The ABC collection it your monney just ask for it

Three Easy Steps to In- House Collection 1.. Customize and implement an effective collection system The end result is increased cash flow AND customer retention!... Unfair Practices

BUS 204 Credit & Collections

Spring 2006, sjh.

The ABC’s of Collections

It’s your money…just ask for it!

(But follow the law)

Three Easy Steps to In- House Collection

1 Have a Written Credit Policy

2 Know Your Responsibility as

a Collector

3 Customize and implement an

effective collection system

The end result is increased cash

flow AND customer retention!

Choose your Methods

1 Cash

2 Check

3 Money Order/

Cashiers Check

4 C.O.D

5 Credit-card

6 Terms (in-house

credit)

If you are charging a

finance charge on the

unpaid balance

notification should be

printed on your

invoice/or statement.

Unfair Practices

 You MAY Not add any fees unless agreed

upon from the beginning of the debt.

 You may accept a post date check up to five

days in advance (if longer, you must notify the debtor3-10 days before cashing the

check)

 You may not initiate collect calls or

telegram fees.

Fair Debt Collection Practices Act

Know your rights and the consumer’s rights

The Act is intended to prohibit abusive

practices by debt collectors

The Act has specific details regarding

communications with the consumer and what

is considered harassment.

www.ftc.gov

www.lawdog.com

Fair Debt Collection Practices Act

Prohibited Practices:

• Early morning or late night calls ]

• Failure to cease communication upon

request

• Causing a telephone to ring continuously

• Communicating with consumers at their

place of employment

Fair Debt Collection Practices Act

Prohibited Practices:

• Contacting consumer known to be

represented by an attorney [6]

• Communicating with consumer after request

for validation

• Misrepresentation or deceit

• Publishing the consumer's name or address

Fair Debt Collection Practices Act

Prohibited Practices:

• Seeking unjustified amounts

• Threatening arrest or legal action

• Abusive language

• Communication with third parties

• Contact by embarrassing media

• Reporting false information on a consumer’s

credit report

Fair Debt Collection Practices Act

Required Conduct:

• Identify themselves and notify the consumer

• Give the name and address of the original

creditor

• Notify the consumer of their right to dispute

the debt

• Provide verification of the debt

• File a lawsuit in the proper venue

When Collecting Your Money

Follow the Four P’s

I be Professional

II Patient (it is a virtue, after all!)

III Polite and courteous

IV Persistent (within the law)

When & Why to Use a Collection

Agency?

laws and methods.

the total collected.

guy”

due you will lose 65 cents on

the dollar.