Chapter 11
Increasing Intensity to Achieve Collection
In This Chapter
Obtaining results from your demands to debtors
Using postdated checks and electronic transfers
Understanding special circumstances affecting collections
You’ve reached a point where your collection efforts haven’t produced the results you need. Perhaps a few payments were made, but your debtor still has a balance due. Now what? You turn to additional tools, such as making negative reports to credit bureaus, exercising your rights under liens you’ve negotiated, or getting postdated checks or authorization for future electronic transfers of money.
In this chapter you find out how to turn up the pressure on your debtor, and you discover the limits of what you can do. Particularly when you’re dealing with consumer debtors, you must avoid any mistakes that could jeopardize collections or even trigger a lawsuit against you. We show you when to draw a line in the sand — the point in the collections process at which you either write off the debt or proceed to litigation.
Keeping a Payment Plan on Track
When your debtor is short of cash and can’t pay off the entire debt at once, setting up a payment plan makes a lot of sense. We detail this process in Chapter 10. But after you have the payment plan in hand, how do you keep the payments coming in?
Reminding your debtor to honor the deal
After you set up a plan where the debtor is to pay off the account in installments, you should closely monitor the account, watching ...
