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Page 1: Collecting Debt

Chapter 7Persuasive Messages

Collection messages

Nelly R. EmersonBusiness Communications

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Collecting money for the products or services that you sell is critical to the successful

operation of a business.

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How to create a collection messages?

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Two goals of collection policy:

To collect the money that is owed.

To preserve goodwill with the customer.

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Collection policies

The policies must reflect state regulations and the criteria established by the Fair Debt Collection Practices Act of 1978.

Apply to spokenand written

message.

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Initial invoice that accompanies goods and services

should clearly state

What is owedWhen payment

is expected

Where to mail the check

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Example of an Initial Invoice

What is owed

Payment Instructions

Where to mail the check

Usually the due date is 30 days

from the invoice date.

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Collection messages are an integral part of company’s collection process, and they should:

o Follow federal and state collection regulations o Be sent at regular intervals o Use an appropriate organizational pattern and

message strategy for each collection stage.

When a debt has not been paid by the due date, systematic follow-up is necessary.

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Three stages of Collection messages

Final-stageIt is an ultimatum and is prepared in the direct pattern of

organization.

Middle-StageIt is a persuasive message.

Initial-StageA routine reminder written in the direct pattern.

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Initial- Stage

Assume that receiver intends to pay.

Send a reminder immediately after the payment deadline.

Send one or two friendly reminders.

Call the customer to determine the problem.

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Middle-Stage

Open with a positive or neutral statement.

Explain objectively without accusation.

Point out the benefits of complying.

Make courteous request for action.

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Final-Stage

Open with your course of action.Restate the details of the money owed and the

collection attempts made.Close with an assertive request for payment.

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Thank You!

Reference:

Brantley & Miller. Effective Communication for Colleges 11th edition.


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