Collection & Credit Insights
August 2003
Volume 11.7
We Help The Economy… Now How Can We Help You?
Even Congress agrees your collection agency plays a valuable role in
the United States economy. In a recent press release from the Associated
Press, Rozanne Andersen, ACA International General Counsel and Sr. Vice
President of Legal and Government Affairs, was testifying before a House
Ways and Means Committee.
Andersen was quoted in the release as saying, “Congress' recognition
of the value collection agencies play in the United States economy is
of monumental importance to the future of the Industry and affirms the
work of ACA's members, who diligently comply with the association's stringent
Code of Ethics, the Fair Debt Collection Practices Act, the Fair Credit
Reporting Act and the myriad of state consumer protection laws that control
their every day business practices.”
Credit Bureau Inc, and its three offices in Jackson, Adrian and Ann Arbor
is an active member of ACA International, the association for credit and
collection professionals with nearly 5300 members worldwide. You too should
recognize the value and let us help you by sending your accounts receivable
to your local Credit Bureau office, before they overwhelm your office's
bottom line.
Tom Oldani
General Manager
What You Should Do When Debtors Pay You
When a past due account has been placed with us for collection and the
debtor pays you instead of the Credit Bureau, we call that a direct payment.
When you are calling us to report a direct payment, the receptionist can
help you take care of it. There are only few things we need in order to
complete the transaction. When calling please give us:
- Your Company Name
- Your Name
- Debtor Identification (Name or Account #)
- Payment Amount And Remaining Balance
After you receive a direct payment, it is necessary to report that payment
to us as quickly as possible to prevent incorrect notices being sent to
a debtor. Thank you for your assistance in this matter!
Our Offices
Adrian Credit Bureau
(517) 265-8161
Ann Arbor Credit Bureau
(734) 665-6173
(800) 710-4821
Jackson Credit Bureau
(517) 787-5333
(877) 787-6273
Upcoming Events
Towing Rodeo
August 8-10, 2003
Relay For Life-Adrian
August 8-9, 2003
Detroit Dental Society
November 23, 2003
Welcome to Our New Clients
- Al Nallie Music Inc.
- Poolman Pool & Spa
- Amicare Home Healthcare (RAR)
- Dr. Edwin Peterson
- Oral & Facial Surgeons of Michigan - Fenton
- Rick Waldrop
- Reliable Towing
- John's Towing
- Mercy Healthcare At Home GRY
- Grand Beach II Home Owners Assocation
- The Oaks Resort
- Great Lake Appraisals
People don't care how much you know,
until they know how much you...
collect
THE WORLD MAY OWE YOU A LIVING, BUT ITS UP TO YOU TO COLLECT!
High Payment of the Month
High payment honors go to Louise, in our Ann Arbor office. She collected
$3,735.00 for a local sheriff department. Congratulations to Louise for
a job well done! Thanks to all our collectors for the work they do!
New Tool Against Identity Theft Launched
By Credit Reporting Bureaus
Victims of identify theft will need to notify only one of the three major
credit reporting agencies and that agency will relay the information to
the other two, the Washington Post reports. Experian, TransUnion,
and Equifax have joined forces to make the clean-up process a little easier
for consumers struck by identity theft. After a victim notifies one of
the three bureaus, all three will put a “security alert” on
the consumer's credit file, remove the person's name from mailing lists
for pre-approved offers of credit cards and insurance, and mail the consumer
a copy of his or her credit report. The bureaus also vow to speed up the
removal time for fraudulent items from credit reports after the victim
files a police report.
ACA International
ARE YOU INSANE?
Recently, I sat down with one of our leading sales representatives,
Deb Hundersmarck. She had just sold a local business and she had the accounts
to be collected in hand. We typically take a moment to familiarize ourselves
with a new client's accounts, looking for various items. Among many things,
we review the accounts for issues that could possibly develop and complicate
matters for our collectors. This primary goal develops from the idea of
inspecting them to be better prepared for potential problems and provide
the collectors with insight before the first letter is even sent.
Through our review we discovered an alarming concern with a few of the
accounts. It appeared this client preferred to continue to do current
business with a consumer they had identified to send to us. In other words,
this business was “writing off” an active customer to collections
and indeed still providing service to the debtor. Now this had not been
the first time we had come across a business that chooses to extend credit
to somebody who still owes for prior service. But let's just break down
the principal concept of this vulnerable accounting practice.
1) I have a consumer who I do business with and they don't pay me.
2)I invite the consumer to do more business with me and they still don't
pay me.
Reasonably, you get my point. The lesson learned is extending credit to
somebody who doesn't pay (or who has a history of poor payment) is like
sticking your finger in a light socket; it is plausible you will get shocked.
And surely after you've been shocked, if you put your finger back in,
no surprise! You will be shocked again. In our collection skills seminar
we have often described this practice with one word - insanity. By definition
insanity is repeating the same task over and over again expecting a different
result.
Now I am sure some of you may be thinking by now, “But there can
exist circumstances that dictate why providing service to somebody who
hasn't paid you is a good idea.” Indeed, if you are a medical provider
you certainly do have obligations to treat a patient who still owes for
prior service. However, if you are a private business and you do not rely
upon Medicaid, Medicare or Government funding of sorts, as long as the
person is non-emergency you are never forbidden from refusing treatment
or service due to past due balances.
So I can only inquire, “Why would you do so?” If history dictates
you won't be paid, stop the insanity and do not allow service to continue.
If you find yourself or your business falling into the habit of providing
service or merchandise when money is due, try following these simple suggestions
and always remember it is legitimate to ask for payment.
• Use the fact that the debtor wants to continue to do business with
you as leverage to collect past due balances.
• Remember never to give unless you get something in return, even
if it is a partial payment now with promise for the balance later.
• Use positive statements to aid in the collection of the past due
balance for example, “We would be happy to schedule your appointment
upon receipt of your past due balance.”
Now the client we spoke to had some reservations to terminating service
but after we spelled it out for them, I-N-S-A-N-E, they too realized the
problem with this practice and have since changed their policy.
Tom Oldani
General Manager
|
