Making collection calls: best practices of top collection agencies

Written by: Pam Gaulin

Making collection calls may be one of the most important tactics collection agencies use to recover bad customer debt. Language and tone that are either not firm enough or are too harsh may turn a delinquent debtor into a resistant debtor who will not pay the bill. These calls need to be handled professionally and tactfully.

Different approaches to the collection call

Collection agencies have different approaches to calling debtors. Some may use strict phone call scripts to keep the calls as impersonal or as business-like and non-emotional as possible. Others may use more customer-friendly methods, as directed by you, when you have a business that relies on repeat customers or your business is more hands on. Consider the different approaches and customizations available when you shop around for an agency to handle your collection calls.

How collection calls work

The credit collections agency will place a call to the debtor’s phone number, which is provided by you. The caller will identify themselves and the name of the agency they represent. In addition, the agency will explain they are calling on behalf of your business to collect a past-due amount and state how much is due.

From there, the call proceeds with a polite but firm request for payment in full. Typically, the request is for the debtor to make immediate payment over the phone. The next best approach is to ask the caller to commit to mailing in a payment and reiterate how much the debt is. The debtor will be asked to commit to the date when they intend on sending in the payment.

Any information the debtor shares about their finances can and will be noted by the credit collections agency.

Collecting on past-due accounts

Aggressive approaches to past-due accounts include a reminder phone call or letter to the customer. This can be seen as too aggressive and is not recommended as normal practice, unless a regular client is perpetually late with their payments.

If the agency needs to send the letter, it must request payment and state the amount due, the due date, number of days the payment is overdue, and late charges if applicable. The initial letter may also include a more stern warning (but not a threat) that collection attempts will begin if payment is not received in a stated number of days.

Outsourcing all collection tasks to a debt collector is one way to handle past-due accounts. Use BuyerZone’s free request for collections price quotes service, and interview each provider you’re matched with to learn what their fees are and what the agency’s rate of successful collections is.