Monday, October 14, 2013

Effective And Proper Debt Collection Strategies


by Megan Landry


Debt is always an issue for different individuals and even to small and medium enterprises especially at these times of crisis. When someone owes you money, you always expect that the payment will be will be paid on the right amount and on the right time. However, if you are not familiar with any debt collection strategies, you can be sure to fail in getting your money back.

Studies show that debt management is a crucial factor that is likely to be neglected and it usually causes a problem among businessmen. A survey indicated that sixty three percent of the market is made up of new enterprises that just opened within a year. They represent a significant number in the market and most of them have more difficulties in their operation compared to others.

The law has been carried out to make sure that the rights of the consumers are not violated especially by debt collectors. More importantly, there is restrictions in observing such laws otherwise, there are fines and penalties that one must face. That is why companies and individuals must be knowledgeable about this important details.

In the case of creditors, there are legal obligations that also need to be followed when dealing with debtors. A company is required to obtain a formal manner of collecting payments that is within due process of the law. However, there are instances that challenge the creditors whenever a customer cannot comply with the payment agreement.

The standard procedure for most companies would be first, to deliver monthly account reports to their respective customers. This is usually done many months before the due date of the payment so that clients can have more time to prepare. In this way, they can have better chances of meeting the scheduled deadline without any hassles.

After this phase, it is now time to make phone calls to inform them about the scheduled date of the payment. When making transactions through calls, a professional and careful approach should always be observed. This prevents the debtor of having misconceptions of the way how most collectors handle them in a very uneasy way.

In cases where the customer does not follow on the agreements made, then a first demand notice letter can be sent. If after fourteen days there is still no action made by the person, then you can proceed on sending a second demand notice. If for the third or more time the same thing keeps happening, then that is the right time to seek for legal action.

Another key factor that the creditor should consider also is that he should always identify the problem before anything else. It is always essential to assess the status of the customer so that necessary adjustments and considerations can be made. It is the job of the creditor to help address the issues that the customer might be facing.

Debt creditors have been stigmatized of fear and aggression in society that is why clients do not really deal with them also in a proper way. If they know how to treat everyone with fairness and justice, then they are sure to accomplish their responsibilities. Having these remarkable values and the proper usage of debt collection strategies can surely help them along the way.




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