Here are the top ten debt collection techniques that have been perfected by expert commercial debt collectors. It’s important to know these techniques if you want to collect on a debt.
The secret debt collection technique is not using a demand letter. This is your first line of defense, but you should also be familiar with your complaint letter.
A letter asking the debtor to contact you for a written solution is not an efficient method. Most of the time, the debtor will respond to the letter and pay the debt in full. If you can wait for some time between the receipt of the demand letter and the receipt of the letter to respond, that is optimal.
Many companies have quality control measures in place, which they use to evaluate the quality of their operations. If you don’t comply with the quality control measures, you could find yourself cut off from valuable customers and your debt collection efforts may be negatively impacted.
For instance, settlement companies are required to inform the consumer about a certain timeframe that has been set for the resolution of the debt. If you fail to comply with this procedure, the debt may be returned to the company.
Companies that are delinquent on payments, have filed for bankruptcy or have had a receiver appointed are not eligible to serve the debt. If you contact these companies directly, it’s likely that the resolution of the debt will occur.
There are several things that make a commercial debt collection business a legitimate one. But it’s also true that most businesses have guidelines or practices that fall short of what’s necessary.
When you are communicating with a company that is not a reputable commercial debt collection agency, it is important to be polite and courteous but also ask several questions to see if there are any inconsistencies in the way they operate. Is the debt collector available to speak to you?
Does the collection agent to offer you a receipt for the debt? Do you receive any response to your correspondence from the collector?
Most debt collection laws allow a collection agent to begin the collection process at any time, without the consumer’s consent. However, you are allowed to be aware of the situation, and to request that they stop your collection if they are unable to establish a payment solution.
Here are the top ten debt collection tactics that you need to be familiar with if you are looking to get paid. Most of them are common sense, but they do work, even for large commercial clients.
The better prepared you are to handle a negotiation, the better off you will be, because the debt collector may have other sources to turn to. It’s never worth throwing away important evidence if you can avoid it, so having some knowledge about these techniques will protect you.