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When Should Collection Efforts Cease?

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  • When Should Collection Efforts Cease?

    Most lenders cease initiating contact(calls/letters) with the debtor once collateral has been assigned out for repossession. Are there lenders that continue to contact the debtor throughout the recovery process?
    Kel

  • #2
    Originally posted by SeaKelly View Post
    Most lenders cease initiating contact(calls/letters) with the debtor once collateral has been assigned out for repossession. Are there lenders that continue to contact the debtor throughout the recovery process?
    Yes they do. Then Complain when you cant find the car, after they call in to rush you to a location that they just talked to the debtor and told them your coming.

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    • #3
      yes they do... in fact had a file not too long ago that GM Financial had called over 25 people in a small town looking for the debtor... the debtors whole family lives in that town then wonders why we cant pick it up!!!!

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      • #4
        When I worked in collections, once we had assigned the collateral to the recovery agent we ceased all calls/letters to the debtor. We didn't want to tip off the debtor that they were going to need really good walking shoes!!!
        Kel

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        • #5
          It's very frustrating we have an account that does this. If they would just allow us as recovery agents to do our job more units would be recovered.

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          • #6
            Hopfully once they hit the button to send the repo order over to the repo company.

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            • #7
              I have a client that will always tell the debtor that they are going on the repo list by "Certain Day" if payment is not paid. The best that I can figure by their calculations is that by doing that a larger percentage of those debtors that would be on that list pay; say 60% and then there is about 25% that believe it is a bluff to hurry up and make payment. Those get picked up and are not very happy. Then 10% hide out, stay with cousin or who ever until they can make payment and the remaining 5% say screw em and run like the wind never looking back. Chances are in their favor thus killing the agency. ie. usually not profitable work. Maybe brake even.
              "Add Value or Add NOTHING!!!"

              http://www.facebook.com/RecoverySolutionsNC

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