone do it this way?
Barry (OH)
Barry –
Your approach is effective and often becomes the last resort after
several attempts have been made to reconcile a delinquent debt. But
it's important to decide how long you want to allow a delinquent debt
to remain on the books before you turn it over to a lawyer. Do you
treat each situation the same? i.e. do you wait the same number of
days? Do you send the same number of notices no matter what the
situation? Do you send the debtor a warning letter letting him know
this will go to an attorney if not paid by such and such a date? Is
your attorney a collection specialist who is taking steps to collect
the bill before
moving forward with a court date?
I recommend adopting a specific procedure before you turn your
attorney loose on the debtor. One size doesn't necessarily fit all.
There are times that require understanding the debtor's problem;
situations that might work themselves out if you waited just a little
longer. At worst a few phone calls would let the client know you are
genuinely concerned about their success and are interested in helping
them. This understanding approach cements a relationship and can
result in years of customer loyalty.
But don't get me wrong. Sometimes you need to put the squeeze on.
However, clients need to be listened to so hear them out first. Your
company should have a collections policy that is both specific and
flexible or you are likely lose clients to someone who does make an
effort to understand and accommodate special debt situations.
Before you turn things over to an attorney give the customer an
agreed upon deadline by which you need a certain amount to be paid,
otherwise you'll have to get your attorney involved. Let them know
the situation can't be left up in the air for too long. This approach
increases your chances of having a repeat customer – one who may even refer others to you. A little understanding and compassion can go a long way towards helping your business succeed.
(End)
Jim Finucan is a 12-year collections veteran and author of "Past Due –
A Debt Collections Manual." More information about this powerful
debt collecting tool can be found at: http://www.tiare.com/pastdue.htm
*************************************
DEBT COLLECTING Q & A – Issue 8
By Jim Finucan
© Tiare Publications Group
Dear Jim: My company sold $3,200 worth of merchandise to another
firm some six months ago. When I attempt to pursue payment I learn
that the person who placed the order has left and the company claims
not to have ordered the product and refuses to pay. What do I do?
"Confused in St. Cloud"
Dear Confused:
The biggest problem you face is not that the purchasing agent has
left, but that the debt is old and becomes more difficult to collect
with every passing day. Six months is a long time for an account to
be past due. The agent who purchased the software was acting on
behalf of his employer when he used credit to buy the product and the
company is fully liable. You will need all of your documentation to
prove your case. A contract does not terminate when an agent of the
company leaves. You'll need to educate the company with a firm call
placed to the right person. Don't make your argument to anyone who is
not a decision maker. Go right to the top and talk to the president
or owner. That's a large part of the battle.
Is the argument he gives you the same as you've heard from the
accounts payable people? Sometimes the reasons given for non-payment
vary depending on whom you're talking to. So listen before you go
after him. Here are some points you might make:
Do they, themselves, write off any debt they incur when one of their
client's representatives leave?
As a leader of the company, does he consider himself an honest man?
If so, how does he feel about using your product without paying for
it?
What is the company's status? Are they hurting financially?
Are they frequently sued for non-payment and do they expect credit to
be extended to them?
Is he aware that when a judgment is taken he is responsible - not
only for the full amount but for the accrued interest and the
collection costs as well?
Continue this line of questioning going until you get to the Heart of
his problem – that may well lead you to a happy conclusion.
(End)
Jim Finucan personally developed collection techniques that made him
a "top gun" bill collector. Now these powerful techniques are
available in his book "Past Due! – A Debt Collections Manual. More
information is available at http://www.tiare.com/pastdue.htm
***************************
DEBT COLLECTING Q & A – Issue 9
By Jim Finucan
© Tiare Publications Group
Q) Dear Jim – I had a realtor client who was representing a new
development. I agreed to do a logo for them in order to get the
contract for marketing this new development. The realtor paid half
the invoice for the marketing materials and nothing more, despite
sending certified letters and threatening to withhold usage of the
logo. My lawyer says I have a case but his fees would be more than
the amount I'm owed. And even if I did win in small claims court,
would that judgment have any teeth? Would I be able to collect? Is it
even worth the hassle?
A) I'm a believer in making phone calls to the parties concerned –
even in personal visits when necessary. I'd call this person every
single day for an entire month. Ask him if his lack of action is
standard business procedure for them. As him: "Am I the first guy you
are trying to rip off or do you do this to everyone?" Ask him right
out whether you need to take legal action, and if so, what's their
defense going to be? Write down everything they say in case you need
it in court.
