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- Why Third Party Collection Agencies are Effective
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- Debt Collection Tips; Collecting from Delinquent Customers
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- Deduction Management; Deduction Write Off; The Deduction Management Process
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- Documentary Collections Frequently Asked Questions
- Dunning Notices; Past Due Notices; Friendly Reminders
- Humor in Debt Collections
- Improving Collection Performance
- Monthly Statements; Monthly Customer Statements
- Negotiating With Delinquent Debtors
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- Telephone Collections, Telephone Tips; Collection Tips; Collection Tools
- Transferring Collection Assignments
- Partial Payments
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- Partial Debt Forgiveness as a Debt Collection Tool
- Payment Plans; Extended Payment Plans
- Myths and Misconceptions about Business to Business Collections
- Understanding the Role of the Accounts Payable Department
- Using a Customer's Uncertainty as a Collection Tool
- When to Place an Account for Collection
- Selecting a Third Party Collection Agency
- Credit Holds
- Account Assignments
- Issuing a Final Demand
- Quality vs. Quantity of Collection Calls
- Confronting Delinquent Debtors
- International Debt Collection
- The Power Balance in Debt Collections
- Ten Truths about Business Collections
- Complete Text of the FDCPA
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Why Third Party Collection Agencies are Effective
Collection agencies are effective for a variety of reasons, including these:
Litigation: Many debor companies know (and those who do not are quickly told) that if a collection agency is unable to collect a past due balance through discussion and negotiations that it will arrange for the debtor to be sued in order to get the balance paid - or at the very least to get a judgment against the debtor that can be used to look for ways to obtain payment.
Psychological: An independent collection agent can create an emotional impact on a debtor. Used in combination with a more aggressive collection posture, third parties often collect when the creditor cannot.
Potential wider implications: Without fully understanding the or threat, a debtor may be concerned that other parties have been alerted to the debtor’s financial problems. The debtor may pay because they are concerned that an unfavorable credit history may prevent them from getting open account credit terms from other creditors in the future.
Expertise: Most collection agencies employ a calm, reasonable and matter-of-fact approach to their collection efforts. They have no emotional involvement in the collection process while their client (the creditor) may be less objective and more emotional.
A Focused and Targeted Approach to Debt Collection: By having an alternative collection mechanism, the credit manager can focus on more productive areas of collection activity. In addition, greater effort can be made in other areas such as order release and credit granting.
© 2010 by Michael C. Dennis. All Rights Reserved. Excerpted from "Credit and Collection Handbook" by Michael C. Dennis
Edited by Michael Zininberg