Commercial Collections Blog

Making Effective Collection Calls

These 10 steps will assist in making successful Debt-Collection calls:PREPARE: Before making the call, know the history of the account, credit record, the promises kept/broken. Have all records ready for reference during the conversation.ATTITUDE:  Use a respectful, professional business approach.  You have a right to receive payment — you; have a contract, delivered the goods, and money is owed to you.  Don’t yell, raise your voice, swear or threaten.  Outsourcing to a Collections Agency or taking  legal action are your only recourse options if the debtor refuses to pay.

CONTACT:  Ensure you speak with the person who pays the bill. If you can’t get through after several calls, tell the secretary that you know your calls are being screened.  Indicate the purpose of your call and if necessary give deadlines.

Ethics of Debt Collection

Effective Collection Calls

CONTROL: Control the conversation. Keep it focused on the debt and repayment schedule. Don’t enter into conversation with their personal history or excuses — remember, all that dialog has one purpose, to avoid paying the bill. The purpose of your call is to collect money, or get a commitment — not to become buddies or win arguments.

FLEXIBLE: Be ready to adjust to the situation regarding your customer and adapt. Be prepared to accept a reasonable payment schedule.

NOTES: Keep detailed, accurate notes of every contact. Notes recording the details of the contacts will help you in subsequent contacts, and may be valuable in litigation. Good notes will help in further credit decisions, or where skip tracing is needed.

PRODUCTIVE: Keep contact brief and to the point. View your efforts on a ratio of time expended to results achieved. Long conversations probably mean the customer is stalling you, or working toward trapping you in the “buddy syndrome”.

PRECISE: Every contact should result in a commitment to pay, a specific amount, and a specific date.

TIME FRAME: The longer an account is held, the less likely it will be recovered. If payment is not arranged within 90 days, place the claim with a collection agency, or start legal proceedings.

COLLECTION AGENCY PLACEMENT: Use only an agency that is a member of the American Collectors Association OR the Commercial Law League of America. This will ensure you’re dealing with ethical professionals who are fully bonded to guarantee you receive your portion of the money they collected.

Debt Collection News

  • Infusystem Hldgs, Inc. (INFU) COO to Retire, Hires CFO

    April 25, 2018
    The first, Terry Armstrong, brings over 40 years of experience in revenue cycle management, healthcare receivables and collection, information technology. Mr. Armstrong is currently President of State Collection Services, Inc. (“SCS”), a healthcare revenue cycle company which provides accounts ...
  • The Washington Insights Conference is Just Around the Corner: Here's Who Will Be There

    April 25, 2018
    Mick Mulvaney, the CFPB's Acting Director, will keynote the conference while Thomas Pahl, recently appointed Policy Director, Markets and Regulations at the bureau, will provide valuable input to the accounts receivable management industry during the conference, May 21-23 at The Madison ...
  • Sterling Bancorp announces record results for the first quarter of 2018 with earnings per share ...

    April 24, 2018
    In addition, fee income generated on payroll finance loans increased $1.2 million (which represents the majority of the increase in accounts receivable management / factoring commissions and other related fees) and other loan fees including letters of credit and loan swaps increased $433 thousand ...
  • Customer Woes Cause Healthcare Services Group's First-Quarter Profits to Evaporate

    April 24, 2018
    $25 million worth of accounts receivable from Genesis HealthCare is being converted into notes receivable. Management believes this move will strengthen its customer payment obligations. The dividend was raised to $0.19250 per share. This marks the 59th quarter in a row of dividend bumps.
  • Accountant, Revenue and Receivables

    April 24, 2018
    LendingTree was founded in 1996 by CEO Doug Lebda to help people comparison shop and get a great deal on the single biggest transaction of their lives: their mortgage. Since then, we've facilitated over 65 million loan requests, while becoming a household name (our brand recognition rivals Bank ...
  • Kaulkin Ginsberg Announced its Next KG Prime Collaboration

    April 24, 2018
    Ontario Systems offers a full portfolio of software, services and business process expertise, including product brands like Artiva RM™, Artiva HCx™, Contact Savvy®, and RevQ®. Ontario Systems customers include 5 of the 15 largest hospital networks who actively manage over $40 billion in receivables ...
  • VersaPay Adds Regency Centers a Leading US REIT to Growing Customer List

    April 24, 2018
    provider of cloud-based invoice-to-cash solutions including electronic. invoice presentment and payment, automated accounts receivable, cash. application and collections management, is pleased to announce that it. has added Regency Centers as the latest organization to implement. ARCT.