Article Abstract:
There are formal and informal methods of settling collections disputes. The most effective methods are informal, involving negotiations. Varieties of negotiation include courts, conciliation, mediation, collective bargaining, arbitration, administrative procedures, and 'good offices'. In order to negotiate, it is necessary to know the subject matter; objectives and specific issues; the positions and needs of both parties; and the strategies and tactics to achieve objectives. It is especially important to know how to listen and to avoid a 'hard-line' approach in collections, which invariably makes the situation worse. Examples of negotiator-customer conversations are given.
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Article Abstract:
The telephone is recognized as a positive, primary negotiation site for credit collection. The advantages are convenience, low costs, and quick connection. The main disadvantages are the absence of non-verbal communication and the negative effect of a call arriving at an improper time. Careful attention to the words and ideas in the spoken message can counterbalance the unavailable non-verbal aspects. The tone of voice, knowledge of hidden meanings and silences that cause anxiety, and the possible use of written key points also merit thought.
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Article Abstract:
Citicorp Retail services (CRS) has developed the 'Early Warning System' to detect potentially delinquent accounts. It is based on information from credit application scores and credit behavior or history scores. The purpose is to reveal problem accounts before they become seriously delinquent or convert to corporate bad debt. CRS also helps to determine which accounts require immediate attention by sorting good, indeterminate, and bad reports.
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