Ask-Doug Seminars, Inc
Accounts Receivable Collections

Learn the answers to these practical questions

Checks

• When you get a NSF check, who should you call first, the customer or their bank?
  

• Should you turn the check over to the police?
  
• How can you still get money from the bank even if the check is stamped "Do Not Redeposit"
  
• How can you get the bank to watch the account and process the check when a deposit is made?
  
• How long is a check good for?
  
• The check is for $500, but the customer only has $480 in their account. How can you get the $480?
  
• Can you take a post dated check?
  
• The customer used a check on a closed account. Now what?
  
• The customer stopped payment on the check. What do you do?

 
Bankruptcies

• What do you need to do when you get a notice of filing?
  

• Do you need to attend the meeting of creditors?
  
• Does it make a difference if they lied on their credit application?
  
• What if you're not listed in their bankruptcy?
  
• What if the customer purchased the goods or services just before going bankrupt?
  
• The customer made a payment just before they went bankrupt, and now they want it back. When do you have to give it back?
  
• Can you accept a payment from the customer after the bankruptcy is discharged?
  
• A person files a Chapter 7 bankruptcy. They're now prohibited going bankrupt for several years. Right? Wrong! Find out how clever debtors get around this rule.
  
• What's the difference between a discharge and a dismissal?
  
• What is a reaffirmation agreement? Why should you ask for one?

 
Skip tracing (finding "missing persons")

• How can you quickly and cheaply find a new address when someone moves and forgets to tell you?
  

• How can you get a change of address from the customer's credit card company?
  
• What's the best source of personal information on a customer?
  
• How can you locate someone who's in the military?

 
Collection agencies

• Are collection agencies worth the cost?
  

• Why is a 33% commission rate better than 25%?
  
• What agencies should you avoid?
  
• You can have the customer pay the collection agency fees if you can answer "yes" to 4 questions. Learn what these questions are.
  
• What is the average success rate of agencies?
  
• What can a collection agency do that you can't do?
  
• Should you use a lawyer instead of a collection agency?

 
Divorce

• The customer signed for the service, but the divorce decree says the spouse is supposed to pay the bill. Who do you go after?
  

• When do you need to see a copy of the divorce decree?

 
Credit Reports

• Should you run a credit report on your new customers?
  

• How do you get a credit report?
  
• What kind of information is on a credit report?
  
• How do you get a report on a business?
  
• When should you get a credit report on an existing customer?

 
Making it easy for customers to pay you or contact you

• Can you name 15 ways? You'll hear at least that many. And some of these make your work easier too!
  

• Can you give three ways to use credit cards, besides payment at time of sale or service?

 
Prioritizing accounts for collection

• Which accounts should be collected first? Oldest or newest? Smallest or largest? Easiest or hardest?
  

• Learn the secret to collecting twice as many accounts in half the time.

 
What you should do before you begin to collect an account?

• If you don't do Step 1, you could embarrass yourself.

 
Letters

• When is it better to write?
  

• What does an effective collection letter say?
  
• Why shouldn't a collection letter be included with the statement?
  
• Do stickers really work on statements? How about hand written notes?
  
• Can you write "FINAL DEMAND NOTICE" on the outside of the envelope?
  
• Should you use certified mail?
  
• How do you get people to open your letters?

 
Telephone

• When should you call instead of write?
  

• Can you call your customers at their job?
  
• What should you say when you leave a message? What should you NOT say?
  
• If someone (other than the customer) asks "what's this regarding?" what do you say?
  
• What questions are you allowed to ask third parties?
  
• What if a child answers the phone?
  
• What do you do with callers that yell at you? Or start crying? Or use obscene language?
  
• When you hang up the phone, you're not done. Why?

 
Adult Children

• A college student away from home comes in for treatment. She is covered by her parent's insurance. She says her folks will pay the balance. Who is responsible for the account? What should you do?

 
Insurance

• What do you do when the insurance company sends the check to the patient, and they spend the money on a vacation?

 
Death

• What's the easiest thing to do to collect an account after a customer dies? If that doesn't work, what should you do?

 
Fair Credit Billing Act

• If you charge finance charges, how much time must you give your customers to pay before imposing the charge?
  

• How often must you review and try to refund credit balances?
  
• How often are you required to notify your customers their rights regarding correction of billing errors?