How to Collect Your Money without Breaking the Law
Avoid Collections Fines, Do it Legally or risk losing your business! Collect delinquent payments easily through learning customer relationship skills.
Being a national trainer and consultant for many years, I have found that many businesses and individuals, especially entrepreneurs, find themselves in the position of collecting money from customers and attempting to recover bad debt from delinquent customers.
People who work in organizations such as doctor & dentist offices, banks, hardware stores, material supply stores and many others that decide to finance goods and services, end up performing collections activities even though they have had no training and usually were not even told, when hired, that collecting money from customers would be a part of their job activities. Having spent over 10 years in finance, my experience has shown that most employees would have rethought accepting the position had they been informed money collecting activities were involved.
Internal Collections vs. Outsourcing
Collecting money from customers is not something that is enjoyed by many. However, if you know collections law and the best techniques, accepting payments that you don’t have to ask for comes with ease. Money collecting can be easy and even enjoyable if you know how to use influencing skills and advanced interpersonal communication techniques so the clients and customers want to pay! That’s not only when collecting money from customers becomes consistent, but you also run virtually no bad debt and delinquency.
Benefits to you
Of course that means that you then have little, to no money, collection to do! In essence, you get your money more quickly, with little conflict and with much less time and effort! That’s collecting your money; not taking half of everyday and endless conflict to do it or paying a third party a ridiculous amount of money to get what you are already owed! It’s yours! Don’t give a huge percentage to a group who will only go after large balances and alienate every customer they interact with. Not to mention that some agencies use unscrupulous tactics and can get you major fines from the state and federal government because you paid them to do what they did!
The Performance of collections activities is governed by the federal law (The Fair Debt Collections Practices Act) and enforced by the Federal Trade Commission. It’s been in place since 1978 and due to the tremendous volume of complaints every year, recently a new federal agency was created to be more active in identifying and seeking sanctions against collections law violators (the Consumer Financial Protection Bureau).
Choosing Collection Agencies
Many small businesses turn to collection agencies for their collections needs. Some are good, most are not; they do not protect the client relationship AND they charge way too much. Most only work the large accounts because they charge on a commission basis. Another drawback with most collection agencies is that they are set up to fail. They hire unskilled employees, then do not provide the prerequisite training needed and pay them through a commission platform where they are forced to collect the only way they know how to get paid: usually, through force, threats, and intimidation.
Unfortunately for collection agencies that operate that way and the businesses that hire them, there are state and federal laws dictating how collections in this country and each state must be performed. Violation of those laws can run into the millions of dollars in federal fines and include business dissolution. In addition to the collection agency being punished, the business that hired them can be punished as well for what the collection agency they hired did under federal law. The result is not only are you required to collect in accordance with the law but anyone you hire to collect for you must adhere to the laws as well or your business can be fined or worse.
Many businesses suffer from employee turnover, negative work environments, and poor employee work outlook because of collection activities being done by the unskilled. Collections is like working with nitroglycerin, follow the process and steps and nitroglycerin is a very useful tool. Handle it wrong and it blows up in your face. Not only creating conflict but resulting in even greater loss of needed revenues for the business.
Best Money Collections Online Training Program
TLI, a top Leadership Development Institute, offers an online, hour and a half video learning program designed to teach anyone the law, tips and processes to easily collect your money from customers. The Money Collections Program also teaches how to maintain and build positive relationships with the customers so they want to pay you since they know they do not have to! The law and steps that must be taken are spelled out on activities such as: (Click here to review and get the program).
- when you can call
- where you can call
- who you can call
- how many times
- very specific requirement s for notices
- what you MUST say at the beginning of certain collections activities to the debtor
- the process you must adhere to take legal actions
- and many more
Successful collection and bad debt recovery requires mastery in relationship building as well as advanced interpersonal skills, techniques and behaviors. Of course that is in addition to a thorough knowledge of Collections Law, ensuring legal collections activities. For each individual violation whether a letter worded improperly or an employee speaking to a debtor improperly a fine of $1000.00 can be levied.
It’s important to follow the law but just as importantly it is important to collect and recover every penny owed to the business. In order for any business to be of service to customers they must be able to pay their overhead and generate a profit for the owners. If not, what’s the point of owning the business? Many in professional occupations: doctors, attorneys, veterinarians, etc. have a horrible time trying to collect money. First medical school doesn’t even teach people skills much less collections techniques. Second they don’t know how to collect and still be positive, inviting and open to the past due customer. Knowing how to collect your money can make tens of thousands of dollars a year difference to your business and personal income!!
With this program, “How to Collect Your Money without Breaking the Law“, for the price of a car tire you can recover enough money each year to buy a fleet of new cars with tire already on them! It is designed to immerse and take anyone from knowing nothing about collections to being a positive, powerful, and very success collections professional who only knows how to collect money legally!! Get them started today!!