Debt Collecting Q & A - Compassion in a Call

by Jim Finucan

Published on this site: May 3rd, 2006 - See more articles from this month

Question: Jim, is there ever a time or a situation that calls for compassion in a collections call?

Answer: Certainly. A well-done collections call is compassionate. It's honest; it's straightforward and helpful. The reason why we try to get information early on in the call is to determine if the debtor has the resources to pay the amount owed. What assets are available? If the individual has an income which enables him or her to pay you but chooses to spend that money somewhere else, we can help them by explaining what will happen as a result of their not paying the debt. It's not threatening, dictatorial or insensitive - it's real.

If the debtor does not have the necessary money, will you get paid? Of course not. So how can you ask him to take out a home equity loan if you don't know whether they own a home? If you don't get the information you need in the collection call you have no idea what to ask the debtor to do.

A collections call is should not be rude or condescending but it should be firm and authoritative. The fact that you are a creditor gives you a certain amount of jurisdiction in the debtor's life. Use it but don't abuse it. Keep the end goal in mind: a bill that has been paid in full and a repeat customer.

Jim Finucan - The right techniques can double - even triple - the amount of money coming in from your delinquent accounts. Fifteen-year collections pro Jim Finucan shows you how in his unique collections manual "Past Due." For more information visit: http://www.tiare.com/pastdue.htm