The Secrets Collection Agencies use for Collecting on Bad Debts
Collection agencies have been doing it for years — collecting on a consumers bad debt who’s essentially said they won’t pay. Even the most hopeless of bad debts can be collected on — here are six of their secrets.
According to a leading collection agency, they are much more likely to collect on bad debts when they send a series of collection letters. Deep down, you probably know why collection letters are better. It’s the same reasons that would make you uncomfortable getting such a call in the first place — if you know why a collection agency is calling, you will avoid the calls and if you do get the collection agency on the phone you will most likely have a bad attitude, or just make excuses like “the check is in the mail” to get them off their back.
Collection agencies try to get you to set a date for paying back your bad debt. When they call, they will start by asking to be paid today — then negotiate from there.
Courtesy is important for collection agencies because it makes it likelier that you will repay your debt. There are very strong laws against harassment in the collections process and collection agencies do not want even to approach those limits.
Collection agencies and you both want this debt to go away. Collection agencies will create a repayment plan but it’s not what they had hoped — still, it’s better for them instead of holding onto your bad debt.
You might feel that the time collection agencies spend collecting the debt may not be worth whatever they will recover, remember that they do.
The one secret the collection agencies know about collections is the value their services. Businesses do not usually write testimonials for the collection agencies they use or even talk about them — collection agencies sometimes will collect on bad debt for under $20.00 which is a pretty good business secret.