You might also look for a lawyer who won't charge as much as the one
you've talked to. Better yet, take your notes to the clerk of courts
office and start a suit yourself (it's not that hard – your local
library has books on this). Yes, the judgment will be vital in
collecting the debt. Sue the individuals personally, not the
business. Try to get a lien placed on their property or garnish their
wages. You're being taken advantage of. It's your money and you
deserve to be paid!
By the way make sure your future contracts include an 8% interest
charge on amounts unpaid after 60 days and an additional fee for any
costs you may incur in collecting the past due amount.
(End)
Jim Finucan personally developed collection techniques that made him
a "top gun" bill collector. Now these powerful techniques are
available in his book "Past Due! – A Debt Collections Manual. More information is available at http://www.tiare.com/pastdue.htm
**********************************
DEBT COLLECTING Q & A – Issue 10
By Jim Finucan
© Tiare Publications
Q) My most important customer has always been very good about paying invoices on time. But the accountant at that company always gives me an excuse (too busy, being processed now, etc.). We keep waiting but the checks don't arrive. I have called the boss but sometimes he is out of town and can't be reached. The accountant is the person responsible for seeing that invoices are paid so how can I get her to issue checks on time?
A) Late payment problems always originate at the top. The account is
only doing what she has been told to do: delay payment. You need to
begin your collection calls right at the top – with the president or
whoever is the head of the company. Be firm and clear: you need
payment in full by whatever day or date and anything less is
unacceptable. If the CEO acts as though he is unaware of the problem,
politely let him know what the situation is and that you plan to deal
directly with him – the decision maker. Bring him into the circle of
accountability and don't let yourself be put off or handed over to
someone else. Then call the accountant and tell her that you are in
direct communication with the head of the company in making the
overdue invoice a top priority.
Communication is the key. When he says "I have lots of work to do>"
You can say "so do I, and unfortunately that's why I'm calling. This
bill is part of the work you need to do. It's being neglected and I
want my money."
Make the call professional but not pleasant, so they won't want you
to call again. People avoid uncomfortable situations yet that's what
it takes to get through to them. Don't worry about putting stress on
the business relationship; chances are good that it will improve it
and their respect for you will increase.
(End)
Jim Finucan personally developed collection methods that made him
a "top gun" bill collector. Now these powerful techniques are
available in his book "Past Due! – A Debt Collections Manual" More information is available at http://www.tiare.com/pastdue.htm
**************************************
BILL COLLECTING Q & A – Issue 11
By Jim Finucan
© Tiare Publications Group
Jim:
When I work up the nerve to call someone about an overdue bill I
always seem to fold or lose my cool as soon as the other guy throws a reason at me for why the bill hasn't been paid. Do you have any
suggestions?
Patrick, NJ
Dear Patrick:
Offering the debtor a solution to the debt problem and overcoming his excuses is the goal of any collection call. The debtor has to be
persuaded that resolving the debt needs to be a lot higher on his
priority list.
The debtor is bound to give you an objection - a reason why the bill
hasn't been paid. And, you know, there really aren't that many
variations on this theme. I'd strongly recommend that you make a list
of them – and develop a good response for each that you use to can
come back to him. Write out and practice the responses on your own so you'll be able to field the next excuse. Any response you use should be phrased so that it puts the responsibility back on the debtor and, if possible, jack up the urgency in resolving the problem. Your response should end with a solution – a way the debtor could pay the bill. The conversation may go back and forth through five excuses and responses before you can resolve things before you're able to get the debtor to agree to pay the bill in full. At that point you should be able to suggest a way the debtor can take immediate action to end the debt.
Don't let yourself get trapped into a shouting match. You may believe the debtor is a low-life because he's trying to dodge you, but
telling him that isn't going to advance your cause, it'll do just the
opposite. Keep the goal of full payment in front of you.
Taking collections call from "hello" to "paid in full" is an art. It
must first be learned then improved upon and only then brought to
perfection. Don't give up on your efforts!
(End)
Jim Finucan is a 13-year veteran of the collections wars. His
book "Past Due – A Collections Manual" has helped thousands learn how to sail through the collections minefield and collect their past due accounts. More info at: http://www.tiare.com/pastdue.htm
*********************************************************
DEBT COLLECTING Q & A – Issue 12
By Jim Finucan
© Tiare Publications Group
Dear Jim:
An information technology firm owes me almost $40 thousand for
consultant work I did for them. Now they have changed the name of
their firm and had a lawyer send me a letter that claims their bank
has seized their assets. I know this is not true. They are still at
the same location and employ the same people. They just answer the
phone with a different name when I call. I don't know what to do. I
always thought they were a reputable firm.
