In Focus Commercial Credit
Good cop or bad cop: some collection approaches
Whichever method you choose in collections, the goal of collected cash still remains the same
Krista T. Walsh President, KC Collect!
krista@kccollect.com
Professional collectors are always looking for new methods to use while trying to recover a debt. With these popular techniques, the professional collector can work as a part of a team, individually, or a combination of the two in order to deliver success in debt recovery.
The policeman This joint questioning is a collection tactic which plays a team of two collection agents against each other. Each team member takes an opposing approach to try to solidify payment from the debtor. When the collection agent takes a very
aggressive, sometimes threatening, approach, they are instantly dubbed the ‘bad cop’. This strong-armed approach creates a negative interaction between the debtor and agent and usually paves the way for the ‘good cop’. As the stage is set for the good cop, it is
now their turn to act sympathetically: appearing supportive, understanding, in general showing sympathy for the subject. The good cop will also defend the subject
from the bad cop. The subject may feel they can cooperate with the good cop out of trust or fear of the bad cop. The debtor may then seek to rectify the overdue account out of a bond, which was formed with the good cop, and means that they are now willing to cooperate.
The Chinese torturer In ancient times, it was believed that the Chinese used a method called ‘water torture’ to get results. The tactic used in obtaining results was credited to ongoing persistence.
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Catching a debtor off-guard, without making an appointment, leads them to believe you will stop at nothing to get this debt paid
This non-stop method is delivering the message that the debt is serious and you are not going to cease efforts until resolved. The key part of Chinese water torture
was that the water drop was made to be randomly timed. Thus, the collection agent must adjust their schedule so that the debtor does not know when the next contact will be made.
The vacuum-cleaner salesman This personal approach is usually used when most other attempts in making contact have
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failed. Catching a debtor off-guard, without making an appointment, leads them to believe you will stop at nothing to get this debt paid. Often the fear of a collection agent randomly visiting will result in payment.
The clergyman This soft approach is also known as ‘velvet touch’. This is used when trying to recover an account while keeping the relationship between the client and debtor. This non-aggressive method probes the
debtor to reveal the reason for the overdue account. Most times it requires the debtor to confide their financial situation to the collection agent and together devise a payment plan suitable for both parties. Once you have determined which approach will be the most effective with the debtor, you will be better prepared for any objections that the debtor may present while trying to repay their debt. Learning how to approach each debtor individually will dramatically increase your chances of collecting the debt. CCR
March 2019
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