It is a common misconception that a debt collector, whether with a collection agency or with a company collecting their own past due accounts will be more effective if they are hard nosed with the debtor.
That technique may work with a few people out there but for the most part and in this economy, you had better be nice and in a problem solving mode or your bill is going to the bottom of the pile to be paid.
What's one to do differently? Well, add persistance to your list of tools. In the past you may have contacted your accounts once a month, maybe twice and you were a little more firm with the terms of the debt on each call.
Consider calling more frequently, keeping the calls shorter and more relaxed in tone. After a while, your persistance will pay off in increased visibility. You can still manage the same number of accounts even though you are calling more often because you are spending less time on the phone.
Don't take my word for it, try it for two weeks to see if it helps and let me know how it worked out for you.
Wednesday, April 15, 2009
Friday, April 3, 2009
Medical accounts collections
By far, medical bills comprise the majority of accounts placed with collection agencies, not because the the doctors are heartless but because of the sheer volume of unpaid medical bills.
To give you an idea of how the average consumer prioritizes their medical debt, consider that a collection agency will receive a payment, not necessarily payment in full, on only 1 in 4 accounts placed. Put another way, 3 out of 4 medical accounts at a collection agency will never receive a payment at all. Would you buy a lottery ticket with those odds?
Here at JP&C, we have a debtor with an $80 medical bill placed in 2007. She buys a money order for $2 every month and sends it in to be applied to her debt. She has never responded to our phone calls or letters so we don't know if she is sending the $2 as a statement of displeasure or because that's all she can afford and wants to do the right thing.
I believe it's a statement and it's one that I admire and applaud.
To give you an idea of how the average consumer prioritizes their medical debt, consider that a collection agency will receive a payment, not necessarily payment in full, on only 1 in 4 accounts placed. Put another way, 3 out of 4 medical accounts at a collection agency will never receive a payment at all. Would you buy a lottery ticket with those odds?
Here at JP&C, we have a debtor with an $80 medical bill placed in 2007. She buys a money order for $2 every month and sends it in to be applied to her debt. She has never responded to our phone calls or letters so we don't know if she is sending the $2 as a statement of displeasure or because that's all she can afford and wants to do the right thing.
I believe it's a statement and it's one that I admire and applaud.
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