One way to think about bill collection is as a psychological game in which the bill collector tries to convince a debtor to pay an unpaid bill. There is no real force that a bill collector can legally use to get a bill paid unless the customer is using an ongoing service provided by the client. Only a lawyer can legally force a debt to be paid, and this can be expensive and time consuming.
There are a fairly small number of different sorts of debtors that are commonly encountered in the collection process. By getting a good understanding of these debtors, collectors can become far more efficient, debtors will be far less upset, and the whole process will proceed more smoothly.
Many people are honestly forgetful, and simply don't remember to pay their bills on time because they don't get timely reminders. In these cases, it is helpful to give the debtor tricks that can help them remember. For example, I know one collector who tells debtors to put the collection letter under a magnet on their refrigerator. That way they won't forget. If the debtor is honestly forgetful, this may be a useful suggestion, while a debtor who is trying to avoid paying will just be frustrated by the collector's sincerity.
Just because people forget, doesn't mean they don't have to pay you on time. Make it clear that if they have to forget something, it should not be the bills you collect. Explain that you charge interest and give them an example of how much it could cost them.
A lot of people simply buy more than they can afford to pay for, and end up without enough money to pay all of their bills. In this case, the key is to make sure that you get paid even if other creditors don't.
One way to do this is to find out what their bills and income are and help them rearrange the way they pay them so that your bill gets paid. If you do this right, they may actually thank you for helping them with their other bills.
Another option is for them to return merchandise to help reduce their debt. Many people don't think of this, and it can be quite helpful.
A lot of people consider going out on weekends more important than paying their bills. The collector has to explain that this bill will cost them a lot more than a few movies if they don't pay it soon.
Time payments are often a possibility, but it's important that these payments be large enough to pay off the debt in a reasonable amount of time. It is helpful to explain that you charge interest on the unpaid balance, and it costs them more to pay you slowly than quickly. Maybe their credit card company or some other creditor charges lower interest, and it is worth their while to pay you and owe the credit card company instead.
/ has a customizable minimum acceptable payment percentage, and always tries to increase the payment amount. The scripts are set up to help you negotiate payments up, but they are not forceful.
It is hard to be both sympathetic and demanding, but it is the most effective way we have found to deal with people who don't properly manage their money.
Some debtors simply lie to you. They will tell you anything to get you to give up. They will dispute claims repeatedly, agree to later payments than usual and then not pay them, and pay one payment out of three to keep you thinking they are going to pay regularly now. They will pay less than the payment amount, send in checks without a signature, tell you `The check's in the mail', and any number of other things. The best collectors take people at their word until they lie, and then don't trust them again until they earn that trust over a long period of time.
The best defense against the liar is to internally identify that they are a liar and continue the collection process unabated until they either pay the bill or you have to sue them. Remember that keeping all of your promises convinces the liar that their lies don't work. If a payment comes in late, send the late payment letter, add interest, reduce the amount due by the payment amount, and continue to pursue them. When they tell you a lie on the phone, catch them right away but do NOT use the term `liar'!!!.
Remember, bill collection is nothing personal! Debtors who try to lie their way out of debts usually do it because it worked in the past. Don't let it work against you.
Some debtors are experts at avoiding paying their debts. To get an idea of how they do this, read the section of this manual on avoiding bill collectors. Against the expert, it is usually best to use your own expert, but it costs you to do this. If the debt is worth it, or if you simply refuse to be taken advantage of as a matter of principle, it's time to go to the lawyer. A good law firm concentrating on collections will not only collect your bill, but if you do it right, they may be able to get their fees from the debtor instead of from you.
Sooner or later, if you talk to enough debtors on the phone, you will talk to someone who is greatly upset for one reason or another, and uses language inappropriate to a telephone call. It is vital to your mental well being to understand that this is not personal. It normally reflects conditions in the person's life completely unrelated to your call. A person without enough money to pay the bills, who is out of work, or who just lost their home is likely to be upset. In many cases, financial problems cause family problems and dramatically increase stress. Our best advice is to follow the phone scripts we provide for these situations, and keep a professional attitude. It is not your fault if the people you are collecting from are upset.
/ has some special facilities to deal with abusive callers who hang up on you or use foul language, and when you use the phone scripts, this data is automatically updated. This information is reflected in the display of user information, and should be used for qualitative decisions about how to handle a case.