In light of the ongoing pandemic and its resulting massive unemployment, Jeffery Hartman, an expert in the receivables management industry, has published an article on Forbes Financial Council discussing the challenges faced by debt collectors. The author emphasizes that the industry must take a step back and re-evaluate its methods and practices, especially in regard to using aggressive collection tactics.
With the likelihood of many debtors losing their jobs and struggling to afford basic necessities, the author argues that it may not be a morally sound decision to continue collections and use aggressive methods. Furthermore, these methods may have a negative impact on the debt industry's finances. According to Hartman, aggressive collections could deter debtors from paying and result in legal action, even under a favorable government administration.
The author suggests that collection groups should focus on bringing in easier money by slowing down collections and reducing call volume. He proposes offering substantial discounts for lump-sum payments, utilizing omnichannel options for debtors to provide payments, and considering discounts for mobile and online payment options.
In conclusion, Hartman advises the debt collection industry to think long-term and ensure they have a sustainable business model that takes into account best practices, cost-effectiveness, and true profit. The author believes that now is the time for the industry to re-evaluate its methods and practices and make sound business decisions that balance morality, legality, and profitability.