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RECOGNIZING THE DELINQUENT DEBTOR The longer you keep an account on the books, the more expensive it is for you. At some point, there will be debt that you will not be able to cost-effectively collect yourself. Look to a collector for help when you see any of the following symptoms of a delinquent debtor: 1. The new customer does not respond to the first reselling notices, maybe because he will not or cannot pay. Potential losses can be kept to a minimum by prompt referral to a collection agency. 2. Payment terms fail for no valid reason. Irresponsible debtors pay when and if they decide to. This group is responsible for 25% to 50% of the cost of collections. Your costs and potential losses are reduced by quick action. 3. The debtor makes repetitious, unfounded complaints. Professional collectors better handle such debtors. 4. The debtor denies responsibility. Without immediate professional help, these debts can be written off as total losses. 5. Delinquency coexists with serious marital difficulties. A professional collection agency can help by increasing the urgency of obtaining payment before the disappearance of one or both of the responsible parties. 6. Repeated delinquencies occur along with frequent changes of address and/or jobs. Ninety percent of these people become "skips," debtors who have moved without informing creditors or leaving a forwarding address. The wise creditor seeks help from a professional collector when they still know where this type of debtor is located, before he becomes a skip. 7. When there is obvious financial irresponsibility, little hope exists for voluntary payments. 8. There is an unauthorized transfer or disposal of goods delivered in a conditional sales contract. Only prompt professional assistance can make any recovery. 9. The delinquent debtor fails to keep in contact. Using a professional collector is your best hope to obtain any payment on the debt. Some situations need prompt attention in specialized fields. Department store credit managers are concerned about unauthorized charges. Physicians and hospital administrators have patients who do not understand that most insurance has a limit and that collection from an insurance company is a patient's responsibility. Creditors doing business in a large trade area may find debtors relying on distance to avoid payment. Turn to a professional collector to recover these bad debts. Extending Credit
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