Alabamans are known for their Southern charm.  Someone from Alabama could tell you the worst news you have ever heard, and you could not get mad at them, because their demeanor is so pleasant.  Of course, that is only one side of the story.  Not everyone’s charm works on every person.  You know that sweet old lady at church?  Her daughter-in-law thinks she’s a monster.  Even in Alabama, “charm” and “debt collection” rarely go together in the same sentence, and maybe that is the problem.  Perhaps debt collection laws and the balances in borrowers’ bank accounts are not the only factors that determine how successful your debt collection efforts.  Perhaps a little kindness can go a long way in helping creditors collect debts.  While Birmingham creditors’ rights lawyers cannot give you emotional intelligence or a megawatt smile, they can help you use your legal rights, in tandem with your people skills, to collect the debts owed to you.

You Can’t Squeeze Blood Out of a Turnip, but Maybe You Can Charm It Out

According to FinTech Futures, only 10 percent of debts pursued by third party collection agencies get paid.  In other words, the collection agency phone call scene is as frustrating and stressful for collection agency employees as it is for debtors.  Almost anyone who has struggled financially can recall a time when a caller from a collection agency tried to intimidate them into paying a debt, threatening garnishment of bank accounts and loss of future opportunities for credit.  In fact, so many borrowers have heard that spiel before, and it was so unpleasant, that the borrowers often start yelling and cursing as soon as they hear the words “collection agency.”

The bloggers at FinTech Futures recommend treating borrowers like individuals; get them to pay what they can by appealing to their personalities.  Some people hate the idea of unpaid obligations and will be happy to pay a small amount if they can see the big picture about how it can help them become debt free.  Tell that borrower that you understand that money is tight, but if they pay just ten dollars a month, the debt will be gone in two-and-a-half years.  Make small talk about the borrower’s hometown or about your pets, whatever you have in common with the borrower.  Being friendly and encouraging will not magically make money appear in people’s bank accounts.  It may, however, make them want to pay ten dollars out of their stimulus check toward the debt they owe you, instead of spending that money on a Chipotle burrito to take their minds off of the debt.  According to FinTech Futures, marketing departments invest resources in getting to know their audience, and collections departments should do the same.

Contact Us Today for Help

While you turn on the charm, a creditors’ rights lawyer can help ensure that you are exercising your legal rights to the fullest extent in pursuit of collection of debts.  Contact Cloud Willis & Ellis for a consultation on your case.