How To Avoid Two Big Mistakes In Your Collections

The first call should be a "reminder" to members still within their loan's grace period. If you don't get a response to your reminder call, your next call should indicate that the debtor's account is "delinquent" or overdue." Note: For privacy reasons, you can...

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Bibliographic Details
Published in:Credit Union Journal 2002-04, Vol.6 (16), p.6
Main Author: Boyle, Kathy
Format: Article
Language:English
Subjects:
Banking industry
Collection (Accounting)
Collections
Credit collections
Credit unions
Delinquency
Management
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Summary:The first call should be a "reminder" to members still within their loan's grace period. If you don't get a response to your reminder call, your next call should indicate that the debtor's account is "delinquent" or overdue." Note: For privacy reasons, you can only use these words if you actually speak to the debtor. If you get an answering machine, you may say you are making a "second call on the account." Based on my 12 years as a collections trainer and consultant (and 25 years as a credit union member), here is an example of a call that's especially successful for getting members to respond to answering machine messages about overdue credit card payments: "Hi, this is Kathy at the credit union. Gimme a buzz about your loan." Kathy Boyle is the author of "Collection Letters-and Strategies for Never Having to Use Them," recently published by CUES. The manual contains many other ideas on getting through to debtors, plus ways to use the Internet in collections. For info: www.cues.org or 800-252-2664.
ISSN:1521-5105