Mediate, Don't Litigate Your Delinquent Accounts!
Tuesday, September 23, 2014
Why don’t customers just pay what they owe?
Most accounts are overdue because of life circumstances and hard times, not out of any intent to permanently avoid payment. Many folks experiencing these difficulties are embarrassed that they have fallen behind, and avoid the situation altogether.
Can’t I just sue them?
You can, but hard ball collection tactics such as lawyer threats, intimidation, litigation and debt collection firms often increase customer resistance resulting in fewer collections on delinquent accounts and a permanent loss of customers. And while you may “win” in court by obtaining a judgment, collecting on that judgment is a whole different ball game.
What other choice do I have?
Why not try mediation? A trained mediator will approach debtors in a friendly, respectful way to work out the details of a payment plan that the customer can stick to. Demonstrate good customer service, even in your collection policies.
Does it work?
While no system is 100% effective in collecting on delinquent accounts, our Credit Mediation Program has demonstrated a distinguished track record:
- High settlement rate
- High compliance rate
- Your customers remain customers
- Your employees are freed up for more pleasant and productive work