Credit Policy for businesses and how to extend credit and manage credit risk

Look at the debtors account and depending on the age of the debt, how many times you have contacted the debtor, the dollar amount and the circumstances this can be different in every situation.

One of the most critical things a collector can do before hanging up no matter what the circumstances of the debt are is to REPEAT what the plan is.

Here is an example of a critical statement you could use:

"So Frank, you will mail me $100 today and then $200 a month on the first of each month until this is paid in full, is that correct?" Then WAIT!!! Do NOT break the silence, let the debtor answer you. When they say yes or hang up on you, print out a confirmation letter reiterating your final closing statement and mail it with a stamped addressed envelope. Then move on to the next account and do the same.