COLLECTION TIPS...

Telephone Collection Calls

• Telephone contact is more costly, but much more effective
  
  
• Calls should supplement letters and follow up on what was said in the letters
  
  
• Being two-way communication, calls can identify and solve problems
  
  
• Sell and keep control on the collection call
  
  

• The collection call format:
  
  
  1. Identify the debtor
     
     
  2. Identify yourself
     
     
  3. Demand payment in full
     
     
  4. Psychological pause
     
     
  5. Determine problem or objection
     
     
  6. Find solution
     
     
  7. Close the call and get commitment
     
     
• Collection calls have three phases:
  
  
  1. Opening Phase - The tactics are:
     
     
     • Verify the debtor's identity. (I'm calling for (name)...is this he/she?)
       
       
     • Verify debtor's address
       
       
     • Identify yourself
       
       
     • State the debt is owed (You owe us $567.35...)
       
       
     • State the type of action you desire. ("I need payment in full today.")
       
       
     • Pause and let the debtor respond
       
       
  2. Negotiation Phase - The tactics are 4 steps in this order:
     
     
     • Step One: "I must have payment in full today."
       
       
     • Step Two: "When can you send payment in full?"
       
       
     • Step Three: "How much can you send today?"
       
       
     • Step Four: "When can I expect a payment?"
       
       
  3. Closing Phase - The tactics are:
     
     
     • Collector recaps what is going to happen and when. ("To recap, you will be sending me $567.35 this Friday, (date). Is that correct?")
       
       
     • Payments are always expressed as dollar amounts; points in time are expressed as dates
       
       
     • Debtors must confirm that they understand the next action on their part