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Debt CollectionIn today’s economic environment it is vital to have an effective debt collection process to ensure all your customer’s pay within the agreed credit terms and to keep bad debts to a minimum.  It is important to get the balance right between the level of credit provided and the cost of providing this credit.  The following are a helpful list in aiding to maximise the effectiveness of your debt collection process:

 

What A Debt Collector Does

A debt collector’s job is to collect money for the people you owe. In other words, debt collectors provide debt collection services for companies trying to collect on past-due debts. There are also third-party collectors who buy old debts for pennies on the dollar.

You may get a call from a debt collector if you are late on your credit card payment, if you have not paid your mortgage or car payment, or if you have other loans or bills that are in default.

Debt collectors can be aggressive and even hostile in attempting to collect money you owe. They may even make threats to scare you into paying them before you pay your other obligations. Do not let them bully you.

Instead, know your rights. With the information below, you will learn how to deal with debt collectors and how to begin taking charge of past-due bills on your own terms, once and for all!

Your Rights As A Debtor

 

What You Should Say To Debt Collectors

 

Dealing With Debt Collectors Who Are Too Pushy

If you have a debt collector who is getting out of control and harassing you, let them know that you are recording their calls, and that you do not want to be contacted by telephone. Tell them to send you written correspondence only. If they continue, let them know you can and will report them.

If a debt collector is calling about an old debt, you need to take charge of the conversation. First, get proof that you owe the debt. Second, ask for that proof in writing. Do not make any payments before first being sure the debt is yours, and second making sure the debt has not passed the statute of limitations.

 

Debt collection can be tricky. If you are a creditor, you will find the following three sample demand letters very helpful. These letters are intended to be a starting point and should be tailored to fit your particular circumstance. Keep in mind that some claims must be brought within a specified period of time. You should seek the advice of an attorney to determine if you have a valid claim or if you are unable to collect the debt yourself.

INITIAL COLLECTION LETTER

Dear _____:

This letter is a friendly reminder that payment on your account in the amount of €________ on your account was due on ________. If you have already sent us your payment, kindly disregard this letter. If not, please send us your payment promptly.

Yours truly,

FOLLOW UP COLLECTION LETTER

Dear _____:

This is our second reminder that payment on your account in the amount of €________ on your account was due on ________. We value your business and hope to keep you as a customer. However, we do require payment according to the terms of our invoices. Please send us your payment promptly.

Yours truly,

FINAL DEMAND COLLECTION LETTER

Dear _____:

This is our final reminder that payment on your account in the amount of €________ on your account was due on ________. If we do not receive payment in full by _____, we will submit your account for collection.

Yours truly,

 

Call The Synergy Group to get a free overview of your situation and we will advise you on a way forward.
Then, if you wish, we will hold your hand to make sure it works.

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