Collecting overdue payments isn’t an easy job, as any business owner or manager will tell you. Customer service is a critical part of keeping your customers happy — even the ones who are far behind on their bills. People who call or reach out to customers to get paid are often seen as the enemy, which makes the job that much more difficult.
We recently sat down with Carleigh, one of our team leads, to learn more about her work and what tips she would offer to AR teams and business managers.
Q: You’re a team lead. Tell us what that means.
A: A CRC team leader is someone who provides direction, instructions, and guidance to the rest of the team to help the company achieve our monthly goals. My job includes: 
- Training new hires.
- Obtaining and listening to team members’ feedback and ideas on processes.
- Monitoring and auditing team members to ensure that the training they are being provided is being put into use, and also to see if any additional training is needed.
- Assisting the Business Office Manager with various tasks, including managing the flow of day-to-day operations.
- Creating reports to update the company on the team’s progress.
- Analyzing current processes and develop strategies to improve them.
Q: What’s the most challenging part of your work?
A: The most difficult aspect of my job is achieving consistency. The collections industry is constantly changing and evolving. We have to stay up-to-date on all current regulations and make sure we are streamlining processes while staying compliant. This can be particularly stressful when challenging situations occur such as irate consumers, economic declines, and equipment/vendor issues.
Q: What do you love about it?
A: I love the operations aspect of the business. I am very analytical and enjoy creating new strategies and relaying those new strategies with instructions to the rest of the team. It’s especially rewarding when new strategies end up being very successful in streamlining the collections experience with our collectors and consumers.
Q: What would you like people to understand better about collections?
A: A common misconception of a collection agency is that we are the enemy. That is false. We are here to help resolve financial issues that can result in a better state of credit and financial peace of mind. The most common misconceptions I hear are:
- Collectors continually harass people who have no means off paying.
Reality: One of the first lessons a collector learns is that harassment of a consumer is both ineffective and illegal under the Fair Debt Collection Practices Act (FDCPA). Instead, collectors are trained to listen to what consumers say and determine if they actually have the resources to pay the past-due bill.
- Harsh and threatening collectors are the best collectors.
Reality: The best, most effective collectors are well-trained, sophisticated professionals who quickly determine what will motivate a consumer, and can communicate well with others. The best collectors work with people to get their accounts paid in a calm/understanding manner while practicing their best listening skills.
- Collectors don’t care about people; they just want to force people into bankruptcy.
Reality: This simply does not make sense. When people file for bankruptcy, their financial obligations to their creditors are usually wiped clean—and the credit grantor and collector receive very little or nothing in return. Collectors understand that people in financial trouble need guidance in settling their accounts without expensive litigation, and often need alternative payment arrangements that best fit their current financial situation. A collector’s business is to collect, but to do that, we often find ourselves counseling. That’s why we here, at Capital Recovery, call ourselves Financial Counselors, not Collectors.
Q: What are your top tips for companies out there trying to collect overdue payments?
A: Train your staff. Join your local State Collectors Association, in addition to the Association of Credit and Collection Professionals. Stay up to date on regulations including the FTC, CFPB, FDCPA, TCPA, etc.
And don’t get left behind! The industry is changing, and agencies need to change with it. Consumers have preferred methods of communication. Statistics show the percentage of people that open their mail is declining. Emails are becoming more popular, and soon federal regulations will allow us to send text messages. Know the laws and stay compliant!
If your team needs help collecting, contact us to get started.