COLLECTION TIPS
TO HELP PREVENT DELINQUENCY PROBLEMS
TO HELP PREVENT DELINQUENCY PROBLEMS
1. Obtain the following information
Name, Spouse's name Address, previous address Telephone numbers ( home, work, cell ) Social Security number and spouse's Employment and spouse's Credit references and account numbers Personal References Personal guarantee if a business
2. When feasible pre-screen prospective customers by obtaining a credit report.
3. Maintain a firm yet fair credit policy. This will:
Improve customer relationships Provide increased respect for your firm Minimizes overloading of credit granted
When to turn an account to Collection
There is a limit to the amount of time and effort that you should expend attempting to collect a past-due account. That limit has been reached when you have lost effective contact with your client. Further collection efforts on your part most likely will be unsuccessful if any of the following conditions apply:
Failure to respond to statements, letters or phone calls A lapse in payment arrangements for no valid reason Repeated complaints Denial of responsibility Your client moves without providing a forwarding address Indication of serious marital difficulties Repeated changes in address or occupation
Our Suggestion For You
Be wary of "Skimming Agencies" as low rates do not always save you money. Many agencies, mostly out of the area, will offer low rates to clients to entice their business. These agencies then skim off the "easy accounts", but do little to effectively address an appropriate credit/collection policy. In the long run, cheap fees will most likely cost you more.
DON'T DELAY - THE LONGER THE ACCOUNT REMAINS UNPAID, THE HARDER IT IS TO COLLECT!
Core Recovery
424 East Front Street / PO Box 389, Traverse City, MI 49685
Phone: (231) 947-7260 Fax: (231) 947-4320
424 East Front Street / PO Box 389, Traverse City, MI 49685
Phone: (231) 947-7260 Fax: (231) 947-4320