Over the past couple of weeks we have had an increasing amount of debt collection work and I assume this is down to the credit crunch, which is either making debtors more reluctant to pay or creditors more anxious to collect the monies owed to them.
I just wanted to outline the do's and don'ts when you are being chased for a debt. I've had a chat with my colleagues in the office to compile this list of "DO's" & "DONT's".
DON'TS
1.The worst thing you can do when speaking to someone like me is to swear and be rude, as there is no need for this. Any sympathy I had in relation to your issues goes out the window and makes me more determined to collect the debt from you. You must remember, irrespective of what one does, be it a traffic warden a tax inspector, or indeed a credit controller, we all have a job to do!
I understand that being chased for money is not a very nice experience, but being rude or threatening wont exactly make your debt disappear. In reality it means that we will resort to legal action sooner rather than later. This is not in your interersts and will simply mean that the unpaid debt becomes public knowledge and will more than likely cause you problems with any other creditors you have.
2. Burying your head in the sand and simply ignoring your debts is also a big no no. The problem will not go away. You need to talk to your creditors and explain why you cannot pay. In most cases your creditor will be more than willing to help out in some way. Failure to communicate with your creditors will result in legal action being taken against you. This will affect your credit rating, meaning that any future credit will be difficult, if not impossible to obtain.
3. The most annoying thing someone can do is to deny they owe the money, especially when we can prove that the monies are legally and legitimately owed i.e copy delivery notes or signed contract. All this will serve to do is to increase the amount you owe through the addition of legal and recovery costs. It is far simpler for you to admit that you owe the monies and pay them.
DO's
1. The best thing you can do if you receive a letter from a collections agency is to get in contact sooner rather than later. It shows that you are not ignoring the debt and are making efforts to pay.
2. If you are having financial difficulties, then tell us and through negotiation with our client, we may be able to arrange a payment plan for you. We are not evil monsters, we can be sympathetic and understanding. We appreciate that you cannot get blood form a stone and we will work with you to help you pay back the debt.
3. Be courteous at all times. Human nature dictates that people respond better to people that are courteous and polite. If you are having difficulties paying you debts you are hardly going to get help and support form the person chasing you for money if you abuse them. Being nice will help your cause and make me more inclined to help you.
4. Perhaps the most important thing is to always tell the truth. Honesty, is always the best policy. Credit Controllers are by their very nature "Sceptical" We are almost "psychic" when it comes to detecting those "porkie pies"
Well I hope the next time someone is chasing you for money you will remember a couple of these points!
Kieran Making Your Cash Flow
