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The modern collection call

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  • 1. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com THE MODERN COLLECTION CALL Steve Hodgdon Modern Asset Management Steve@ModernAssetManagement.co m 415-596-2415
  • 2. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Why Listen to This Webinar Become happier and more effective in your communications with customers and in every day life. 2. Learn tools for successful collections and keep customers happy at the same time 1. 3. Take some stress out of your job 4. Collect more $$
  • 3. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Why Listen at all? • To learn • To connect and relate to another • Because we have 2 ears and only 1 mouth • To get what we want • Because reading a joke is never as funny as hearing one
  • 4. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com The Modern Collection Call
  • 5. The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com 3/8/2014 What kind of Collector are You? Old School New School
  • 6. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Required Compliance Statement • Your company requires all team members to obey all laws • • • • • and regulations. Fair Debt Collection Practices Act Telephone Consumer Protection Act Truth in Lending Act State collection, privacy and deceptive practices laws And 100 others • If you think you’re breaking the law you probably are!
  • 7. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Attributes of a Good Collector • Brave, unafraid of conflict • Wants to WIN • Great communicator • Hard working • Strong sense of right and wrong • Great detective • Good attention to detail • Genuinely likes people • Knows a lie when she hears it • No nonsense • Takes themselves seriously • Privacy is important. We don’t want to create gossip, harm or open ourselves
  • 8. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Step One – Make sure you are talking to the customer • Hello? – Mary? – Yes? – Mary Smith? – Yes? – • Verify information to confirm and update. Things change! • Set the tone – friendly and professional • .
  • 9. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Hello Ms. Smith. My name is Chuck Stevens from ABC Financial calling on a recorded line. I am calling about your past due loan. Before I go on, can you please verify that your address is 123 Main St? Yes, good. Thank you. Your work phone number is 555-555-1212? Yes? Thank you. Your social security number ends in 1234? Yes, Thank you.
  • 10. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Step Two – Identify yourself AGAIN and restate purpose of call • Continue building your professional tone • Refer to customer by Mr. or Ms. to show respect • We are not friends, this is business • Ms. Smith, my name is Chuck Stevens from ABC Financial and this is a collection call about your account with (mini miranda)… • No “how are you?”, “isn’t it a beautiful day” Stick to business here. You will warm up later.
  • 11. The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com 3/8/2014 Step Three – Demand Payment In Full • Ms. Smith, the balance due to $352.50. It’s been overdue since October 1st. Are you ready to pay this today? • Be urgent in tone. Make a firm demand. Don’t offer anything else yet. Then…
  • 12. The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com 3/8/2014 Step Four – Psychological Pause DON’T SAY AN YTH IN G UNTIL THE CUSTOMER TALKS. Be Patient… 10…
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  • 21. The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com 3/8/2014 1 1/2
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  • 24. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Uncomfortable? • 10 seconds is FOREVER! • Don’t worry. It hardly ever lasts that long! • Gives the customer a chance to catch up to you • Time to get his story straight • Time to think of a stall that you’ll
  • 25. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Step Five – LISTEN! Identify objections • Closed and open ended questions are your tools, not threats or abuse. • Probe for agreement that the Customer accepts responsibility, even if he can’t pay today.
  • 26. 3/8/2014 Now The Secret Sauce! • • • • • • Changes the game. Changes your view Takes the customer off defense Opens the door to solutions Makes your job easier 80% effective The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com
  • 27. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com WHAT HAPPENED? • WHAT HAPPENED? THIS IS THE CRITICAL QUESTION. • ALLOW THE CUSTOMER TO TELL YOU WHAT UNFORESEEN PROBLEM, WHATEVER REASON THEY HAD TO NOT PAY. TRULY HEAR THEM, WHETHER YOU BELIEVE THE EXCUSE OR NOT, WHETHER IT’S VALID TO YOU OR JUST A STALL. • “OH, SO YOU DIDN’T PAY BECAUSE THE CAR BROKE DOWN AND YOU COULDN’T GET TO WORK. IS THE CAR FIXED? (OR WHATEVER THE REASON FOR NOT PAYING WAS)”. • IF THEY TELL YOU WHAT HAPPENED, THEN THEY’RE HALF WAY TO PAYING.
