In many cases, credit and
collections professionals spend most of their energy combatting negative
behaviour. Missed payment deadlines,
avoidance of contact, NSF cheques,
broken promises, and rightly or wrongly disputed accounts. This means most of a collection professionals
behaviour and focus is on consequences, authority and ramficiations. In all that activity, sometimes the effort to
employ positive reinforcement is lost, but is very important.
Positive behaviour is
important to people. We’re all human
beings and for the most part we want to know that we are appreciated, we have
done the right thing, and that if we struggle to meet goals or deadlines or
make ends meet, someone has noticed.
In collections, a lot of
effort is put into establishing authority, and that often doesn’t involve
positive reinforcement, but afterwards – after the bill has been paid, or the
phone call has been returned, or information has been provided, there is ample
room to acknowledge a consumer’s effort.
Scenario #1 – A Partial
Payment Made
Bob has just remitted a
partial payment – it’s not the amount past due, but it’s certainly an effort,
and better than him not paying at all.
Rather than calling Bob and reprimanding him, this is an opportunity for
positive contact. A balance letter can
be sent out that acknowleges the payment, and a telephone call can be made, in
which the collector says ‘Bob, I see you made a payment by online bill payment
of $150 – I’m pleased to see that. There
appears to be a further $125.84 past due.
What is your plan to deal with the remaining amount?’
Scenario #2 – Documentation
Of Dispute Is Received
Susan’s company has been
fighting an invoice charge for over a month, and she has finally sent in a lengthly
letter outlining the issues with the service provided, and several supporting
documentation to show they needed to hire an outside company to repair faulty
equipment, or the like. A telephone call
or email to Susan can be very useful, espcially if she admits to partial
accountability – this can flow the conversation into at least a partial
payment. Regardless, it’s worthwhile to contact
the client and advise them their letter has been received, and what the process
is to investigate the dispute.
Scenario #3 – An Irate
Consumer Calms Down
Frank has a habit of flying
off the handle and yelling at collectors who call him for outstanding
accounts. A few days after an
altercation he calls and leaves a calmer voice mail for the collector. The collection agent should absolutely use
this opportunity to acknowledge and reward professional conduct and not provoke
Frank into further hystronics. An email to
Frank or a telephone call can go a long way, if the collector states ‘Frank, I
see that you gave me a call
yesterday. I’m wondering if you’ve
looked into the details of your account and have some information for me – how can
I work with you to make this matter go away?’
Scenario #4 – A Legal File
Offers To Settle
Laurie is a defendant in a
small claims court action – the claim has been filed with the court, and served
on her. Suddenly, she’s gone from
avoiding the call to reaching out to make arrangements. This is not the point to ‘hold her feet to
the fire’. After all, the point of
taking a court action is to receive payment.
If Laurie is offering reasonable payment arrangements, and is willing to
settle for a significant amount, or make payments on the balance and cover
legal costs spent thus far, why wouldn’t the paralegal or collector reach out
to Laurie and see what she has to say?
Of course, arrangements should be put in writing, and be firm before the
court action is halted, but there is absolutely no reason not to meet with
Laurie, and negotiate payment.
Conclusion
These are very simple
examples, and to many stating obvious common-sense processes, but I have seen
both creditors and collectors get caught up in a confrontational, emotional
attitude that throws all this reasonable thinking out the window. Thoughts like ‘I had to go to the trouble of
suing Laurie, why would I want to bother listening to anything she has to say
now? I’ll see her in court!’ are not
unheard of, because conflict became the focus somewhere along the way, not
resolution. Keep your eye on the end
goal and treat people decently in return for them reaching out and attemptipng
to work with you, and you will retain more customers, recover more accounts,
and have peace of mind with yourself and your co-workers.
If you are a fellow credit
and collections industry colleague and want to discuss collection techniques,
or are a client who wants to discuss our approach to collecting debt, which we
refer to as the APPRAISE process, feel free to give me a call.
Thanks kindly,
Blair DeMarco-Wettlaufer
KINGSTON Data and Credit
Cambridge, Ontario
226-946-1730
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