Forbes.com published an article today, called A Hatchet Job on Debt Collectors, which examines a previous post on the same site which painted a very negative image of the collection industry. As Michael Klozotsky, the article of the response, explains, many of the views portrayed in this other article were based on unreliable (or just plain wrong) information and perfectly capture the mindset of many authors writing about debt collectors today. As Klozotsky explains, many have been driven to believe that collection agencies (and indeed, the entire accounts receivable collections industry) are all inherently ‘evil’ and will sacrifice morality to maximize profits.
This negative view of the collection industry is becoming a major problem for collection agencies and similar businesses. Despite the fact that many collection agencies, including The Kaplan Group, put forth every effort possible to ensure that their collectors employ only legal, ethical collection methods, the entire industry is portrayed as “the bad guy.”
We hope that more articles like this one will begin to appear in the news, as they can shed some light on the true nature of the ARM (accounts receivable management) industry and show that not all debt collectors are evil.

Also, be sure to check out our newest article, Collection Agencies And Deductions And Charge Backs, 4 of 5. This article, the fourth in our latest five-article series, delves further into how vendors can increase profits by eliminating unnecessary deductions taken by their customers.
Below is a brief description of the article:
Collection agencies may be able to help you with customers who are abusing their use of deductions. Nowadays, deductions plague many companies, and are such an overwhelming issue that paralysis can set in. Aside from tracking and understanding the deductions issue, and taking action after they have already occurred, a more proactive approach to prevent deductions from happening can be very beneficial. This is the fourth article in a five part series about customer deductions, and it will focus on prevention of deductions.

Thinkmoney.com recently published an article called What is statute-barred debt? which, as the title suggests, explains what statute-barred debt is and when these laws apply to a debt. As the article explains, a debt becomes statute-barred if the creditor fails to contact the debtor regarding payment of the debt within a specific period of time. According to the article, debts can become statute-barred after either six or twelve years, depending on the type of debt (unsecured versus mortgages, secured loans, etc.). The article sheds light on a law many people have zero knowledge of, one of many such laws and regulations governing the accounts receivable collections industry. Debt collectors must be very well-trained in all laws pertaining to their collection efforts in order to provide the best service for their clients. Attempting to collect on a debt that is not legally enforceable (or for which laws prohibit collection efforts from being employed to collect the debt) can be incredibly costly and embarrassing, and also hurts the clients of the collection agency.
At The Kaplan Group, all of our collectors are extensively trained in the laws pertaining to commercial collections to ensure that any debts we attempt to collect are legally owed to our clients before we begin any collection effort. We strive to do all that we can to provide the most professional service possible for our clients.

Also, be sure to check out our newest article, called Collection Agencies and Deductions and Charge Backs (Article 3 of 5).
Here’s a short description of the article:
If your company is dealing with increasing customer deductions, hiring collection agencies may provide some debt collection relief to the credit department. Targeting problem customers who are abusing the use of deductions can be helpful for any company. Companies need to have a way of measuring the magnitude of deductions taken by its customers. Companies also need to be able to determine what types of deductions are problems so that internal issues can be identified and improvements made. This is the third article in a five part series, and will focus on keeping track of deductions and looking for patterns.

CreditCards.com recently reported that the Consumer Financial Protection Bureau (CFPB) has released new rules which establish which companies (based on company size) they will monitor in a new effort to protect the rights of debtors. Their article, called Consumer watchdog proposes rules for debt collectors, credit bureaus, explains that these regulations apply to debt collection agencies and credit bureaus, and represent the first federal oversight on non-banking companies. The CFPB is a fairly new agency, which was created in July 2011 and will allow the government to monitor more closely and directly the actions of debt collectors, among other groups.
The fact that this agency even needs to exist in the first place troubles us here at The Kaplan Group. There is no need for debt collectors to go to illegal lengths to force debtors to pay their debts; we prove our clients each and every day that debt collection can be done very effectively within the boundaries of the law.

Also, be sure to check out the newest article in our 5-part series, called Collection Agencies And Deductions And Charge Backs – 2 Of 5.
Below is a brief description of the article:
With more and more retailers using deductions as a way to maximize purchasing power, hiring collection agencies may be one way to help control this problem. The bigger the retailer, the more deductions are taken. If your customer base contains these mega companies, you may be wondering what to do to get a handle on these deductions. How can a company identify and quantify its deductions problem? This is the subject of this second article in a series of five about deductions and charge backs.

