Commerical Debt FAQ's from Hunter Warfield

FAQ's

  • When should a customer be placed with a collection agency?

  • When to outsource an account to either an attorney or a collection agency is dependent upon a number of factors. Each one should play a significant part in your decision on when to place. Take a moment to review the presentation to determine at what point you are beginning to lose money by holding onto an account.

    Click here to hear James Neely, Vice President of Sales, share his thoughts on when a customer should be placed for collection.

  • With the abundance of debt collections agencies in the market today, how can a creditor tell one from another?

  • Click here to hear Steve Sobota, Founder and CEO, share his thoughts on the differences between agencies.

  • Why is agency licensing important?

  • Click here to hear Steve Sobota, Hunter Warfield Founder and CEO, discuss why agency licensing is important.

  • What are the factors that a creditor can control that impact agency revenue recovery?

  • Click here to hear James Neely, Vice President of Sales, share his thoughts on the factors that have the greatest impact on revenue recovery.

  • Is a debtor still a customer?

  • Click here to hear James Neely, Vice President of Sales, share his thoughts on when a customer should be placed for collection.

  • What are the risks involved when choosing a debt collection agency?

  • Click here to hear Warren Stoller, General Counsel, share his thoughts on the risks associated with the debt collections process.

  • How can you align the competing interests of finance and sales?

  • Click here to hear Todd Wahl, President, discuss why finance and sales working together is in everyone’s best interest.

  • How should I measure the success of my collection agency?

  • Click here to hear James Neely, Vice President of Sales, share his thoughts on measuring the success of a debt collections provider.

  • What should be done with a customer prior to placing with a collection agency?

  • There is no single correct answer to this question. If you discuss the topic with three different credit professionals, you will probably get three different well constructed answers. Although the answers are different, the concept will remain the same.

    Develop a process that begins when your customer is first given credit. That process should have some form of escalation as the account becomes more delinquent. The creditor’s primary goal is adherence to what they have proactively decided is the best practice for their business. When executed correctly, emotion no longer becomes the primary component of your decisions. We have found that most creditors know generally what they should do prior to placement. The real struggle comes in sticking to that policy.

  • Can I add collection fees to the balance placed with my collection agency?

  • The majority of professional debt collections agencies will only allow you to add fees if you can prove that the customer was aware of such charges prior to becoming delinquent with your company. Many times that proof is in the form of a signed credit application with a detailed explanation of what charges will be incurred when the account becomes past due.

    Adding excessive fees to an account can ultimately work against you when going to court. With the introduction of the educated buyer to the marketplace, your customers are now very aware of what rights they do and do not have with credit. It is important that someone representing your company adheres to what would stand in a court of law.