What, Debt Collection during the Cov19 pandemic?
Given the pandemic and all the job losses, Jeffery Hartman, receivables management expert, has written an article on Forbes Financial Council about the challenges debt collectors are facing. He says we need to step back and re-examine our methods and practices, especially around aggressive collections.
Many debtors will lose their jobs and not be able to afford basic necessities so it’s not a moral decision to continue collections and use aggressive methods. And those methods will hurt the debt industry’s bottom line. According to Hartman, aggressive collections will deter debtors from paying and result in legal action even under a friendly administration.
He says collection agencies should focus on bringing in easy money by slowing down collections and reducing call volume. He suggests offering big discounts for lump sum payments, omnichannel options for debtors to pay and discounts for mobile and online payments.
In summary, Hartman says the debt collection industry should think long term and have a sustainable business model that includes best practices, cost effective and true profit. He says now is the time to re-examine our methods and practices and make smart business decisions that balance morality, legality and profitability.
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