Whether you are a small business that extends credit to its customers or a commercial debt collection agency, being in the business of attempting to extract payments from delinquent customers is more difficult today than it has ever been. There is a seemingly endless amount of legislation protecting the rights of debtors and an equally endless amount of free information educating them about these rights. On top of that, outstanding debts are on the rise, so we are dealing with more non-paying accounts than ever before and each of these debtors are being well-coached on how to avoid having to settle their balances.
Here are some of the reasons that outstanding debtors today are more difficult to deal with than ever before:
They Know Their Rights
One of the biggest advantages that debtors have gained in recent years is that many of them now fully understand the laws that are in place that protect them from having to deal with collection agents. Many debtors have learned that they can ask you not to call them at work and that you cannot talk to any of their friends or family about their debt.
They Know Time is a Factor
Many debtors today are also aware that there is a point where an outstanding debt is no longer collectable because too much time has elapsed. They believe that all they have to do is avoid talking to any debt collectors for long enough and the debt will no longer be valid.
They Don’t Care About Their Credit
While the increased use of credit reports was originally a strong motivation for debtors to settle outstanding debts and collection accounts, this is becoming less and less of a motivating factor. Many debtors simply don’t care about the status of their credit reports.
For some, this is because they have so many accounts in collections that settling the account you are trying to collect simply won’t make a difference. Other debtors are smart enough to realize that settled collection accounts will still appear as a negative on their credit reports.
They Know You’re Pressing
Because of today’s difficult economic environment, many debtors understand that their creditors are in a tough position where they need to collect from their outstanding accounts in order to survive. This gives the debtors a huge advantage in terms of negotiating favorable settlements, and many debtors are being coached to exploit this fact.
They Know You’re Weak
With all of the laws, timing, and economic factors on their side, today’s modern debtors understand that their creditors are operating from a weaker position than ever before. This further encourages them to push the envelope in terms of either ignoring your payment demands or trying to strong-arm you into an unfavorable settlement.
In order to make sure that you are getting the absolute most out of your collection efforts, you should always consult with a reputable debt collection agency. These agencies have extensive experience dealing with all of the disadvantages that have been thrown at honest creditors, and they know how to work within the system and still get results. The next time you are faced with a tough debt collection situation, don’t try to handle it on your own. Ask the best experts in the business for their help.