Receivable/Accounts - Information for Credit and Collection Issues

Thursday, April 26, 2012

Collection Tip - Information is Power



When presenting yourself to a debtor, be sure to display knowledge of their situation – because knowledge indicates authority or power. 

If you have access to the consumer’s social insurance number, date of birth, credit history, details of why they are being billed, previous commitments, or any other information, you should find an opportunity early in the call to display you have knowledge of the consumer.

By sharing this information, you infer authority – by describing items on the consumer’s credit bureau, you display your ability to access and alter a credit rating.  By sharing knowledge of the consumer’s place of work, their salary, or their time in the position you reinforce the fact that you can impact their wages with a garnishment on a judgment.

Try saying:

“Well Susan, I see here that your credit rating is almost untarnished – you have an American Express card with an R1 rating, your bureau shows you’ve lived at 123 Madison Avenue for over three years, and while you have $35,000 in available credit, you are only using $6,000.  It would really be unfortunate if we had to mar your credit file with this outstanding account for $800.  Shall we address this with payment, or report the matter to the credit bureau for the next six years?

If you are a fellow credit and collections industry colleague, and want to discuss collection techniques, or are a client who want to discuss our approach to collecting debt, which we refer to as the APPRAISE process, feel free to give us a call.

Blair Wettlaufer
Kingston Data and Credit
Cambridge, Ontario
1-888-908-3151

2 comments:

  1. Blair,
    Would that be the script for the FIRST call on an outstanding debt?
    Jennifer

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  2. Jennifer -- that is a simplified response to someone claiming they don't have the ability to pay. However, for third party collections, there are elements there that would be in the first call. Specifically, bringing the consequences to attention of the debtor before asking for a decision, and so on.

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