February 7th, 2010
With social media taking over as the new way to market, network and grow your business, the credit and debt collection industry is no exception. Michelle Dunn, the founder of the American Credit and Collections Association has created a social networking website for anyone who wants to learn more about collecting money, credit management and networking with others within the industry.
Membership is free and members can create a profile, upload videos, start a blog, join groups, ask questions and much more. Join today to keep up to date on what is happening in the industry, meet new people, learn about industry events and expand your network.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting money, available online and in bookstores.
Tags: social media, social network, social websites
Posted in About Credit & Collections Association, About Michelle Dunn, Marketing, Networking, Online Collection Techniques, Professional Associations, Social Networks | No Comments »
February 6th, 2010
The Industry’s Only Publication for Frontline Collectors Doesn’t Want the Economy to Thwart Training!
Skills World announced today that it will be giving away 250 complimentary electronic subscriptions to first-time readers of its popular bimonthly publication collector mentor.
“The credit and collections industry has brought us all many challenges this past year,’” said Gary Jensen, founder and chief learning officer at Skills World and collector mentor editor. “As companies continue to cut expenses, especially in the area of training, we want to do our part to ensure that companies can still provide frontline collectors with access to the information they need to be successful in this turbulent economy.”
As the premier skill-development publication for frontline credit and collections professionals, collector mentor delivers insightful and powerful articles about collections, credit, skiptracing, industry regulations, and soft business skills.
“Collector mentor offers inspirational, motivational, and educational articles designed to help staff become more profitable collectors, more productive employees, and better stewards of the industry,” said Jensen. “This publication isn’t for the C-suite executive; it’s for the individual responsible for making the calls and talking with customers.”
One-year subscriptions will be provided at a company level, and subscribers will have the right to internally reproduce and redistribute issues at no cost to ensure that each staff member has a personal copy. This offer lasts
until all 250 subscriptions are awarded, or until March 1, 2010, whichever comes first. For more information about receiving a complimentary subscription, visit their website.
Tags: bill collector, subscription, trade publication
Posted in Being a Great Collector, Collection Tools, Economic Crisis, Education, Industry Trade Publications, Recession, The Life of a Bill Collector, Training | No Comments »
January 30th, 2010
Phoenix, AZ (January 22, 2010) CCS-Adplus, LLC, an accounts receivable and direct marketing information solutions company announces Sourcelure, a new division that brings a unique skip trace outsourcing model and vendor agnostic approach to the debt collection industry.
Evaluating, implementing and managing vendors’ information technology services take a cross functional effort and ongoing commitment in resources. The current market environment has companies struggling to find the time and resources to test and implement new tools and treatment strategies while their focus is on client and other strategic initiatives.
“This isn’t a new problem but one that is exaggerated by the economic downturn and additional vendor consolidation that has made it difficult to distinguish the value one data company brings over another. Furthermore, it is difficult to objectively assess the competing claims each new vendor makes regarding the ‘uniqueness’ of their data,” said Will Turner, Sourcelure’s Director of Consulting.
Tags: skip trace
Posted in Heard on the Street..., Skip Tracing | No Comments »
January 28th, 2010
Collecting money is a job most people shy away from, no one likes a confrontation. For some being asked to pay a bill is insulting and they take offense, resulting in them becoming defensive when you bring up the subject. How can you collect the money they owe you without blowing up yourself?
If you can remember or remind yourself before you make a collection call that this person is embarrassed, stressed and will become defensive when you ask them to pay, you can be ahead of the game. With this in mind have a plan ready before you pick up the phone. When the customers is explaining to you why they have not or cannot pay, stay quiet and listen. No matter how much you want to interrupt, give them a chance to explain. Sometimes they will calm down just because you listened to them and you were calm. When they are done, address the problem, and offer a solution or if you can a couple of solutions.
This does a couple of things. It lets the customer know you care enough to listen to them, and you are giving them a couple of options on ways to solve the problem. When a customer gets to choose a way that works best for them, even if it is to re-pay a debt, the chances of them sticking with it are much higher than if you call and demand payment in full right now.
Offering a solution, offering a couple of options and remaining calm are what you have to remember to collect from a past due customer that might be yelling and swearing at you. If you can do those things you have a much better chance of getting paid and you won’t need high blood pressure medication.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting moneyмаси, available at http://www.michelledunn.com/shop/catalog.php
http://www.Credit-and-Collections.com
Tags: bill collector, Collection Calls, difficult people
Posted in Being a Great Collector, Collection Calls, Economic Crisis, FAQ's, Getting Paid - Michelle Dunn - Business Finance Columni, Recession | No Comments »
January 27th, 2010
Most people have every intention of making good on their auto payments and only end up defaulting because of common circumstances such as a job loss and unemployment is not available to them or it is not enough money for them to be able to live on and keep up their car payments.
For some it is having to pay for major repairs, if they were struggling even a little bit to make their car payments if something goes wrong they suddenly cannot make the payment and pay for the repairs.
In some instances there are uninsured accidents and some people decide to make a car payment or an insurance payment so insurance may lapse. Most of the people who owe on a vehicle and default seem to get into more debt, they will try to pay off their car loan because they know they can be pursued legally and they may not want to lose the vehicle.
In some instances the customer or debtor may file bankruptcy or stop all communication and even hide the vehicle to avoid repossession.
