Believe it or not the success or failure of your attempt to
collect a debt is usually decided right at the beginning of your
phone call - with the very first thing you say after the other
party says hello. Knowing exactly what you’re going to say, and
handling the call in an organized, professional manner is the
foundation upon which collections are made or lost. There are
four parts to a professionally executed collections call:
Part One: The Open How you identify yourself, your company and
the problem. And how you place that problem before the debtor.
Don’t ask him when he’s going to get around to paying you or why
he’s putting you off. Otherwise you’ve made your move too soon
and you’ll be at a disadvantage right off the bat. Instead, put
the debtor in the position of having to explain himself. Say
something like “What are your intentions toward this bill?”
Part Two: The Facts - If the debtor doesn’t agree to pay the
bill early on, move into the next part of the call: asking
questions about his situation. It’s important to make a smooth
transition here because you don’t want to alarm the debtor. Say
something like “Let me just fill out an extension form for you.”
Then you can start asking about his job, whether his wife is
employed, any outstanding loans he may have, credit cards, etc.
Part Three: The Dun - Once your questioning has given you the
information you need you can show the debtor a way in which he
or she can pay the debt. You know, for instance, that he can
afford to put it on his MasterCard, or that she could qualify
for a bank loan. Now you’re in position to make your demand for
payment (the dun).
Part Four: The Close - Whether or not the debtor has agreed to
pay there is also a specific way you should end the call. And I
don’t mean, “Gee, thanks, have a nice day!” or “You’ve got your
nerve!” Use an open-ended question designed to put the debtor on
the spot; something like “Do I have your word on that?” If he
has refused to pay or continues to dodge and delay remind him of
how serious the situation is; make it clear that the problem
must still be resolved. Be professional; don’t insult him. Save
any threats of legal action until you’ve contacted the debtor
several times without success and see no other option. Never
threaten legal action unless you fully intend to follow through,
otherwise you can be accused of harassment.
Collection calls are a necessity in bill collecting. Making the
effort to learn and use as many techniques as you can will bring
results and increase t he bank balance of your business.
About the author:
Jim Finucan has more than 12 years as a “top gun” in the
collections business. Visit http://www.tiare.com/pastdue.htm for
more information on bill collecting and his debt collections
manual - Past Due!
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