Posted by Sara on October 20, 2009, 1:12 pm, in reply to "To add....."
70.121.37.14
Lisa don't forget to threaten an IRS audit.
Isn't that what you used to do? Much of what you write is pure hogwash. You are entitled to get paid. But, your collection tactics - including your former threat of filing an IRS complaint - are plain overkill and show your stupidity.
First, collections are not based upon the date the loan is closed. Rather, collections are based upon the agreed upon date for payment. Unless otherwise agreed to prior, net 10 or 15 days is reasonable. But, whatever the due date, that is what drives the collection efforts.
1. Send your invoice with the due date clearly indicated. (Use the one you agreed to; otherwise, set one for Net 10 or Net 15 - or whatever you feel comfortable.)
2. On 10 days past the due date, send a reminder notice. (Have you ever been 10 days late? You will note that professional companies will send a reminder. They don't send you a certified mail threatening to contact the attorney general, etc.)
3. After 10 days past due, start calling. Be polite.
4. Collections efforts become progressive the later the payment is. (Remember, 60 days past the signing date might only 45 days late. No need to call SWAT.) Things like suspending the client's account at 30 days until paid and persistent - but professional phone calls - are what work.
5. Once the account is 60 days ***LATE*** is when you start thinking of alternative methods to collect your money.
6. At 90 days most companies are looking at severing relationships with delinquent accounts.
All of these letters some of you claim you write are idiotic. I would file legal action in small claims court before I spent the energy to write everyone and their brother.
One reason is that is looks terribly unprofessional. The other is that some collection activities bragged about here are often times suspicious and you might even be setting yourself up for being sued yourself.
(i.e. Did you once threaten to complain to the IRS and allege tax fraud? How absurd.)
Bottomline is you are entitled to be paid your fee in a timely manner. You are not entitled to do whatever you want to collect the money. You do know that you can't send Guido out to collect the money or break and arm or leg, right?
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