Does this sound familiar to you? Fortunately there are things you can do to help prevent and get control of customers who have defaulted on their car payments. Before authorizing a loan, be sure to check all references, landlords, employers, personal references and banks. When you call their employer be sure to verify the employment dates they have given you. In some cases people have exaggerated the amount of time they have worked somewhere to get a better chance at a loan.
If you have a customer that has poor references or not enough credit history you can either deny them the loan, or ask for a co-signer. When you get a co-signer treat them as though they are applying for this loan by themselves, be vigilant about checking all of their references and asking questions. If you are not sure, do not approve the loan to make the sale.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting money, available at http://www.michelledunn.com/shop/catalog.php
http://www.Credit-and-Collections.com
Tags: auto payment, car loan, default
Posted in Auto Collections, Checking credit, FAQ's, Getting Paid - Michelle Dunn - Business Finance Columni, Reposession | No Comments »
January 26th, 2010
Calling past due customers is not fun, you don’t want to do it and they don’t want to hear from you.
When you are making collection calls you MUST do the following in order to get paid:
- Manage the emotional side of the call
- Prepare your pre-call plan
- Make your opening statement
- Ask questions with precision
- Make the transition to the payment arrangement
- Handle objections
- Close the call – repeat all actions that will be taken
You cannot be to clear and follow up is the key to your success.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting money, available at http://www.michelledunn.com/shop/catalog.php
http://www.Credit-and-Collections.com
Tags: collection call, debt collection, Excuses
Posted in Ask Michelle, FAQ's, Telephone Collection Tactics | No Comments »
January 25th, 2010
Michelle,
What would you say are the biggest downfalls for small collection agencies? What do most agencies lack for them to prosper? – Thank you, Teresa
Teresa,
I would say the biggest downfall for any collection agency is not being educated or trained or the collectors not being educated or trained in the art of debt collection, mediation, negotiation and debt collection laws. Another big downfall is collectors or agency owners who don’t have experience or not being prepared to deal with everything a bill collector has to deal with. Preparation, training, education and follow up are key.
A big downfall for agency owners is not having a business or marketing plan. Once an agency is up and running you need some direction to stay on track along with everything else that is required of you. You need to follow your marketing plan in order to get and keep clients and to grow your agency.
Many collection agencies flounder because of a lack of organizational skills, communication skills, and collection skills. It can also be due to a lack of marketing skills or customer service to keep and get new clients.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting money, available at http://www.michelledunn.com/shop/catalog.php
http://www.Credit-and-Collections.com
Tags: Education, Laws, Marketing, starting a collection agency, Training
Posted in Ask Michelle, Customer Service, Education, Marketing, Starting a Collection Agency, Training, Working at a Collection Agency | No Comments »
January 22nd, 2010
Hello Michelle,
I have been in credit & collections for 17 years in retail and manufacturing environments and am currently out of work. I am about to start a collection agency and would not need to borrow any money since I have purchased a fax machine and have a spare bedroom set up as an office.
I am calling the state house this week to obtain a Tax ID# and register my business name. Can you point me in the right direction? – Deb
Dear Deb,
You said you do not need to borrow money since you have an office set up and a new fax machine. Please keep in mind that there are many more expenses to starting any business and especially a debt collection agency. Make sure you find out about zoning in your area for starting a business from home, you can do this by going to your town meeting or setting up a meeting with the zoning board at your town hall. Also check into licensing and bonding depending on what state you are in and what states you will be collecting in.
Some other needed skills you will need:
- organization
- follow up
- negotiation
- mediation
Make sure you have a written marketing plan and start to work on that immediately, before you open your agency. Some agencies obtain licensing in the state they are located in and then as they can afford it they expand to other states that require licensing. Becoming licensed and bonded is very expensive but you can do it yourself to save a little bit of money.
Some other equipment you will need:
- Computers
- Printers
- Mailing facility, scale, postage, bins or a letter service
- Marketing materials, flyers, business cards, letterhead, envelopes etc.
- Software
- Phone and answering services
- and much more.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting money, available at http://www.michelledunn.com/shop/catalog.php
http://www.Credit-and-Collections.com
Tags: starting a collection agency
Posted in Ask Michelle, Starting a Collection Agency | No Comments »
January 21st, 2010
Dear Michelle,
I am starting my own collection agency as a sole proprietor right now and am interested in specializing in collecting on accounts for the banking industry. I have been a collector for 10 years but it is time for me to start working for myself, please tell me how I can get banks to place accounts with my new agency. – Sincerely, Trudy
Dear Trudy,
Many agencies specialize in collecting on a specific type of debt that they have the most experience in. This is because they have dealt with these types of accounts before and know how to work them and effectively collect on them. When you specialize in a certain type of account you can focus on getting clients, such as banks, that would rather place accounts with an agency that specializes in their type of debt rather than collecting on anything and everything.
Once you have your business plan and marketing plan, use your mission statement and purpose to help you create marketing tag-lines and materials you can then use to present to banks as a way to gain them as a client.
Michelle Dunn, author of Starting a Collection Agency, how to make money collecting money, available at http://www.michelledunn.com/shop/catalog.php
http://www.Credit-and-Collections.com
Tags: bank collections, collection agency, starting a collection agency
Posted in Ask Michelle, Starting a Collection Agency | No Comments »