The Basics of Collection Investigation: Part 2

What kind of proof do you need to collect a debt?

It’s vital that a debt collector reviews not only invoices and receipts, but also any correspondence that the creditor had with the client.

Communication with the Client: The debt collector will communicate directly with the client to gather more details about the transaction. This includes asking for product/service descriptions, dates of sale, delivery records, or evidence of service completion. If there were any changes or adjustments to the sale after the initial agreement, the collector will need documentation of those modifications.

Customer Correspondence: Any emails, letters, texts, or other recorded communications between the client and the customer should be reviewed. This helps establish whether the customer had concerns, complaints, or issues with the product/service that could affect the legitimacy of the debt.

Learn more in our latest article.

Experience a Thorough Commercial Debt Collection Investigation

The commercial debt collection professionals at RSD are committed to thoroughly investigating your collections case. If you have questions, call (248) 370-8160 or submit a contact form. If you’re ready to place a claim, fill out our claim form. We look forward to helping you!

The Basics of Collection Investigation: Part 1

What does a debt collector look for when they collect?

There are a few key items that debt collectors always address in a collection investigation:

Review of Invoices and Contracts: The first step is usually reviewing the invoices, receipts, or contracts associated with the sale. These documents detail what was sold, the agreed price, and the terms of the transaction. The collector checks to ensure that the goods or services listed match the customer’s purchase, and that no unauthorized charges were added.

Delivery and Proof of Service: If the transaction involved physical goods, the debt collector may investigate delivery records or shipment tracking to confirm the customer received the items. For services, they will look for proof of service, such as completion reports or timesheets.

Investigation of Discrepancies: If the customer disputes the debt by claiming they didn’t receive the goods or that the services were unsatisfactory, the debt collector will compare all gathered documentation against the customer’s claims. This can lead to negotiations, adjustments, or, in some cases, legal action if the dispute remains unresolved.

Learn more in our latest article.

Experience a Thorough Commercial Debt Collection Investigation

The commercial debt collection professionals at RSD are committed to thoroughly investigating your collections case. If you have questions, call (248) 370-8160 or submit a contact form. If you’re ready to place a claim, fill out our claim form. We look forward to helping you!

Advantages and Challenges for Emailing a Debtor

Is it best to call, text, or email your debtor?

Here is a list of advantages, challenges, and techniques for typing up an email to a debtor:

Advantages

• Detail-Oriented: Emails allow for more detailed explanations than texts, making them suitable for repayment plans and agreements.
• Record Keeping: Emails provide a clear, dated record of communication, which can be referenced later on.
• Flexibility: Debtors can read and respond to emails at their convenience, which can be less stressful than a phone call.

Challenges

• Delayed Responses: Debtors might take longer to respond to emails compared to texts or phone calls.
• Email Overload: Your email might get lost or go unnoticed if the debtor’s inbox is full.

Techniques

• Structured Approach: Use a clear structure with headings and bullet points to make the email easy to read.
• Include Documentation: Attach relevant documents to support your negotiation.
• Professional Tone: Use a formal and respectful tone throughout the email. Avoid using jargon that the debtor might not understand.

Read about the best practices for contacting debtors in our latest article.

Having Trouble Collecting B2B Debt?

If you’re running into issues communicating with a debtor, a business debt collection agency like RSD can take the reins! To learn more about how the process works, check out the RSD 90-Day Collection Process. To get started with a claim, call (248) 370-8160 or submit a contact form here.

Advantages and Challenges of Calling a Debtor

Is it best to call, text, or email your debtor?

Here is a list of advantages, challenges, and techniques for picking up the phone and calling a debtor:

Advantages

• Immediate Interaction: Phone calls allow for real-time communication, which means you can address problems on the spot.
• Personal Touch: Speaking directly can help build trust, making it easier to negotiate your terms.
• Clarity: Talking on the phone reduces the risk of the debtor misinterpreting.

Challenges

• Unavailability: Debtors may not always be available or willing to take a call.
• Emotional Responses: Direct conversation can sometimes lead to heightened emotions, which can make it harder to find a solution.

Techniques

• Preparation: Before making the call, gather all the information about the debtor’s account you have.
• Active Listening: Pay attention to the debtor’s concerns and financial situation. This shows empathy and helps craft a solution that works for both parties.
• Stay Professional and Patient: Make sure you stay calm and professional, even if the debtor gets upset. Patience and understanding can lead to a more productive conversation.
• Offer Solutions: Be prepared to offer flexible repayment plans or settlements that might make it easier for the debtor to pay you back.

Read about the best practices for contacting debtors in our latest article.

Having Trouble Collecting B2B Debt?

If you’re running into issues communicating with a debtor, a business debt collection agency like RSD can take the reins! To learn more about how the process works, check out the RSD 90-Day Collection Process. To get started with a claim, call (248) 370-8160 or submit a contact form here.

The Debt Collection Timeline: Part 2

How do agents actually go about the collection process?

RSD agent will continue to make written and verbal demands upon the debtor on a frequent basis until one of the following outcomes occur:

1. Paid in full.
2. Settlement is agreed upon and paid.
3. Payment plan is setup and executed (exception to the 90-day rule, as many plans take up to 12 months or more to complete).
4. Litigation is authorized and carried out (exception to the 90-days rule, as litigation may take anywhere from 6 months to 2 years to complete the process).
5. Account closed as uncollectible with explanation provided to client.

Learn More About Debt Collection Companies

Debt collection companies shouldn’t hide their collection process. If you’re curious about how RSD works, check out our Learn More articles, or submit a question through our contact form! To place a claim, call (248) 370-8160 or submit a claim form here. We look forward to helping you!

The Debt Collection Timeline: Part 1

How long does it take to collect on a debt?

Our clients love and appreciate the fact that our collection process, on average, takes only 90 days to complete. Our process is efficient, streamlined, augmented by technology, and generates results quickly. Below is a summary of the process:

1. New claim is processed same day as received. Acknowledgement is emailed to client.
2. Claim is assigned to a collection representative.
3. Demand letter is mailed and emailed to the debtor on day 1.
4. RSD agent reviews the file, investigates the debtor for (active, liens, judgments, etc.) and contacts the debtor for payment.

Learn More About Debt Collection Companies

Debt collection companies shouldn’t hide their collection process. If you’re curious about how RSD works, check out our Learn More articles, or submit a question through our contact form! To place a claim, call (248) 370-8160 or submit a claim form here. We look forward to helping you!

Knowing When to Walk Away

At what point is a collected debt outweighed by the cost of legal action?

Though it’s not ideal, there are circumstances where it may be better to halt collection efforts:

• Low Recovery Probability: If the debtor lacks assets or income to satisfy the debt, pursuing legal action may result in additional costs without a realistic chance of recovery.
• Cost-Effectiveness: For small debts, the expenses associated with litigation (e.g. legal fees and court costs) may outweigh the potential recovery.
• Time and Resources: Pursuing legal action can be time-consuming and resource-intensive. If the effort outweighs the potential return, it may be more efficient to cease collection efforts.
• Disputes and Defenses: If the debtor disputes the debt and presents valid defenses that complicate the case, resolving the matter outside of court may be preferable.

End Your Search for Debt Collection Companies

Navigating debt collection requires a balanced approach, weighing financial considerations, legal rights, and practical realities. By carefully evaluating these factors and exploring alternatives, creditors can make informed decisions that maximize the chances of debt recovery while minimizing unnecessary costs and efforts. A debt collection company can help you navigate the process. If you have questions, or if you’re ready to place a claim, call (248) 370-8160 or submit a contact form here.