Nov 16, 2011 Admin
Debt collection is a very dynamic, complex field and requires a disciplined approach. A collection manager’s primary responsibility is to prevent unnecessary losses while controlling costs and providing good customer service. Nowadays, a rising set back collectors are facing when attempting to collect on accounts that have defaulted is litigation. So what can you as a creditor do to support your collection agency partner in preventing their potential litigation problems?
One very important thing creditors should do to assist their partnering collection agency is take a better look at their creditor-consumer contracts. Unfortunately, often times creditor’s contracts don’t include specific stipulations regarding the collection process. The lack of these types of stipulations may not only bring damage to collector’s activity, but also makes the collectors more vulnerable and exposed to possible lawsuits and financial losses. Thus it’s imperative that creditors include detailed collection friendly provisions in their original contracts with the consumers to assist their collection agency partners.
By implementing collection friendly language associated with cost, fees and interests, consent requirements and delinquency definitions within the original contract between the creditor and the consumer, creditors can actually assist their collection agency partners in having better success.