What NOT to Say to Delinquent Customers

By Michael C. Dennis. CPC, CCP, CBF, LCM, MBA

Navigating conversations with delinquent customers requires finesse, as what is left unsaid can be as crucial as the words spoken. Here are considerations on what not to say to a customer during a collection call:

• Avoid Apologizing for Disturbing:? Refrain from starting a collection call with an apology for disturbing the customer. The call is necessitated by unpaid obligations, and there's no need to apologize for seeking payment.
• Skip Questions on Received Documentation:? Avoid asking if the customer received the original invoice or subsequent documentation. Such questions can lead to delays in payment, as it provides an easy opportunity for the customer to respond negatively.
• Steer Clear of Specific Follow-Up Timing:? Never ask, "When would it be a good time for me to follow up?" as it can limit your ability to follow up as needed. Maintain flexibility in follow-up frequency and timing to effectively manage payment status.
• Differentiate Between Credit Line and Limit:? Be cautious with the term "credit limit," as it might impact sales. Instead, clarify that your company assigns credit lines. If asked about their credit limit, communicate the assigned credit line without using the term "limit."
• Avoid Specifics on Credit Denial Basis:? Refrain from specifying the data used to deny credit. For instance, avoid stating that a negative decision was based on a credit report or information from references. Maintain a general stance to uphold professionalism.
• Exercise Caution When Withdrawing Open-Account Terms:? Avoid declaring the withdrawal of open-account terms while a balance is outstanding. Doing so may remove the incentive for the customer to make a payment. Instead, link the reinstatement of terms to settling the account.
• Refrain from Unintended Threats or Unassured Promises:? Steer clear of making threats you don't intend to keep and promises you're uncertain about. Consistency in actions and communication builds trust and credibility in the collection process.
• Handle Broken Commitments Diplomatically:? When faced with broken payment commitments, avoid calling the customer a liar. Focus on understanding the reasons for the broken commitment and inquire about the circumstances that led to the non-payment.
• Avoid Blaming Other Creditors:? Refrain from attributing credit decisions to other creditor companies. Ensure that your credit decisions are presented as unilateral, maintaining the integrity of your company's independent decision-making process.

In summary, by being mindful of what Not to say, credit and collection professionals can navigate interactions with debtors more effectively, maintaining a balance between assertiveness and diplomacy in debt recovery efforts.

Source: My book "Happy Customers, Faster Cash"

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