Ask TrueAccord: Using Debt Collection To Get Back At Customers?

By on June 22nd, 2014 in Industry Insights
TrueAccord Blog

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Should you use debt collection to get back at customers? Often, when you’re not paid, you feel like you want to get revenge. We get that. When a balance reached debt collection you’re usually angry, and may have had a few heated discussion with your late customers.

But, wait. The expectation that the Debt Collection Agency be the “bad cop” and harass your customer is exactly what gave the industry its bad reputation, and hurt the reputations of many businesses that use debt collection. It goes against reasonable behavior (yes, granted, so is not paying something you owe). Trying to find a better way is why we started TrueAccord in the first place.

What’s the alternative? If you’re working with us, let’s take a deep breath. If your customer is in our system, they’ll get messages with all the legally required disclaimers, they will probably get called, they might get reported. Their life is not a picnic. Let’s take a minute to think about your goals.¬†First, are you sure you did what you could to retain this customer, and get paid without escalation? Are you sure none of their claims has any merit? Are you willing to lose the customer over a disagreement?

Some customers are just irresponsible people. I’ll give you that. But many, more than you think, have a reason that they feel is legitimate for not paying. Losing them means losing their future business, and maybe other customers they could bring with them. Understanding them and settling if needed can be more beneficial. This is when our dispute resolution process kicks in. The way we see it, we’re more than just the “bad cop”. We’re your customer retention department, and we want to act in your best interest. Many times your best interest is very different than what you think it is when you submit that debt to us.

Should you use debt collection to get back at customers? Definitely not. Using us as your retention department, you should allow yourself to think long term and support your growth whenever possible. Beyond recovering money you’re owed, this is the long term added value that TrueAccord can give you.

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