Debt Collection Techniques

Here are some sound debt collection techniques that can be followed by businesses to mitigate the bad debt crisis:

Sending a pre-collection letter.
Hiring a collection agency.
Doing it yourself.

Sending A Pre-Collection Letter

Most businesses don't want to "play the bad cop" with their clients, so they approach a collection agency, which for a nominal fee sends a notice to the defaulter asking him or her to pay up.

Remember, a notice from a collection agency is much more effective than the notice from your company itself. It tells the defaulting customer that you have now hired a professional help to collect the dues and, thus, it increases chances of customer paying up the debt faster. The 'fear factor' of credit rating damage is associated with collection agencies.

Hiring a Collection Agency

A collection agency under the Fair Debt Collection Practices Act is one that recovers debt on behalf of others. It employs various methods to recover dues from errant customers:

Collection calls are a necessity in debt recovery. Handling the collection call in a calm and professional manner can make the difference upon which collections are made or lost.

Skip tracing is a detection method adopted to find a debtor who has absconded either intentionally or unintentionally. Forwarding occurs when a collection agency forwards a debtor's account to another collection agency, possibly because it does not have the authority to conduct business where it is currently located.

Flow Forwarding is a novel concept in which a collection agency contracts with a business to purchase all its bad debts on a periodical basis. Doing It Yourself

As mentioned earlier, most businesses suffer from bad debts because of a lack of a clear debt management policy. Most organizations would minimize their debt management if they had clearly defined credit policies. Moreover, a clear understanding of the law needs to be had before a business drags its clients to court. This is the tedious bit and therefore businesses need to be very sure with their preparation.

Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.

In The News:

Your phone can do a lot more than you realize, but no one points out the countless hidden settings and features when you buy it.

It's easy to get sucked in and find it difficult to put the phone down

Cameras can exaggerate certain features and give you a different appearance than what you see in the mirror. That's why you need to be strategic when you pose.

It's a bit stomach-turning when you think about the germs, viruses, grime, and other crud covering our devices.

In a letter to CBP earlier this week, two U.S. senators called for authorities to allow Americans to opt out of facial recognition at airports.

In the world of tech, there is a slew of new features and hidden tricks hiding in your everyday devices.

It’s best to back up your photos, so they're safe and sound

Here are a few ways to boost your security, increase your productivity, and tidy up your digital life in 2022.

You won't get any official notice if someone blocks your calls — but you can make an educated guess by looking for these signs.

When it comes to finding your phone, there are better ways than shouting for someone else in the house to call you, and that's not always possible.

Social media company Grabien was banned from Twitter on Friday after posting a quote from a US representative

When it comes to the rest of your tech, it’s never too late to adjust your settings and get back just a little privacy.

We all know that prickling feeling when we see an ad online or on our phone for something we just talked about with a friend.

YouTube TV has restored access to Disney, ESPN, and other networks following an outage last week. The outage stemmed from contractual disputes that resulted in an interruption of service.

If your computer is unresponsive, slow down and follow these steps.

Before you visit the Google Play or Apple App Store again, there are a few things to keep in mind to keep nosey and dangerous downloads off your phone.

Security pros say one of the worst computer vulnerabilities they've ever seen has been exploited by state-backed Chinese and Iranian hackers, rogue cryptocurrency miners, and others.

It's nice to know if your text message went through and the person read it.

Security experts around the world raced Friday to patch one of the worst computer vulnerabilities discovered in years.

There are many things you shouldn’t do online. Some are just plain dangerous.

Debt Collection Techniques

Small Business Small Business