Lesson 1, Topic 1
In Progress

1.4. Making Payment Arrangements

ryanrori January 21, 2021

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This is your in-house tool to use during Phase 1 written demands.  NO arrangements should be made when a debtor is in Phase 2- Verbal Demands, refer debtors back to us at 800-291-4367 if they say they don’t have a specific person’s phone #.

When speaking with a debtor about making payment on their account, it is important to keep control of the conversation at all times whether over the phone or in person.  ASKING FOR MONEY IN THE BEST MANNER IS A THREE STEP PROCESS:

1) Sympathize: (show compassion) “I know how you feel, that happens sometimes.” (This will defuse any possible anger and catch them off guard)

2) Remind the debtor of their obligation: “Mrs. Smith your account was supposed to be paid on  _________ date. (This can possibly cause a little guilt on their behalf and have them realize you are right in asking for the money.)

3) Ask them:

“Mrs. Smith will you be in today or tomorrow?”

“Mrs. Smith will you be paying with cash, check, or credit?”

“Mrs. Smith of the $200 that is now due how much are you short?”

a) If they say they are short half, “Okay Mrs. Smith, lets do this, I’ll need the $100 you have now. I’ll mark it on my calendar that your check/money order should be here __________. Now, how much time do you think you’ll need to take care of the balance? Do you get paid weekly or bi-weekly?

b) If they say they are short the whole amount, maintain control of the conversation and you now dictate payment terms.

HOW NOT TO ASK….Here are the top three answers I hear when asking for money, and the debtor says they can’t pay the bill in full. However these answers are not how you will want to respond.

1) How much can you pay?

2) When can you pay?

3) Can you pay something?

NOTE: This gives control of the conversation to the debtor, which enables them to give you ridiculous answers such as “$5.00 per month”

Instead tell them what you are willing to accept in the form of two options i.e. “I can either settle your account for _____ dollars in the next 30 days or you can start making payments of _____ dollars per month for 3 months.”  By offering 2 options, you are asking them to choose one, not asking them to choose between paying and not paying.  At this point the debtor may make a counter offer.  This is good since you are now negotiating payment.