ways to improve debt collection methods?

Answer 1

How about this novel idea.....

Understand the debtors problem. Everyone isn't just a deadbeat. If they have had a financial disaster (lost job, medical bills, etc...) then understand that you can't collect what they don't have.

Work out a payment plan. Sure it's going to take a bit longer to get all of your money, but what alternative do you have?

Do your research. There is a lot of public information about your target available. If necessary, hire a detective.

If the debt is large then you will want to spend the money on these investigations. If it's small, well that's what small claims courts are for.

Your idea of harrassment, phone calls, threats, and intimidation only causes the debtor to run and hide. After wasting several months (or years) doing this you finally realize you are just wasting your time and you end up going to court anyway.

But the very best method! The absolute most productive way to collect bad debts...is not to get in that position in the first place! Why are you giving credit to someone who already has a poor credit history, little income and lots of other debts! You deserve to be screwed!

Answer 2

If you are talking about trying to collect from a friend or family member you may just want to chalk it up to experience. Never loan $ to these folks you will never see it. You may as well just give it to them, and forget it.

On the other hand if you work in the collection field you are limited by what you can do by the FDCPA Fair Debt Collection Practices Act. You can get sued for violation of this federal order.

Best thing to do is explore with the debtor ways to get the $ not just pound them for it. Sources of money are: Life insurance policy that has cash value, car title loans, pay day loans, 401K, sale of assets even small ones like tv, stereo, computer, dvd player, furniture etc. Talk to them about getting a part time job or best offer them a discount or settlement for cash on the debt.

Your approach if KEY. Call them up state your business ask them what caused the default. Unexpected expense, illness, lost job? Have they applied for unemployment compensation? Sympathize w/them. Try to get a commitment for partial payments so they get back in the habit of paying until this is solved.

Answer 3

there are lots of ways to collect debt, but you can exactly use it across the board, some people have got lots of summons they are practically immune to it. Some have got very thick skin and would give way even though u attempt to shame them in public. The best thing is to understand your debtor, assess what is the most effective way against him and then use that method. It's a psychological warfare against debtors.

Answer 4

1 of the best way is to arrange an instalment plan for the debtor to return the debt. note that it may take a few years or more to totally return a big debt but along the way, you will build up a gratitude from the debtor if he or she is sincere in atoning for the mistakes he or she made in his or her finance housekeeping and responsibilties.

no one is perfect. making friends and merits are better than creating bad karma.

ps: also pray that the debtors can fulfill their instalment plans just as the debtors will hope he or she can return you the debts.

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