Sally the collector scanned through her new set of claims. The first seemed pretty
straightforward. Labels Boutique had two outstanding invoices for the designer Donna
Karen. She picked up the telephone and called Donna.
Sally: "Good afternoon, Ms. Karen. I represent Labels Boutique. You have an
outstanding balance with them."
Donna: "Well, I never received and merchandise. Do you have a proof of
delivery?"
Sally: "Hmmm...I don't have that information on hand. I will have to contact
Labels Boutique and get the proof of delivery. I will forward that to you."
The debtor had effectively stalled for a few weeks.
How many times has this happened to you? Or maybe it was a similar situation, like "I
need copies of the invoicing," or "Can you send me a copy of the signed
contract?" Whether the debtor is stalling on purpose, or legitimately needs the
information, the claim is delayed and the money is not coming. To collect on the
outstanding balance, the collector must provide all of the pertinent information
that the debtor requests.
Almost every collection attempt is delayed because the collector does not have all the
necessary information. When the debtor makes a demand for the information, the collector
must first contact the client and request it. Then the client needs to find that
information and send it to the collector. Finally, the collector forwards the
informationto the debtor. When a collector is able to provide documentation fast, they
have more control over the claim and the ball is always in the debtor's court. Having all
the information on hand helps to cut through the smoke and get right to the money.
Here is a list of some basic documentation that every creditor should have to help the
collector and increase the chances of a successful collection:
With this information on hand, the collector can dodge the excuses and get to the
money. Sending this information when placing the claim will save valuable time, resources
and money.
Here's the above story again, with Sally having all the information and the debtor having
nowhere to go:
Sally: "Good afternoon, Ms. Karen. I represent Labels Boutique. You have an
outstanding balance with them."
Donna: "Well, I never received and merchandise. Do you have a proof of
delivery?"
Sally: "Why yes, I do. I also have the invoices, a current statement of
account and a contract outlining the terms of the agreement with your signature on it. Why
don't I fax this information to you for your perusal and have my courier pick up a check
tomorrow."
Donna: "Umm....err....ok."
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