collection letters
Collection Letters
No matter how
carefully a company chooses its credit customers, there will be times when a
bill goes unpaid and steps to collect must be taken. The problem when writing a
collection letter is how to get payment and at the same time keep a customer.
The writer of a collection letter wants to get the money owed and maintain
goodwill.
Collection letters, therefore, should be persuasive
rather than forceful, firm rather than demanding. A fair and tactful
letter gets better results than a sarcastic or abusive one. In fact, collection
letters should be “you-oriented”; courteous, considerate, and concerned about
the customer’s best interest.
The purpose of collection letters is:
1.
To get the money.
2.
To keep the customer and future business.
3.
To build goodwill.
Collection
is a sensitive issue so the following practices may be avoided
·
Falsely implying that a lawsuit has been filed
·
Contact the debtor’s employer or relatives about
the debt
·
Communication to the other persons that the
person is in debt.
·
Harassing the debtor
·
Using abusive or observe language
·
Using defamatory language
·
Intentionally causing mental stress
·
Threatening violence
·
Communicating by postcard (not confidential
enough)
·
Misrepresenting the legal status of the debt
·
Communicating in such a way as to make the
receiver physically ill
·
Misrepresenting the message as a government or
court document
·
Communicating by postcard (not confidential
enough)
·
Misrepresenting the legal status of the debt
·
Communicating in such a way as to make the
receiver physically ill
·
Misrepresenting the message as a government or
court document
·
Any emotional reaction on the part of the debtor
may reduce the chances of recovery.
Successful
collection depends to on the following factors:
·
Understanding of Human Nature
·
Knowledge of collection policies and laws
·
Using persuasive / positive appeals effectively
The following appeals are generally used:
·
Appeal to fairness & justice
·
Appeal to pride
·
Appeal to Goodwill
·
Appeal to sympathy
Right attitude for successful collection:
·
Begin with assumption that most people will pay
·
Give no impression that you doubt the honesty of
the debtor
·
Use a courteous, reasonable tone but become
firmer
·
Be more demanding during the later stages of the
series
·
Remain with the law, don’t harass
·
Show understanding and flexibility while writing
delinquent accounts
·
Send collection notices quickly and regularly
·
Never imply in you messages that payment can be
avoid or postponed.
·
Retain goodwill throughout the series
·
Present your evidence and stick to the facts
·
Persuade the debtors of the benefit he will
receive by paying
·
State clearly the specific action the debtor
must take
