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November 16, 2007, Newsletter Issue #114: Sending Debt Collection Letters
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Tip of the Week
Be familiar with the debt collection letters the agency sends to your clients. The letters should be firm but not threatening. They are used simply to get the attention of your clients, and you will be amazed a the attention they get. The letter service also helps you determine if a client has no intention of paying you. Some debtors will call you immediately after receiving the first letter and offer to make payment arrangements. Before you send the debt to a collection agency, ask yourself how much you will collect without the assistance of a collection agency and how much their debt collection recovery rates will be with their assistance. Some agencies charge up to 50% of whatever they are able to collect, but that is still better than collecting nothing at all by yourself.
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