When working with delinquent customers, there are several key principles that should remain non-negotiable, including these:
- Always communicate clearly and respectfully. Ambiguity can lead to misunderstandings or further disputes.
- Ensure that customers understand your company’s policies regarding payments, late fees, and consequences of non-payment. This provides a framework for discussions.
- Maintain a professional demeanor at all times. Hint:? Emotional responses can escalate tensions and hinder resolution.
- Keep accurate records of all communications, payment agreements reached, and actions taken. This ensures transparency and provides a reference for future discussions.
- Establish clear terms for any payment arrangements. Both parties should understand the expectations.
- Ensure that all discussions and actions comply with applicable regulations. Ethical practices protect both the customer and the creditor company’s reputation.
- Outline the potential consequences of continued non-payment, including legal action, account closure, or additional a reduction in the credit limit.
- Follow-Up Procedures: Establish a consistent process for follow-ups. Customers should be aware of when and how they can expect further communication regarding their account.
Excerpted from my book: Credit and Collection Handbook
