Despite the fact that the economy is in despair, Americans still will simply not put off spending until they can purchase and instead opt to take on more and more debt. This raises some interesting issues for the collection industry. For collection agencies, business is booming. There is more debt than ever, just waiting to be collected.
Yet carrying through on their job to collect that debt is proving to be harder for collection companies than it ever was before. Either debtors just do not have the money to pay back their debt, or the money they do have is to cover their bare necessities: food, shelter, and a car. The local creditor is not going to come in and take the average debtor’s house, so creditors are being placed on the back burners for now.
Management in the collection field should try to remember three ideas that I write about in this three part series. The first idea is to network, stay “teched up” and always search for ways to improve the current debt collection team. The second idea is to improve the relationships that they have with their debtors, and the third idea is that management needs to remember to be nice to their star employees.
In the business environment, connections are crucial, and isn’t the internet just one World Wide Web of potential connections? Get online and do that networking. Talk to other collection agencies, creditors that you could potentially do business with, and while you are on the computer, always be on the lookout for the next big trend. Some debt collectors are considering texting debtors to let them know that their account is being sent to collections.
In my humble opinion (but hey, what do I know? I simply get paid to write about this for hours a week) the collections industry should attempt to get the Fair Debt Collection Practices Act updated. The thing was written in the 1970s, is outdated and therefore doesn’t account for cell phones. Many debt collection agencies realize that younger people would rather make payments online and have set up systems to do just that, which is a great idea. Since the economy has gotten so rotten, older people have gone in to debt as well, and accommodations should be made for them too, making it easier for them to pay. If you want a debtor to pay, make it easier for them to do so. It’s as easy as that. To Be Continued In Parts Two And Three