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American Agencies News The Magic of 3rd Party Collections THE PRIVACY OF MAIL IS LESS EMBARRASSING THAN A PERSONAL PHONE CALL. Although many businesses believe that personal contact is more comfortable, for a debtor the opposite is true. The only reason personal contact would be preferred by a debtor is when it is viewed as an opportunity to delay payment. FIRST PARTY OUTGOING PHONE CALLS PRODUCE EXCUSES AND PROMISES.“I have worked with Phone calls are often viewed as less critical to debtors who feel they can “wait for the nextAmerican Agencies for the call” to make a payment. When debtors realize a creditor is willing to make multiple callspast 15 years. They have before they are placed with a collection agency they will use that perceived “grace period” toprovided our organization stall payment (conditioning you) as long as they can.with great collectionservices.” PERSONAL CONTACT RESULTS IN REPEATED DELINQUENCIES. Debtors remember your collection process. When they know you make several calls before placement with a“One area in which collection agency they will take advantage of you. Using third party impact early willAmerican Agencies condition and train them to expect added costs and collection agency activity – which willperforms above average is lower the number of repetitive delinquencies.in their customer service. Irate their skills as THIRD PARTY WRITTEN DEMANDS PRODUCE HIGHER RECOVERY RATES. Whenexcellent.” debtors realize they must take action to avoid legal implications and/or additional costs, a debt moves up their payment priority list. Collection agency demands have a greater impact providing higher results than first party internal efforts. For more information, THIRD PARTY DEMANDS ARE PAID BEFORE FIRST PARTY REQUESTS. The majority contact us at: of the time debtors owe more than one entity (or they would be paying you). When they receive demands from a third party the written ones are seen as more urgent and most (866) 961-9600 often are the first ones paid. Or visit our website at: WRITTEN DEMANDS PROVIDE A LASTING VISIBLE IMPACT (REMINDER). Phone conversations lose their impact and are usually forgotten. www.americanagencies.com THIRD PARTY INVOLVEMENT TURNS THE TABLE. Causing the debtor to initiate contact with you in order to negotiate payment puts you in a better position. When they call you they are in a different frame of mind (calling to negotiate) than when you are chasing them. Because business initiated phone contact is seen as more dignified and comfortable (though it is not), your tendency is to be more lenient when you hear the many excuses they can use to stall payment -- extending payment arrangements instead of securing payment. TODAY’S TECHNOLOGY IS WORKING AGAINST YOU. With the prolific use of caller ID, voice mail, and answering machines it’s too easy for debtors to avoid your calls, causing repeated call backs and wasting your time. Studies show that the “get through” rate to debtors by phone is about 30% versus the dependability of the U.S. Post Office at over 99%. AMERICAN COLLECTORS ASSOCIATION RESEARCH. Studies by the ACA reveal that, after 2 or 3 personal contacts, “Internal Effectiveness” drops off significantly. After “Internal Effectiveness” drops off, third party involvement is the only effective solution.