Collection Calls Or Letters - What's Better?

Collection Agency » Collection Calls Or Letters - What's Better?

There will always be two sides to a coin. If you own a business and you are going after a delinquent payer, you usually have two alternatives namely: sending a collection letter or giving them a call. Each option has its own pros and cons. What's essential is that you are conscious of the pros and cons so that you can make an informed decision as to which debt collection method would fit your business's requirements.

Initially, it is critical to define the distinction between collection calls and collection letters. Collection calls are when you employ your own staff to collect on delinquent payments. If your firm is still tiny, you can employ a firm that offers debt collection services for a minimal fee. If you actually want to go huge-scale, you can outsource to a debt collections company that is based overseas. A lot of firms are already hiring foreign workers because of the more affordable labor costs and the better outcomes that they get.

Collection letters are letters that you can send off to your buyers yourself or you can also hire an external organization to print and distribute collection letters to your consumers. Handing out collection letters is less expensive than collection call costs. There are two varieties of collection letters. There's the ordinary notification letter that will notify buyers of their late payments and the amount due. Then there's the action letter or final letter of demand that would inform your delinquent consumer that you will be taking action against them for non-payment of their debts.

Pros of Collection Calls:

- Actual time feedback is possible considering that a representative would be able to inform the delinquent consumer about the unpaid balance. The representative can also get an update if the payment was already made. Representatives from the debt collections agency might also have the power to make negotiations and create a win-win circumstance for each the client and the debtor. Immediate payment might result throughout the collection call.
- Collection Calls can be outsourced which means that it would not be too much of a monetary burden to the organization to employ an external company to deal with their debt collection problems.
- Perfect for organizations who want quicker collection results. Collection calls can reach several buyers per hour compared to collection letters which might be limited to the rate of distribution per day. Collection letters distributed might not necessarily be read. But collection calls are much quicker at informing clients of their unpaid balance.
- Follow up calls can be completed in case the debtor is willing to negotiate and willing to work on how best to pay off an existing debt.
- Has personalized service as opposed to collection letters that are impersonal and very enterprise-like.
 
Cons of Collection Calls:

- Some debt collection agencies could charge high fees.
- Unprofessional debt collectors might harass and intimidate the debtor to the extent that the debtor files legal action. There are instances that some debt collectors become too aggressive and call the debtor late at night or early in the morning which could tremendously alienate and inconvenience clients.
- The success of payment may depend on the phone debt collector's attitude and professionalism.

Pros of Collection Letters:

- Cheaper costs as it can be automated (sent by the business themselves) or can be distributed by means of a debt collections agency.
- Basic and direct. Less intimidating for customers.
- A much better option if the consumer is not at residence most of the time.
- Unprofessional debt collectors might harass and intimidate the debtor to the extent that the debtor files legal action. There are instances that some debt collectors grow to be too aggressive and call the debtor late at night or early in the morning which could greatly alienate and inconvenience clients.
- The good results of payment could depend on the telephone debt collector's attitude and professionalism.
 
Cons of Collection Letters:

- Slower rate of distribution.
- Might not be updated. Debt collection can't be updated real-time. Collection letters could come out late and not updated as payment has already been made
- When a debtor has had a change of address the letter can't reach the intended recipient
- Impersonal and company-like
- Will not encourage immediate payment as payment details can't be delivered over the phone.
- No way of truly knowing if the intended recipient received the collections letter.

We recommend letting a professional National Collection Agency handle your outstanding debts for the most effective and efficient no-upfront cost way to collect on monies owed to you.

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