Best Practices for Making Collection Calls

Association of Business Training
November 4, 2013 — 887 views  

Collection calls are inevitable for any person who has taken a loan or is in debt. Most people are uncomfortable with such calls. The person who makes these calls should be very careful in his approach and should be well prepared in advance; only then will the call be successful and give the desired result.

Pre Call Planning

Before making the call regarding debt collection, the caller should prepare himself in several areas. He should be well versed with the person’s personal details, such as the amount of outstanding debt, timeframe of debt, and reasons for the debt. This requires extensive research done on the client and his history. The caller should do as much research as possible by making use of official documents, transaction history, and buying history.

Be Proactive

It is pointless to get into loud arguments. The caller should try to present his case in as polite a way as possible. The caller should try to get into a frank discussion with the client and his debt. He should patiently explain what an outstanding debt could mean for a person and how it could affect his life and career. The caller should try to be as friendly and helpful as possible. This will help to gain the trust of the client and make him more likely to repay the debt.

Common Excuses

The caller should be ready for some common excuses that the client could offer during the phone conversation. Some of these excuses are not having any money, having lost their job, needing permission from their boss, personal emergency, and illness. These common excuses might be genuine reasons in certain cases. The caller should also watch out if this is the case and modify his approach accordingly.

Closing the Call

The call should be closed only after getting a reassurance from the client. Only after the client guarantees that the debt is going to be returned, should the caller close the call. Before closing the call, the caller should offer a summary of the call and the debt details to the client. The client should carefully listen to this and answer that he has understood everything.

Follow Up

After the call is closed, several follow up activities need to be done. The caller should check the records over the next few days to ensure that the debt has been paid. If the debt has still not been paid, then he should call the customer again. If, even after being called multiple times, the debt is still not paid, then the caller should go for legal arbitration. Legal arbitration is often costly and time wasting. It should, thus, be the last resort, when nothing else has worked.

In conclusion, it can be said that a debt collection caller is responsible for ensuring that a client’s debts are paid on time. However, it requires a systematic approach and can be quite frustrating because it takes a lot of time. Nevertheless, the caller should try his best and hope that the client pays.

Association of Business Training