Clients don’t always know what information agencies need to collect a debt. As ACA member Ronna Denny learned, a little outreach can go a long way.
8/28/2018 14:00
In the accounts receivable management industry, information collects accounts. Have you ever looked at a file sent to your office for collection and wondered why it didn’t contain useable data? You’ve probably asked yourself, “Why would the client’s staff not ask for this information?”
You likely have a specific idea of what information a perfect collection file would contain, Ronna Denny, senior vice president of legal for CollectionCenter Inc., writes in the August issue of Collector magazine.
Have you considered educating your clients on what information is in that ideal file? Do you have methods in place to educate clients on what type of information can help you collect accounts? How do you identify which client is missing information and what information is missing?
To address these issues, Denny’s company, CollectionCenter Inc., conducts frequent client audits. The company looks at the information it would like to have in a perfect collection file and compares it to the information it actually receives from the client. Often, CollectionCenter can identify trends in missing information.
One client may turn over files that rarely have Social Security numbers while another may turn over files that fail to list telephone numbers for the consumer’s place of employment, Denny reports.
The CollectionCenter sales team uses the information identified in these audits to educate clients on how the right data points can increase recovery.
In addition to audits, CollectorCenter’s director of public relations, Amy Canaday, provides both on-site and off-site training seminars for clients, who often feel uncomfortable asking consumers for information or money.
But wait—wouldn’t training clients like this decrease the volume of accounts placed with our agency?
“We’ve found that if we show our clients how to do a more efficient job of obtaining information up front and setting the expectation that payment in full is due from the start, it makes a more collectable account once it is placed with us,” Canaday said. “Helping them understand proper aging and identifying where they should spend their time ensures timely placement.”
Her client seminars often cover how to identify and respond to different consumer personalities, what information is necessary to increase recovery, magic phrases to increase collection rates and the eight steps of a collection call.
“We teach our clients that by asking a consumer to pay for services rendered, not only are they doing the right thing … they are asking the consumer to do the right thing. Getting them in that mindset really provides them with a higher level of confidence and success,” Canaday said.
It also increases recovery, which is the reason the accounts receivable management industry exists.
Subscriptions to the Collector magazine digital edition and email notifications for each new issue are available for ACA International members by logging in to ACA International’s website here. Members and nonmembers can also purchase a print subscription. Nonmembers can create a guest profile on ACA’s website to subscribe to available publications.