The Key to Successful Debt Collections

I remember a time when I was doing debt collection in the early 80's for one particular company. Not only did I do debt collection but I also made loans to consolidate date, these were home equity loans and 2nd mortgages.

Well one particular day we were having a meeting. It was a meeting for all the managers of the branches, myself included. This meeting was a hype you up, rah rah type of meeting to get everyone motivated and excited about putting more loans on the books and building our loan portfolio or loan base.

At this meeting one of the higher ups decided to address the issue of collections and the fact past due accounts were unusually high and we needed a plan of action to get them under control. And he started his speech out this way:

"Well as you know our collections are pretty getting out of control, but collecting past due accounts is really simple.

"Never mind that the cat ate the last check in the check book, never mind that the house note is behind, never mind that there's no food in the house, nerver mind that the car note is behind, never mind that the utilities are behind, never mind that the roof just caved in, "Just ask for the Money", it's simple as that. Just ask for the money.

I thought wow how uncaring. No sympathy for a customer who's struggling to make payments on his debt, survive and feed his family.

Today's consumers are much more savvy , much more educated, and more intelligent that they have been in the past. They pretty much know what debt collectors can and cannot do. The squeeky wheel no longer gets the grease. It's the kind and understanding, and agreeable wheel or person that gets the grease and the money from the delinquent customer.

To collect on past due debts today here are some tips to be successful: