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Confronting Delinquent Debtors
Confronting seriously delinquent customers about their past due balance is appropriate. Confrontations with delinquent debtors often do not have a positive outcome.
A candid discussion about the status of the account, the reason(s) for the delay in payment and the creditor’s need and expectation that the problem will be resolved sooner rather than later is often effective. This process is confronting the debtor. The goal involves examining the problem and discussing options and arriving at a mutually acceptable outcome.
Confrontations with delinquent debtors can seriously damage customer goodwill. Candid discussions that do not result in a promise of payment usually end up with the debtor providing additional insights into their financial problems. Credit professionals either want payment or to gather new information. Confrontations are less likely to result in payment or additional information.
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