Tips and Strategies on Dealing with Collections

Yes, I used to be a collector. It was a job that I just ended up in at a very young age. My peers and I used to joke about how no one ever grows up saying, "When I grow up I want to call people about delinquent bills". Nonetheless, I spent 6 years on the phones and 14 years managing various collections, marketing, credit policy and other groups inside credit card companies and banks. I wanted to share some specific strategies that you can use when dealing with collectors.

1. Do not talk to the collector when they call you- All financial institutions either outsource these processes and/or run all outbound calls on autodialers. If you do pick up, you will hear a pause and then be connected to someone most likely in the Phillipines, India or some other low cost provider outside of the actual institution that issued your card. The other critical piece of not talking to them when they call is that you will not be prepared to have the discussion that you need to have. If you receive a call at work, immediately answer the phone id yourself and advise them that you can not take calls at this number. The majority of banks will take this verbal request and update your file. If your account happens to be at an agency, send them a letter to request no calls to work.

2. Call them back when it is convenient to talk on your terms. Plan out your call, do not go into this call blind. Banks have specific scripts and negotiation tools that they use to get you to commit to payment. If you commit to pay and don't , rest assured that they will throw it in your face at some point. If you are having financial difficulties, explain what is going on and ask for their help. Banks have payment arrangements that they can set you up on, even reduced or deferred interest plans. Do not think for a second that they will just offer this to you. There are negotiation matrices that the collectors are taught to follow.