While we sympathize with the frustration of the person who is getting spammed by the calls of the debt collector, what we don’t comprehend is that it is their responsibility to give back the money they owe and the debt collector is hired to make sure that it is done without wasting any time.
But this had led to debt collector gaining a bad reputation, which is partially their mistakes as they go about the process with negligence and commit blunders while trying to collect the money. Today we are going to discuss the common errors that debt collector makes while trying to recover the money, which only decreases the probability of getting the sum recovered, ever:
NOT HAVING A CREDIT POLICY IN PLACE:
Even before any sale of products/services is made, it is pivotal that credit policy is established. Not having a credit policy, especially when the transaction is significantly large leaves room for extending the money. In order to mitigate the hassle of debt collection complexities in future, framework a credit policy so that you are able to keep a tab on lo, middle and high-risk customer.
NOT DISCLOSING THE IDENTITY:
Per the trade commission governing bodies, a debt collector is required to reveal their identity, cross verify their details. The debt collector also has to give the information on the creditor and provide proof of the debt. If a debt collector all of a sudden starts asking for confidential information from the customer without revealing their identity, the call would be considered suspicious, tarnishing business’s name.
TORMENTING THE CUSTOMER:
As a debt collector, it is your responsibility to adhere to the guidelines laid down on how, what, when of the debt collection process. Threatening them, using foul language, being impatient and bullying all are prohibited under the trade association guidelines. Failing to abide by the rules and regulations might land you in a lawsuit, which is the last thing you want in return of giving money to someone.
CONTACTING AT ODD HOURS:
Many customers have this common complaint of a debt collector calling the wee hours and asking for when will the money be returned. While we understand the helplessness of the debt collector, what they need to comprehend is that they cannot just call the person or people associated with them anytime. Not heeding this might lead to customer eventually sending out a cases communication letter to your agency.
NOT CEASING COMMUNICATION AFTER REQUEST:
If a customer has filed a request to be not contacted by a particular debt collector, the application should be obliged. Failing to do so would be considered a breach of rules and regulations.
CONTACTING EVERYBODY ASSOCIATED WITH THE CUSTOMER:
The only people you, as a debt collector are allowed to communicate, are the customer, their spouse, their attorney. Discussing the details of the debt with anyone else is prohibited, and you might face a penalty if a complaint is registered against you.
NOT SENDING OUT A WRITTEN NOTIFICATION:
To think that since the customer assured timely payment, a written communication would be necessary would be a blunder on your part and it will give the customers an edge, should a lawsuit happen. Within five days of contacting them, it is essential that a written notification including the amount of debt, the name of the original creditor along with the statement mentioning their right to dispute is issued.
NOT APPROACHING THE CUSTOMERS PROPERLY:
Wondering what does approaching the customer correctly means? Well, certain factors should be kept in mind when approaching a customer for debt collection. While calling customers too soon and bothering them with constant calls can damage your business’s reputation, being excessively patient might defer the collection to an extent where you might end up facing cash problem.
NOT FOLLOWING UP:
Many debt collectors fail to follow through the entire process after some time. This can either be entirely out of nature of not having enough time or out of apprehensiveness so as not ruin the relationship with specific loyal customers. But this is not a good practice, as it might lead to a cash crisis in the future. Make sure that a prompt and consistent follow up is done to get the debt recovered.
If you are having trouble getting back the money you gave to someone in need, with the promise to return it, we suggest you consult a debt collection agency that will make sure you get your money back with every possible legal means be it high court enforcement or through face to face debt recovery.
While avoiding these mistakes will surely ease the debt collection process but consulting a debt collection agency would be a better choice.
Because by hiring a debt collection agency, you no longer have to fear about breaking the federal or state debt collection law in getting your money back.