Debt Collection Techniques - Giving a Debtor the Low-down

DEBT COLLECTION TECHNIQUES –Giving the Debtor the Low-down

By Jim Finucan

© Tiare Publications



Just as a debtor has an obligation to pay his debt to you, you also

have an obligation to him. You need to make the debtor aware of the

possible consequences of letting a bill get to the point where it

has been or might be turned over to a collection agency. Those

consequences include having a black mark placed on their credit

report. That could affect the debtor's credit report for the next

seven years. Not only do loan companies look with disfavor on people

with bad credit ratings, anyone checking the credit of a job

applicant would not be feeling positive about hiring that person.

Don't forget to mention this job aspect to the debtor, especially if

you're dealing with a college student.



Other fallout of letting a debt get out of hand is the chance that

legal action could be taken and a judgment issued and then used to

garnish the debtor's wages or his bank account. Note that you should

not bring this possibility up with the debtor unless your office

reserves the right to take legal action.



Never say anything to the debtor that you do not mean. If the

debtor says:



"Don't call me at work anymore." (Remember this is a "cease.")



"Why not"



"Cruz I could lose my job!"



"Are you listening to me Harold? What are they going to say if

garnishment papers arrive with your name on them?"



Stay cool but include a touch of concern. Once you have informed the

debtor of what could happen you can talk about solutions. You can

become the "answer person" who is able to help the debtor out of his

financial troubles.



(End)



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