Editor: The following article is offered for free use as long as Resource Box at end is included in release.Debt Collections Q & A – Issue 5 By Jim Finucan © Tiare Publications 391 words
DEBT COLLECTIONS Q & A - #5
Jim: My question is simple. I don’t like to mess around so I just hand my delinquent accounts over to an attorney who sues client right away. I either get a judgment or they pay just before court date. Why doesn’t everyone do it this way?
Barry Ranken, OH
Barry –
Your approach is effective and often becomes last resort after several attempts have been made to reconcile a delinquent debt. But it’s important to decide how long you want to allow a delinquent debt to remain on books before you turn it over to a lawyer. Do you treat each situation same? i.e. do you wait same number of days? Do you send same number of notices no matter what situation? Do you send debtor a warning letter letting him know this will go to an attorney if not paid by such and such a date? Is your attorney a collection specialist who is taking steps to collect bill before moving forward with a court date?
I recommend adopting a specific procedure before you turn your attorney loose on debtor. One size doesn’t necessarily fit all. There are times that require understanding debtor’s problem;situations that might work themselves out if you waited just a little longer. At worst a few phone calls would let client know you are genuinely concerned about their success and are interested in helping them. This understanding approach cements a relationship and can result in years of customer loyalty.