Why relying on dignity and respect is essential in today’s debt collections

The process of debt collections has changed and continues to change for the better in recent times. And the industry as a whole has taken notice.

Diplomacy, listening, dignity and respect are no longer optional in today’s debt collection process. They are embraced and expected. When embedded in the culture of collections consistently, they strengthen the results and in turn benefit both business and consumer.

Modern times are not only craving for a more level experience in debt collections but provide an opportunity for a business to improve cash flow and the consumer to navigate their way out of debt.

The reality consumers are facing in today’s world

Many consumers who get behind on payments to your business are not doing so on purpose. Many consumers are overwhelmed by various life circumstances. That can include a job loss, reduction in hours, medical expenses, family emergencies, Unpaid veterinarian bills, or other economic shifts that cause many to fall behind.

Today’s professionally trained debt collector leads with empathy rather than assuming. When a collector indicates to a consumer that they can help them navigate their situation, that interaction most often changes quickly.

Defense mechanisms decrease.

Healthy communication increases.

Consumer and collector begin to trust each other.

Respectfully approaching a consumer with an open mind begins the process of creating solutions for the overdue balance and leads to cooperation.

Respectful collection procedures will improve outcomes and results

Changing how consumers view collection agencies is mission-critical today. And those consumers are much more likely to pick up the phone, return messages and engage with a debt collector when they do not feel threatened or judged. When they are listened to and understood, results happen.

Diplomacy can lower those barriers, making it easier to have a rational and productive conversation about the debt.

Diplomacy increases engagement and collection results, which are a benefit to your business.

Dignity and respect build trust, which is a powerful motivator for consumers. They want to feel heard and treated fairly. When a consumer can trust a debt collector, they’re more likely to honor agreed payment plans, communicate proactively if their circumstances change and feel better about meeting their obligations.

Diplomatic collection agencies protect the brand and reputation of your business

Most businesses want to keep their customers, even after debt collection activity. And that’s what being nice does. It paves the way to keep your customers.

A debt collector is often the last point of contact between a consumer and a brand. But it doesn’t have to be that way. How that conversation is handled can shape the future of business, good or bad.

Respectful debt collections accomplishes a few things.

Preserving customer relationships.

Reputation management in the community.

Minimizing negative reviews, such as a social media backlash.

When we work in medical or dental collections, or serving the debt collection needs for funeral homes, dignity and respect are must-haves.

Respectful debt collections align with today’s expectations

Today, consumers and businesses expect and desire transparency, professional conduct and a human touch. And regulators, whether state or federal expect fairness and ethical conduct. Having diplomacy and respect embedded in the culture of a collection agency helps meet those goals.

Why do nice and respectful debt collection strategies work?

First, let’s not confuse being nice and respectful with ambiguity. Being firm and respectful can exist in the same conversation and professional debt collectors who are effective and produce results combine several things.

They lay out clear expectations together with the consumer.

Engage in honest communication to foster dialogue.

They solve problems and develop flexible solutions.

Build trust so the consumer feels safe in discussing their situation.

Achieving two core results such as getting the bill paid in helping the business keep the customer come as a result of diplomacy, tact, dignity and respect.