Ethical Debt Collections

[MrChairman]

Hello All,

First let me say that I love these forums and have dramatically improved my credit from all of the FREE information I have found here. Over the past several months I have been toying with the idea of starting up a collection agency. Due to this current economy, a sad but true reality is that more cc and other types of debts will eventaully go unpaid and turned over a collection agency. As forum members, and most of you as current or former people on the receiving end of collection activity. What would be some things you think that could make me succeed in this business?

[IOBA]

Be kind.

Respect the person on the other end of the phone, the computer, or the mail.

Graciously accept weekly or bi weekly or bi monthly (every payday!) payments, even if the amounts are less than what you want to recieve.   

I am one that will pay my bills, but when I get socked with medical bills that toppled 65k, I *need* to be able to make small payments.   There is no advance planning for that surprise.   But I will pay the bills, I won't even ask you to settle, just let me make payments, interest free.  You will get your money.  All of it.

Say thank you.    Say please. 

Follow up with a hand written thank you card that personally acknowledges I am keeping my  word, that I am making payments (like I said I would!).

Be patient.

Don't loose your patience.   Don't loose your temper.

Just some ideas....

[MrChairman]

Very good suggestions. All money is good money as far as I am concerned. Especially if I buy a debt for .06 on the dollar and you will pay the full amount, I can stand bi weekly payments :-)

[Anonymous]

Don't forget what it is to be human.

[Booner72]

Watch the Documentary "MAXED OUT" and don't become like the CA's that are shown.  They're vicious and it made me want to just vomit.

[Anonymous]

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@IOBA wrote:

Be kind.

Respect the person on the other end of the phone, the computer, or the mail.

Graciously accept weekly or bi weekly or bi monthly (every payday!) payments, even if the amounts are less than what you want to recieve.   

I am one that will pay my bills, but when I get socked with medical bills that toppled 65k, I *need* to be able to make small payments.   There is no advance planning for that surprise.   But I will pay the bills, I won't even ask you to settle, just let me make payments, interest free.  You will get your money.  All of it.

Say thank you.    Say please. 

Follow up with a hand written thank you card that personally acknowledges I am keeping my  word, that I am making payments (like I said I would!).

Be patient.

Don't loose your patience.   Don't loose your temper.

Just some ideas....

---

I LOVE this answer, just perfect IOBA!

[IOBA]

Mustanglvr2006 -  thank you.  

[Anonymous]

With the current industry environment, it's definitely a hard market to enter. Curious, what kind of collections experience do you have? 

[MrChairman]

Chopbrocoli,

I don't have any debt collection experience but I am looking at targeting my collection activites for my local area as well as a specific market as relating to the web. I have research extensivley and haven't seen any collection agencies at all cater to this segment. Seems as though everyone wants charged off cc debt and the like.

[Anonymous]

You may have some research, but what you need to do is to work at a collection agency (whether it be a small mom and pop operation or a large CA that services accounts for large clients) to gain experience and to develop in order to gain expertise. 

Some things to keep in mind: 

1. Compliance: Licensing, bonding, disputes and frivolous lawsuits

2. Cost of skiptracing 

3. Realistic right party contact rates when trying to contact a borrower

4. List goes on

Have you been to the industry publication, insideARM?