Mark S., WI
Dear Mark:
This is an old tactic. The letter you got from their lawyer is
inferring that they've filed for bankruptcy when it hasn't. The bank
hasn't seized their assets. The attorney is lying. Check with their
bank and if the situation is as we suspect file a complaint with your
state bar association for the lawyer's unethical practices. Talk to
the attorney about how unethical it is to attempt to hide the assets
of his client so they can stick people. You might also want to imply
that the next time the company pulls a name change maybe it will be
the lawyer's turn not to get paid! Keep making calls to the company
CEO and controller and confront them about their ethics. Ask them
their opinion of the Enron scandal. Talk about filing a lawsuit. Look
for an attorney who will work for a percentage of the amount you
collect. These people are taking you for a bad and painful ride and
if I were you I wouldn't waste a second in going after them at full
steam.
(End)
Jim Finucan has been a top gun collections agent for over 13 year.
You can use his professional techniques and telephone tactics to
actually turn debtor excuses to work in your favor, to actually
double your debt collections. The answers are in "Past Due – A Bill
Collecting Manual." More information at:
http://www.tiare.com/pastdue.htm.
*********************************************************
DEBT COLLECTING Q & A – Issue 13
By Jim Finucan
© Tiare Publications Group
Q) I am in the collections business and I am determined to become as
good at it as you are. The company I work for trains us well but one
of the clients I do collections for just doesn't provide us with
anything to work with. What I mean is that they don't report
delinquents to credit reporting agencies, nor can we threaten to have
the company discontinue service. As result the delinquent account
doesn't take us seriously because they know there's nothing we can
do. Do you have any suggestions for getting around this problem?
A) It's bad policy for a company to expect anyone to achieve
collections and not provide you with any ammunition to achieve the
desired result. That makes it very tough on the collector.
One approach you can try is to work on the debtor's self image, his
pride. "Aren't you the type of person who pays her bills?" is a
question you should ask early in the phone call. "What do you think
of people who don't keep their promises?" Ask those questions quietly
and with genuine feeling and try to get the debtor to give you a
promise to pay the bill.
Close with "Now do I have your word that you will mail that
check?" "And your word is good, right?" "Well, I guess I'm going to
find out."
If the debtor can feel your sincerity and conviction the chances are
pretty good that he'll come through with a check. Keep at it, and
good luck in your effort to become the best!
(End)
Jim Finucan is a top gun bill collector whose collections
manual "Past Due" explains how you can to double your debt
collections almost overnight. More info is at:
http://www.tiare.com/pastdue.htm
********************************************
DEBT COLLECTING Q & A – Issue 14
By Jim Finucan
© Tiare Publications Group
Q) Jim – We're having real problems in collecting from a couple of
our larger accounts and are therefore considering turning the job
over to a collections agency. However, I'm wondering it the next step in this process should be to call in a lawyer. What do you think?
Robert Brunns,
Youngstown, OH
Dear Robert: There are attorneys specialize in collections and their
methods could work for you – simply because the letters they send to
debtors have the imprimatur of a law firm. But, on the average,
lawyers are not particularly skilled in the collections field.
A collections agency should be called on only as a last resort. It's
much cheaper if your firm can do its own collections, even if you run
into some particularly rough customers from time to time. An agency
is more likely to know how to go about getting an involuntary payment out of a debtor once a judgment has been issued. For instance, an agency has a skip tracing department that has contracts in such places as banks, phone companies and other information sources and can also use information from a credit file to affect a wage garnishment. Or they can find out from the bank how much money is in a checking or saving account because, once a judgment has been issued by the court, anything over $1,000 in such an account can simply be garnisheed.
If you decide to turn those extra difficult accounts over to an
agency, don't wait too long to do so. The older an account gets the
harder it is to collect. People move on, change employers or another
collector gets to the debtor first leaving you with the leftovers.
Steps should be taken about a delinquency within 90 days of it
reaching that stage.
(End)
Jim Finucan is top gun collections pro whose debt collecting
manual "Past Due" can help you double your debt collection dollars.
To order or for more information please visit:
http://www.tiare.com/pastdue.htm
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