6 Tips to Help You Optimize Your Debt Collection Strategy!

6 Tips to Help You Optimize Your Debt Collection Strategy!

If you plan to handle your own debt collection, you’re not alone! Most businesses start the debt collection process in-house. To help you optimize your debt collection strategy, we’ve put together this list of 6 tips.

Follow-up on Accounts the Day After They Become Past Due

The day an account is past due, make a courtesy phone call to the client. Life gets busy for everyone. It could be that the client forgot their payment was due. When you follow-up on accounts the day after they become due, you improve the likelihood that you’ll get paid and avoid the debt collection process. This is important because the older a debt is, the harder it is to collect on it.

Ensure That You Have Current Contact Information for All Clients

When a client has an appointment, ask them if any of their contact information has changed. Making sure that you have the right phone number, address, and email address is important if you must collect on a debt. For business accounts, make sure that you have the name and contact information of the person responsible for paying invoices. If you work in the healthcare or dental industry, you’ll also want to ask for updated insurance information.

Know and Understand Debt Collection and Telemarketing Laws

Although someone owes you money, your phone calls may still fall under telemarketing laws. It’s important that you understand when you can and can’t call, who you can and can’t call, the information you can give about the purpose of the car, and what you must do if the past due client requests debt verification. Failure to abide by the Fair Debt Collection Practices Act, local debt collection laws, and telemarketing laws can result in you facing a lawsuit filed by the debtor or even a state’s attorney general.

Review Account Information Before You Call

Before you pick up the phone, review the following account information:

  • Know the name of the debtor or debtors.
  • When was the payment due?
  • What services were provided and when?
  • When was the last time a payment was received on the account?
  • How much was that payment?

That information will help you if the person you’re calling has questions. Additionally, you should make sure that you have something on file that qualifies as verification of debt if it is requested.

Plan What You’ll Say

To optimize your debt collection strategy, you should plan what you’ll say during the call. You can find our sample debt collection scripts here. Remember that you will need to identify yourself, but you cannot share too much information with anyone except for the account holder.

Devote Time to Debt Collection

Debt collection isn’t easy. It can take a lot of time. Many people find it stressful. Take time each day to make calls on past due accounts. If you don’t have the time, get help. Clients ARM provides both first and third-party debt collection services for businesses. We are licensed in several states for third-party collections and we understand the importance of relationships. To learn more, schedule your free consultation.