I am excited to share that I was interviewed by CNN Money this week and they have written a story on their website called “Confessions of former debt collectors -These people share their experiences in the collections industry — and why they left.”
They have profiled 10 former bill collectors – check it out and let me know your thoughts!
Many business owners I talk to and deal with have to be “convinced” to use a 3rd party collection agency, many just don’t see the benefit to their business. This has always baffled me.
In my opinion a relationship between a business and their collection agency should be a partnership in order for it to be successful, just like anything else.
Thoughts?
There seems to be a surge in the sudden use of collection agencies by travel agencies. I have been interviewed twice recently for stories about travelers dealing with bill collectors.
This story by CNN calling us “pesky”.
KansasCity.com gave the same types of tips and helpful advice to readers without saying anything negative about collectors or the industry.
KansasCity.com recently did a story on what summer travelers need to know when a collection agency calls them. Christopher Elliot, the travel troubleshooter shares some tips for travelers, which also apply to anyone who gets a call from a collection agency.
- You cannot provide documentation to support or prove the debt is valid.
- You cannot provide a proof of delivery of documentation to disprove a dispute.
- You want someone to sue a customer in small claims court for you. The original creditor must file.
- You want someone to call you every day with an update on your accounts.
One pro of using a collection agency is that you pay the agency on a commission basis, so if they don’t collect anything, you don’t pay anything. Another good thing about using an agency is that they are experienced in collecting debts all day, they know the laws, they have the resources and letters to send and they can find people who have mail returned or a phone disconnected, they can also report to the credit bureaus for you. (no added fee!)
A con might be that you lose a customer, but if you had to place them with an agency – is this a bad thing?
Be prepared for some customers to call you and be angry that you placed them with an agency. If this happens refer them back to the agency and let the agency know they contacted you.
You should think about hiring a collection agency much sooner than later.
In my experience business owners wait and wait for payments before placing an account with an agency and this is a big mistake. The sooner an account is placed with an agency the better your chance of getting paid.
Depending on your terms you should be watching all of your accounts, especially in this economy and if you aren’t doing any in house collection efforts you should place accounts as soon as they are past due, 5-10 days past your terms. If you do put some effort into trying to collect, but you are spending alot of time on an account that is not respnsive, place it with an agency. If your terms are “net 30″ and you have accounts at 45 days right now that are not responding to you, think about turning them over to an agency.
You hear it all the time, bill collectors are harrassing customers that don’t pay.
You see it all the time, websites and news programs that help people use the law to “sneak out” of paying a bill they legitimately owe.
What does this say about small and large businesses everywhere?
That they are the bad guy if they try to collect the money that is owed to them for services rendered or products shipped?
Why are they the bad guy?
Isn’t the “bad guy” the guy who is trying to get out of paying?
Thoughts?
How do you know what to look for when you decide to place accounts with a collection agency? It is important to do your homework and learn how to choose an honest and ethical agency. You want to be sure to select a qualified service.
Choosing a professional collection service to manage delinquent accounts and other related tasks is a wise decision. The agency you choose should represent your organization in a responsible and professional manner, and provide a satisfactory rate of recovery while maintaining your public image. This decision involves more than just giving your business to the lowest bidder – it requires careful consideration.
Something to remember: You get what you pay for.
As the economy worsens, more and more people look at their bills each month and have to decide which ones to pay and what can wait.
When you are making that decision make sure you are aware of how not paying your utility bills can affect you.
In my opinion, you should always pay your rent or mortgage first, so you have a place to stay. Utilities would be second and food third.
What are your priorities?
