Hector the Collector — Just How Far Should We Extend Empathy to a Debtor?

Hi Everyone,

It’s Hector and I hope you all had a real nice summer. Mine was very nice but went by way too fast. Fortunately, in between the office and the beach, your emails kept me busy.

Among the correspondence was one inquiry about how to deal with a debtor (owner of the company) who continues to assert that his health problems are preventing him from operating their business, which includes paying supplier invoices.

Often when the creditor calls, he is told the owner is on the other line, in a meeting, out of town on business, but is never told that he’s in the hospital or at home due to health problems. However, when the creditor is finally able to speak with the debtor, he immediately launches into what has been happening with his health. Between his heart, kidneys, and other medical conditions, he continues to explain how he is “barely hanging on.” After a while, the creditor has had some doubts to this poor health excuse.

The debtor and creditor reside in the same town and recently the creditor ran into the debtor as he was being wheeled into a golf range. Up on the second floor, from a distance, the creditor observed the debtor stand up from the wheelchair and with much difficulty, practice hitting golf balls. The creditor watched this scene for about 30 minutes until the debtor left, again being wheeled out of the facility.

Afterward, the creditor was feeling very confused. On one hand, he could see that the health condition of the debtor was compromised. However, on the other hand, if the debtor can afford to go to the golf range and hit some golf balls, then perhaps he can also afford to make some small payment on the significantly past due invoices.

I responded to the creditor that it was a lucky chance to have run into the debtor and see the debtor’s general condition for himself. Even without knowing all the details, it appears the debtor was being honest about his health problems. Unfortunately, some people have no qualms fabricating stories about having bad health conditions when they do not.

One might say that if you have a serious health condition, you shouldn’t be at the golf range. However, I know from personal experience that when I have had serious health issues, I still tried to get out of the house and be a little bit active. Not so much for my physical well-being but more for my mental stability.

Based on the encounter, I indicated that this was now an opportunity to take the collection of the past due balance into a new direction. I encouraged the creditor to call the debtor and start the conversation on the topic of golf, especially since they now have this activity in common. Then at the appropriate time, ask for payment towards the invoices. Having now established a little bit of a rapport may be enough for the debtor to make some payment amount on the invoices. ?

If payment is still not forthcoming, in this particular case I believe it’s time to put the empathy factor aside and seek out third-party collection support.

Hector

Hector the Collector is a credit collection and human resources advice column by Nancy Seiverd President CMI Credit Mediators Inc. Your thoughts and comments ([email protected]) are most welcome!

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