Debt Collection Process
Transcript for the video:
Thank you for your interest in our collection agency services. We have been providing superior debt collection services since 1991. This presentation provides an overview of our collection process.
We typically start collecting within one business day of getting a claim. We send a demand letter by mail, fax and email and follow up with a phone call the same day or the next day.
After this initial letter, our primary form of communication is by phone with email as appropriate. We report to clients via email on individual claims and we call when necessary to discuss complicated situations. We also send monthly status reports on all claims.
Our goal is to get the debtor on the phone and figure out the real reason why they are not paying. In many cases, understanding the real reason is key to coming up with a strategy to get them to voluntarily pay. Each case is different and each debtor is different. So, while there are many similarities on cases, the collectors ability to take a custom approach on each claim is critical.
Many of our prospective new clients say “if all you are going to do is call, we’ve already done that, so how are you going to collect when that hasn’t worked for us.” There are many reasons why, including simply the fact that they see our client’s have escalated the matter and are not willing to continue living with the same excuses. But, there are many other factors, including our approach, experience, and the different things we can try to motivate payment. We have been in business for over 20 years, and we only get paid if we collect. We have an 85% success rate on claims against open businesses. That is the best evidence that we do something different than what our clients can do to bring in the money.
Our custom approach on each claim includes determining when to call, who to call, what time to call, when to use email, and when to schedule the next communication attempt. It also includes deciding what phone number to use for the call – one they will recognize, one that is blocked, or from one of our many different area codes that the debtor cannot recognize. We also figure out what to say and when to escalate pressure based on the specifics of the individual claim.
Many collection agencies start off extremely hard hitting from the first phone call, simply trying to scare the debtor or verbally beat the money out of them. Perhaps this is the winning strategy for collecting from individual consumers, but we know it is not the best strategy when it comes to most commercial collections. The downside to this approach is that if the debtor holds firm or refuses to engage, the only option remaining is to go to court, which means spending money and waiting a long time to maybe get paid. We believe an assertive, professional approach is the way to start each claim. As we learn about the personality of the person we are dealing with and the situation they are in, we adjust our approach to create success. If the debtor does not respond to this, then we keep increasing the pressure. Consistency and persistence convinces most debtors to pay. If not, we eventually threaten to send the file to the attorney. If we have to follow through with this threat, we then do a full second collection effort under the name of our in house law firm. We collect over 80% of our money under the name of our agency, and over 95% without going to court. But, if the only way to collect is to go to court, and the facts and circumstances justify the investment, we have a nationwide network of attorneys who work for us primarily on a contingency basis.
The vast majority of calls made by other collection agencies are determined by a predictive dialer and handled by 12 dollar an hour tele-collectors who are reading scripts and cranking out tons of calls each hour. These are augmented by a standardized letter writing campaign. Research is done in bulk by computer with no human analysis, just populating the predictive dialer with potential phone numbers. This may be an appropriate approach for small matters, but clearly this is not going to be nearly as effective as our custom approach. Other agencies clearly have quality control problems – more complaints are filed against collection agencies than any other industry – but no debtor or client has ever filed a complaint against The Kaplan Group.
The collection process is very complex. It would take days to explain all the different techniques and approaches we use to create an 85% success rate. We provide more information in the next video which describes our expertise for collecting large claims. Thank you for your interest in our services. Our contract and claim placement form will be sent to you automatically by emailing us at inquiry@kgaction or filling out the “Request A Quote” form on this page. If you have any questions, include them with the email or quote form or give us a call.
We look forward to collecting your money!