As the end of the year approaches, a question that many creditors grapple with is, Should I assign slow-pay/delinquent customers to collections around the holidays?”  The answer to that question should be a resounding “Yes.”

There are many reasons why it benefits a business, as well as its customers, to have past-due accounts placed in collections during the holiday season.

As with any time of year, the longer a business waits to assign any slow-pay/delinquent accounts to collections, the less likely those accounts will ultimately get paid.  The consumer will place a lower priority on resolving the debt the longer it stays past due without any contact other than a monthly “Balance Forward” notice.  Consumers may even condition themselves to think the creditor is comfortable with them not paying.

So, it is important to keep any unpaid debts in front of the consumer. 

After all, many consumers come into money around the holiday season.  Some receive it as gifts or bonuses, some receive their Flex Spending account dollars near the end of the year, and many consumers start making plans with what to do with their upcoming tax refund.

Greg Meyer

By assigning these accounts to collections and getting those consumers in contact with American Profit Recovery, these debts will become a priority.  A consumer may not necessarily be able to pay in full over the holiday season, but they can set up a payment plan.  If a consumer can make a partial payment now and set up a payment plan that allows them time to pay the debt off after the holiday season, everyone wins.

It is also important to remember that the professional debt collectors at American Profit Recovery are people too.  Like all consumers, they have financial obligations in their own lives.  Therefore, they understand the need to prioritize and budget their expenses.  Our collectors are also realistic.  They know that there are many expenses specific to the holiday season.  So, they can offer consumers payment options that help them feel good about paying off their debt, while still being able to enjoy their holiday season.  That kind of relief can only foster gratitude for our clients, as well as their return business.