Debt Collection Strategies:
It's All In How You Do It

by Brianna
(Lafayette, LA)

Collecting debt is usually a hard and time consuming process. I have worked in collections for several years for a local finance company. I have done a lot of field work involving going directly to a clients home and collecting debts.

My boss is not one to mince words or play around. She has a "take no prisoners" attitude that has earned her a not too nice reputation. The company has always done phone collecting, but that often produces little results. She created a position that put me out in the field on a daily basis collecting debt that she normally would have charged off.

When you are in the finance business charging off is a bad thing, especially when those files get sent to another office and someone else is lining their pockets with your bonus!

I like to use my boss's reputation as a "take no prisoners" lady to my advantage. It has worked for me time and time again. Most clients know by the time they see me that they are about to go to court. I offer them a way to bypass my boss and set up payment arrangements by letting them know if they don't deal with me they will deal with her and the court system.

Most people do not like the idea of losing their stuff. Some people don't care. I have done many repossessions. It's the clients that are working and stand to lose 25% of their paycheck in a garnishment that really respond.

I like that I never have to threaten what I am going to do. I simply very calmly explain what my boss has in mind and as I said most of them are more likely to respond. The ones who feel they have nothing to lose and refuse to cooperate are sued.

In other words if you are going to threaten someone you must make good on your threat or no one will ever take you seriously. Most people would rather deal with someone they can negotiate with in peace instead of someone who they can't tolerate.

I feel like there should always be a good and a bad person in a collection relationship and that you should always make good on any threats you make on behalf of your company. By the way did you know that you can take vehicles from debtors even if you haven't got them listed as collateral on your loan once you have a judgment on a client? It is an effective way of making a point! Just a few thoughts on what you can do to increase your collections even in these tough times.