  • 28. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com CAN YOU REALLY CONNECT? • Take a moment to let them know you actually heard them. “Oh, that must be difficult” “That’s a lot to shoulder all at once” “It sounds like it was temporary, that’s good” • This one action separates you from all the other collectors/landlords/utilities that they owe money. • We ALL owe somebody something. Don’t judge. Relate to the customer as a person and it’s likely they will do the same. Then you can
  • 29. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Going from Us versus Them to WE • Did we help you by lending you this money? What did you use it for? (overcomes the objection that the loan wasn’t of value to them) • Would you have paid this back on time if you could have? (who would say no?) • Are you still working at XXX? (Closed end question shows that you’re serious) • Do you think of yourself as an honest person? (A challenge for them to state their values)
  • 30. 3/8/2014 Step Six – The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Problem solve and Find a WIN/WIN solution • You promised to pay this when you borrowed the money/went to the hospital… Do you remember that? • Do you have a solution? • How do you want to fix this? • Can we deposit your payment today? No? When will your check clear? • How can we keep you in good standing with client? • Why isn’t this important to you?
  • 31. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Step Seven “Always Be Closing”. Get Buy in. Don’t give up! Ask at least 3 times in the call for what you want. • No to payment in full today? • No to payment today? • No to payment plan? • Back to the beginning. We must have missed something!
  • 32. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Suggested Responses • The cat, dog, uncle died. • Oh, that must have been hard. But, I don’t understand how that connects to your agreement to pay this back? • Straight Refusal • No? You won’t pay? Now hang on a minute! Didn’t you say…” (repeat back when they accepted responsibility) • No Money • That must be tough. You understood the terms when you borrowed the money, right? I want to help you avoid more interest. What CAN you do? • Next payday • What happened to this paycheck? Why will it be different in 2 weeks? How about an ACH for $xx.xx today and we will (offer incentive).
  • 33. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com When the answer is still “NO” • Then it’s reasonable to be firm and direct. “Mr. Harris, you signed a contract, you agreed that you owe this money, You said you want to do the right thing and be responsible and honest. We need to come to agreement that satisfies us both. We will use all the legal means at our disposal to recover the money Client lent you. Let’s work together rather than be enemies. It’s just going to go away.” • Your company employs tools to recover bad accounts. These may include small claims, collection attorneys, or selling accounts. What can you HONESTLY say? • Sometimes mystery is best. “I don’t know how
  • 34. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com What works for you? • You are a professional bill collector. • You know what life issues your customers have. • What works? • How quickly do you know there’s no hope? • How do you keep good will and still generate revenue? • Share ideas at --• “questions@modernassetmanagement.com” • Oh, how to tell if you might be breaking a law? • The Giggle Test…
  • 35. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Getting on the Same Page • When you have an agreement; partial payments or PIF, ask the customer to repeat back the agreement. “I want to make sure my notes are accurate…” • It’s important to hear the customer say AGAIN what they’re agreeing to. Most people are honest and want to do the right thing. Our job is to reinforce that they’re doing the right thing. • Restate the terms back to them. “Great, Mrs. Smith! You have been very nice to work with. If it’s OK, we’ll just send a reminder message/text/letter just before your next payment. You have my direct number is ANYTHING comes up. I’m here to help.”
  • 36. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Company specific policies • Specific training to your policies is inserted here. Examples: • ACH only • Special settlement offers • Debt Settlement • Payments on company website • Client special handling • Minimum payment terms
  • 37. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Step Eight – Document the call • “If its not in the notes, it didn’t happen” • Protect you, the company, yourself, and the customer. Take accurate notes that the next person will understand.
  • 38. 3/8/2014 The Modern Collection Call - All Rights Reserved steve@modernassetmanagement.com Wrap Up • Did you learn anything? • Try it! You might like it! • Don’t forget all the rules. You’re a professional. You know where the “line” is. • Be a problem solver • Enjoy your work. • Contact Steve@ModernAssetManagement.com

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