However, Tackling Difficult Debtors Are An Entirely Different Matter

Category: Finance, Credit.

Businesses both big and small had risen and fallen because of difficult debtors.

Collection agencies are businesses hired to pursue debt collecting. Bad debts are an eternal source of pain for businesses, and are best left into the hands of the experts- the collection agencies. They are adept at tracking debtors and making sure they pay the amount they owe. However, tackling difficult debtors are an entirely different matter. Of course, there are different types of debtors to consider- each type has different means of persuasion, though the methods remain the same. It is easy to know the difficult debtor- he is the one with the most excuse.

He will craft any excuses he can, and sometimes he will adamantly say that he does not owe anything. He will blame everything from his computer to his boss to his present financial situation. Make sure you are talking to the debtor- don t let the debtor give you the runaround. Adopt a cool, professional attitude. As a professional, practice patience- and have an attitude. You have a contract, you deliver the goods, money must be returned and you have a right to expect payment. Never yell, never raise your voice, and never swear.

You re a professional- never allow things to become personal. Never ever threaten. Do not let the debtor sidetrack you with his various excuses and personal stories- remember that your purpose is to collect money or get a commitment and nothing more. Control the conversation- keep it focused on the business at hand. Ask questions. When difficult debtors lie about their reason for not paying, it is always coupled with a hope that you will accept their words at face value and drop the subject.

The more you ask, the faster you get to the truth of the matter. The more you ask of them, the more uncomfortable they become. When last demand letter went unnoticed, or when the debtor proved to be more difficult, you can impact his credit standing by reporting his account to major credit bureaus. After being subjected to incessant interrogations, sending the collection agent or the creditor a check becomes much, much more appealing than answering all the questions and cooking up one excuse after another. Most of the time, just a warning of reporting the debtor would suffice- sometimes, the debtor is just stubborn. He must clear his debt first. Reporting a debtor s delinquent account will most likely affect his credit in a negative manner for up to 7 years, limiting his ability to obtain credit in the future.

When this too, the only recourse, had failed is litigation. Go through the whole proceedings until the debtor learns to keep his promise, and pays. Follow through with your complaint- when you say that you will file a lawsuit, do it- else credibility is lost and the debtor will realize that all your collection efforts were merely empty threats.

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