Debt collectors are very much needed, especially in the day and age where credit cards and loans are handed out to almost anyone resulting in more and more people are failing to pay on those debts. While debt collectors are in high demand, it doesn’t mean it is an easy job. The job can be trying and frustrating especially if you are not certain about how to work the system. Being knowledgeable about all of your options as a debt collector as well as the best ways of dealing with debtors is in your best interest in your field.
When it comes to collecting debts, here is what you should do:
1. Make Correct Contact:
To ensure the debt is eventually going to be paid off you need to make sure you contact the right person. In a business, your call may be directed to someone else who is supposedly going to take care of the problem. Debtors sometimes use this tactic to divert the pressure off them.
2. Be Professional:
As much as debtors can be hard to deal with, you need to focus on keeping your cool and maintaining a professional, business repute. No one likes to be harassed. Debtors sometimes feel like they are being badgered and an unprofessional call can make them even more determined to ignore their debts.
3. Ask Questions:
The more questions you ask, the more they are going to talk. Ask different questions from different angles and see what kind of answers slip out.
4. Know the Debtors rights:
…and try not to step over that line. When you try to go around the rights of the debtor you may in turn lose your credibility.
5. Threaten to Report to Credit Bureau:
If letters and phone calls from the debt collection agency are not doing the trick, it might be time to inform the debtor of just how serious a matter this really is. Reporting the unpaid debt to major credit associations can prevent the debtor from having a good credit score for the next 7 years.
6. Be Firm:
Debtors may try to shove you onto a merry-go-round but you are going to need to stay firm and determined when aiming for direct recovery.
7. Be Informative:
A barrage of phone calls and letters can frustrate your debtor to no end; on the other hand when you portray to them how much information you know, and the routes you are willing to take to get the debt paid, it is going to help your debtor understand just how serious it is.
8. Threaten Litigation:
As a last straw, you’re going to have to threaten a going to court or a law suit. This is usually the last step in the arduous duty of debt collection. As much as a person or business may insist they cannot pay the debt, they cannot get around the legal ramifications forever. The threat of a law suit is usually enough to recover the debt. If the threat does not work, an actual law suit is next on the list.