What do you do when the check in the mail never arrives? Here are 5 commonly used debtor excuses and the action you can take to overcome them.
1. We never received or lost the bill
The fax machine and E-mail limit the validity of this excuse. Once you send them a second copy, call to make sure that it has been received. If they still don’t get your bill, try certified mail. If they don’t get that they are clearly no longer a client.
2. We put the check in the mail
Ask for the date it was mailed along with the check number and amount. Ask for a new check and request a copy be faxed to you. At worst, it will never hurt for you to know their bank information. You can also do checks over the phone using a variety of ‘Draft’ writing software packages or ask for a credit card. If the customer can’t do either, the problem is much more than a missing payment.
3. We have the money, but we have another problem
Get the specifics and follow up frequently. Don’t give enough leeway to make this your problem. You may not be considered as important to pay off as other bills, such as their rent. This usually means they are in default on multiple obligations. Your firm has to be a squeakier wheel to get the grease.
4. We have a temporary cash-flow issue
If the debtor can’t back that up with documentation it is wishful thinking to take their word at face value. Most companies are unaware of impending bankruptcy until their phone service is cut off. You owe it to yourself to take immediate action and get what you can.
5. We don’t have the money to pay
The customer has some money unless they have filed for bankruptcy. This just means that they don’t have enough money to pay all of their bills fully. In some cases, you can move up in the bill payment pecking order by sending a Termination Letter, stating that payment by a certain date is required to avoid litigation.
Giving the debtor more time is easy but often a strategy for not getting paid at all. You are already in dangerous waters. Act quickly and decisively. When in doubt, use a professional Debt Collection Agency to ensure fast and gainful results.
Executive Credit Management is a full-service
Debt Collection and
Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas:
Employment Screening,
Business Screening, and
Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.
