Lesson 1, Topic 1
In Progress

1.4. Forward correspondence.

ryanrori January 22, 2021

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Forward correspondence

Official Debt Collection Notices

Often a company is issued with official documentation in the form of Statutory demands, Winding Up notices and sometimes the Director of a company may even receive a Directors penalty Notice from the Taxation office. Read on to find out what these notices mean to you.

How to Be a Great Debt Collector

Debt collection jobs continue to rise in popularity and in fact, the Bureau of Labor Statistics reports the industry will grow by 19 percent within the decade. The job can get difficult, as it can be challenging to contact people, discuss their debt and come up with viable debt repayment plans. Whether you aim to study as a debt collector or work in the field of debt collection already, there are helpful tips to keep in mind which can guide you to becoming most effective and successful at your job.

  • Learn the laws. To ensure you are aware of all your options for getting an unwilling debtor and to keep yourself from getting into any legal trouble, you should understand all of the laws and learn what you can and cannot do in order to collect debt. A successful debt collector knows the laws surrounding debt collection and how and when to use them.
  • Call at the right time. People most often work daytime hours, typically between the hours of 8 a.m. and 5 p.m. Although this is obviously not the case with everyone, you have the best chances of reaching a debtor by calling after 6 p.m. on weekdays and between 10 a.m. and 5 p.m. on the weekend.
  • Act sternly but not mean. Although it can become difficult when debtors turn angry and act agitated with you, keeping your attitude in check can mean the difference between getting a debtor to pay and having him shut down. People in debt are stressed out enough and living from one paycheck to the next with little spare money in between. You must keep a stern tone when speaking but remain friendly and understanding at the same time, to convince debtors to pay but also let them know you understand and are willing to negotiate.
  • Talk and negotiate a deal. For debtors who are unwilling or financially unable to pay back their debt, you may be able to collect at least a portion by offering to come up with a manageable debt repayment plan. For instance, you can make a deal to accept half the amount of money owed as long as the money is paid immediately in a lump sum.
  • Persist and have patience. Although it can be difficult at times, in order to be a great debt collector you must always be persistent and never give up just because a debtor hangs up on you, speaks rudely or refuses to pay outright. In most cases, the older a debt becomes, the harder it is to collect, so you should keep on your debtors and try different tips and techniques to recover monies owed.

How to Negotiate With Debtors

People who are owed money can end up quite frustrated when it comes to collecting the debt. Many times the debt is between a tenant and landlord, but it also can include personal loans between individuals. Obviously the loan or purchase was made when the circumstances were favorable for repayment, but something changed, and now as the creditor, you can find it challenging to collect your assets.

  • Write all the details of the transaction down on paper, if you have not done so already. Technically this should have been done before the loan was ever made, and both parties should have signed and dated it. If you are just dealing with a verbal agreement between two people, there is a strong chance that you will never be repaid if the lender skips town or refuses to communicate.
  • Call the person on the phone shortly after the first missed payment. Record each phone call, at least on paper, and write down his response. Assume the best scenario at first, and try to keep it on friendly terms. Mention that you might have just missed the payment in the mail, or perhaps he forgot his payment date–something that shows you think he is planning to keep his promise.