Lesson 1, Topic 1
In Progress

1.5. Script for calls from debtors in verbal demands

ryanrori January 21, 2021

[responsivevoice_button rate=”0.9″ voice=”UK English Female” buttontext=”Listen to Post”]

Once an account is in Phase 2, by law, you can not discuss their account with them. You can not make payment arrangements with them. You can not settle for less than the full balance. You can not cancel the debt. Always refer them back to Transworld. 

“Your account is legally out of our hands, you’ll have to call the collection agency.  If you can’t locate the phone # they gave you, you can call 866-296-2174 and they will redirect you if necessary.” 

On our website under Phase 2 Verbal Demands and View/Update Accounts you can click “update” and add a note so the collector working the account knows that the debtor has contacted you regarding their debt. This knowledge will greatly assist in the collection efforts.
Prepare yourself: It is a given that some debtors will turn back to their creditors in an attempt to hinder Phase 2 collection activity just as a child seeks the other parent when one parent says ‘no’ to them.  Promises of payment, claims of harassment, and denial of contact are typical among the assorted reasons offered by delinquent accounts who wish to sidestep their payment responsibility.

It is to your benefit as a Phase 2 client to refer every debtor back to Phase 2 during this collection phase. Understanding beforehand that these calls are to be expected will help you prepare mentally for the excuses. The goal of every Phase 2 contact is payment in full by making your account the top priority in the respective debtor’s mind. Remember, your debtor has received several of your in-house statements and phone calls, five written demands from Transworld Systems and has had many opportunities to deal with you directly to either make payment in full or make payment arrangements.  Had they resolved their debt with you sooner, they would not be getting collection calls, so they brought it upon themselves.  

Here are some of the more common claims and payment stalls made by Phase 2 debtors:

Debtor says that the Phase 2 collector was rude, abusive, threatening, used profanity, called all hours of the day, etc. 

This is a debtor tactic to get you ask us to cancel their account.  Collectors are firm in asking for payment and the debtors don’t want to be told they have to pay, so they say the collector is rude.  There is no profanity being used or calls being made beyond the time frame allowed by law and the debtors who accuse collectors of cursing are usually the ones who cursed at the collectors themselves!  What is to be gained for you or Phase 2 if a collector used such tactics? Nothing. The federal law (FDCPA – Fair Debt Collection Practices Act) is very strict regarding the language and the wording of collection demands in both written and telephone contact. Our Phase 2 collectors are highly trained professionals and skilled in the various aspects of interpersonal communication. They are given compliance tests every 6 months which they are required to pass to keep their jobs.  We also have a law firm that calls in, pretending to be a debtor and makes sure that collectors don’t violate compliance laws.  They are goal-oriented, college graduates who are each under the constant supervision of their branch manager or assistant branch manager. All Phase 2 call center collection floors are open – no cubicles or partitions – so that all collectors’ procedures can be observed, heard and monitored.

You can always tell a debtor that they have the right to call back and ask to speak with a manager or supervisor instead of the collector who called them and that’s the best way to get them off the phone. 

Debtor wants to make payment arrangements with you or sends you a partial payment

By law, you are obligated to refer all debtor contacts back to Phase 2.  When a debtor has ignored all your previous contacts and the Phase 1 demands and now says they want to make payment arrangements with you, it is often a stall tactic to curb future collection calls.  Additionally, a professional collector will be able to obtain much more favorable terms on a payment plan than you would.  Lastly, if you let the debtor believe he can make payments to you, the collector’s impact will be greatly diluted and the debtor will refuse calls from the collector and insist he’s dealing with you directly.  Arrangements you would make with a debtor will rarely work out and you’d still have to pay a commission on any money received, so why would you want the burden of dealing with the debtor again who never kept promises in the past?  

Immediately notify Phase 2 of any payments made directly to you so that the debtor balance can be updated.  This can be done online under Phase 2 view/update. Also, make a copy of the debtor’s check because the banking information is useful.  If the check hasn’t been sent yet, instruct the debtor to mail it to Transworld so if it bounces, we have to deal with it.  

Debtor denies any contact with Phase 2 

Do not fall for such a claim when your debtors call you, out of the blue and as if out of good faith, looking to settle their debt. Remember, unless directly assigned to Phase 2, the debtor has already received and ignored five contacts from Transworld. By now they have also heard from a collection specialist from Phase 2. The debtor now knows the strength of your payment pursuit, and is looking to settle. Again, refer all debtors back to Phase 2.

Debtor says that Phase 2 would not accept a payment arrangement 

A collector’s goal is always payment in full and the first time a collector speaks to a debtor, they will not discuss payment arrangements, they will simply demand payment in full to show the debtor that they are in charge.  Very often, debtors who said they didn’t have all the money somehow come up with it because the collector was very firm in their demand for payment in full within a short time frame.  If that doesn’t work, then on subsequent calls the collector will set up arrangements to satisfy the debt and will obtain better terms than if they had agreed to a payment plan on the first call (now they’re doing the debtor a favor).  Payment plans are typically in the form of postdated check drafts which we obtain over the phone on a recorded phone line so we can cut and deposit the checks on the post dates without the debtor having to mail them.

Debtor threatens to pull their future business from you  

These statements are made as if they are not damaging your business now by not paying. Why would you even consider doing business with someone who has gone all the way to Phase 2 without paying?

Phase 2 has found that the majority of people are understanding of their creditor’s situation and want and do pay their debts, but there are always exceptions. Do not be bullied by threats of lawsuits, malpractice, or discontinued business; your business is already feeling the sting of their disrespect. Ask yourself, do you want their business if this is their way of doing business? How valuable is this professional relationship?
All Transworld Systems clients are protected from legal claims pertaining to collection activities by a Hold Harmless Agreement. This relieves you from any worry of debtors filing suit regarding collection activity. Many of these claims are merely attempts to cloud the issue and dispute the debt. Transworld Systems is committed to providing all of its clients with the highest quality service.