With the exception of occasionally having those little turtles that were later banned because of salmonella, I never had pets growing up. But I really wanted a dog.
So, when I was in high school, I saw a sign announcing that one of the local summer church festivals would be giving away puppies. Puppies! This was my chance.
I asked my Mom and Dad if I could try to get one.
They assumed they were giving away one puppy.
Since my parents were discussing it amongst themselves, I decided there was no reason to provide any additional information.
I wasn’t exactly lying. I was simply being… strategically selective with the details.
The truth was that they were giving away puppies to anyone who could get a ping-pong ball into a little fishbowl.
My neighborhood friends knew how badly I wanted a puppy, so they pooled their money and came up with a plan. They would find the person with the best chance of making the shot and send them to the fishbowl.
After all, they only needed one lucky shot. And somehow, that lucky shot happened.
I came home with my new best friend.
Looking back, that experience taught me something that applies surprisingly well to debt collection: you need to understand the whole picture before deciding what to do next.
My parents heard, “They’re giving away a puppy.” What they didn’t hear was, “There is a contest, the neighborhood has formed a puppy-acquisition team, money has been pooled, and there is a very real possibility that a dog is coming home with me.”
In collections, we can sometimes make the same mistake.
We hear one piece of information and immediately start thinking about the solution.
“I can’t pay.”
“There isn’t enough money in the estate.”
“I need more time.”
“That’s all I can afford.”
Those statements are important—but they may be just the beginning of the conversation.
Don’t stop at the ping-pong ball.
Ask questions. Understand the circumstances. Look at the account history. Consider what has already happened, what options may be available, and what information might change the appropriate collection strategy.
For an estate, for example, “There isn’t enough money” may be an opportunity to understand the estate’s assets, liabilities, expenses, and overall financial picture before determining what resolution options may be appropriate.
For a consumer experiencing financial difficulty, understanding whether the situation is temporary or ongoing can help determine what options may make sense.
The goal isn’t to interrogate the person or make the conversation more complicated than it needs to be.
It’s about listening beyond the first answer and asking the right follow-up questions.
Sometimes the most important information is hiding just behind that first response. My parents learned that lesson when I walked through the door with a puppy.
They probably would have asked a few more questions if they had known there was a fishbowl involved.
And that’s the lesson:
Don’t stop at the ping-pong ball.
Before deciding what to do next, make sure you understand the whole fishbowl.
Author: Bev Evancic
Bev.Evancic@ResourceManagement.com
Bev Evancic is a Senior Vice President at Resource Management Services, Inc. Prior to employment at RMS, Bev worked as the Collection and Recovery Manager at AT&T Universal Card, Citi, and Federated Department Stores. Bev started in the collection industry as a collector at an upscale clothing store in Cincinnati, Ohio. As a returned check and private label credit card collector, Bev gained a basic understanding of the collection industry that has not changed with the introduction of regulations. Her collection philosophy begins with the idea that businesses and customers benefit from preserving the customer relationship. First, collectors need to attempt to contact customers when it is convenient for the customer to discuss his/her financial condition and willingness/ability to pay. Second, you never collect money by intimidating or threatening customers. Third, businesses must make sure the debt is valid.
She has managed all phases of collection and recovery operations, including automated dialer units, bankruptcy, and legal units, skip tracing units, internal collections, outside collection agency networks, and Consumer Credit Counseling. As a Consultant for Resource Management Services, Inc., Bev has spearheaded collection and recovery best practices reviews for many top credit grantors. Her articles on dialer operations, agency management and bankruptcy best practices have been widely publicized.
She is well known and regarded as a specialty expert in the areas of: Repossession, Bankruptcy, Estate, Litigation, as well as Pre- and Post- Charge-off. Prior to joining Resource Management Services, Inc. in 1995, Bev managed the Recovery Department for AT&T Universal Card Services where she developed the bankruptcy, probate, internal and litigation processes.
She is the author of “Recovery Management: Collecting the Uncollectible Account.
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