The online publication insideARM.com recently published an article which explains some of the challenges of collecting from members of the armed forces who owe debts incurred either before or during their deployment. The article, called Collecting from Military Service Members Requires Unique Sensitivity, provides some rare insight into a growing area of debt collection, as more and more US soldiers return from the Middle East to debts amassed before serving or while they were deployed. As the article explains, members of the armed forces merit the utmost respect and the most professional collection process possible, and extra care must be taken when dealing with these debts. The author, who requested insideARM kept his name and company anonymous, gives some very simple but important pointers on how collection agencies should go about collecting on these kinds of debt, if they choose to make a collection effort.
We love reading articles like this one here at The Kaplan Group, as we always strive to maintain the most professional collection methods possible. While this article doesn’t relate as much to commercial collections as it does to other types of collection, we hope that this will help agencies who do work

Also, be sure to read our new article – Collection Agencies And Customer Satisfaction Survey, which will teach you to write your own customer satisfaction survey for the internal customers of your business.

Below is a brief description of the article:
When developing your internal customer satisfaction survey, you should be collecting data from your internal customers relative to the credit department’s performance in three key areas: technical expertise (i.e. is the credit department performing satisfactorily in managing, reporting and controlling credit risk, successfully collecting from delinquent external customers, applying cash remittances quickly and accurately, and resolving customer deductions and cash discounts), performance of tasks within the bigger context of the organization as a whole, and the credit department’s understanding of the industry, economy and technology.

Thedebtcollectiondrill.com recently published a blog article which emphasizes the special care that must be taken when collecting on time-barred debts (debts for which the statute of limitations has already expired). The post, called How to Collect on Time-Barred Debt highlights the states/cities which have laws prohibiting collection efforts on these time-barred debts or have imposed specific regulations which must be followed in any such collection matters. It also provides advice on how a time-barred debt should be prepared before collection efforts begin, to avoid the costly repercussions of collecting on debt illegally.
At The Kaplan Group, we always make sure before we begin any collection effort that the debt is legally owed by the debtor to our client, and that there are no laws prohibiting collection efforts on the debt. We make sure our collectors are well-trained in all laws pertaining to commercial collections so we can provide the absolute best service for our clients.

Also, be sure to read our newest article – Collection Agencies And Internal Customer Satisfaction. Below is a brief description of the article:

This is the third article in a four part series of articles which will look at the credit department in the company setting and its need to view the other internal departments it deals with as internal customers. Once the customers and their functions and relationships are understood, the next step is to clarify the needs and requirements of these customers as they relate to the credit department. There are many valid ways to gain this critical understanding of the internal customers. Read this article to learn about these data collection techniques.

Therepublic.com (based in Columbus, Indiana) published an interesting article in which their Debt Adviser responded to three different questions regarding bank account garnishments as a result of a bank levy. The article, called Can collectors get bank account money? answers questions about protection for “automatically deposited federal benefits” (Social Security, disability, etc.) in the event that a collection agency secures a levy on your bank account, as well as whether a collection agency can, after obtaining a levy against a person, access/garnish an account that is not held in their name. There are a handful of interesting insights for debtors who have questions regarding bank levies and how they can affect their bank accounts.

Also, be sure to check out our newest article, called Collection Agencies And Credit Department Internal Customers

Below is a brief description of the article:
Today’s article will explore the importance of identifying the credit department’s internal customers, and understanding the functions and interrelationships of its customers. Once a collection agency enters the picture, debt collectors also must understand these internal customers and how they function within the company. For a collection agency to optimize results for its clients, it must be able to provide all necessary information to the credit department, which is then disseminated out to internal customers. In addition, the credit agency can utilize information from the credit department and its internal customers to further motivate debtors to make payments.

I read an interesting article today, called Localities, Strapped For Cash, Turn to Collections. The article talks about how one ex-congressman is now working in Chicago as a debt collector, helping in an effort by the city to collect on millions of dollars owed for parking tickets and other citations. This article shows the important role collection agencies play in the workings of city governments, not only in the world of corporations and small businesses. Just as the city of Chicago is taking advantage of debt collection services, many businesses turn to collection agencies every day to help recoup money owed to them. Here at The Kaplan Group, that is what we strive to do each and every day – get the money owed to our clients so their businesses can continue to prosper.

To read the article mentioned above, please click here

Also, be sure to check out the newest article posted at our site today, called Collection Agencies Working For Credit Departments

Below is a brief description of the article:
It is common for Credit Departments to hire collection agencies to assist them in their collection efforts. If a credit department’s own collection efforts are unsuccessful, this can be a positive next step. It is important to be aware that departments within companies have internal as well as external customers. This is especially true for the credit department. Agencies when acting as collectors for credit departments must also be well aware of these internal and external customers. How collection agencies deal with debtors (external customers of the clients) can affect many different internal customers at their clients’ companies.

Here’s an interesting article I read today, called What Motivates Call Center Professionals? Not What Management Thinks. It’s a pretty interesting look at how managers misjudge which incentives truly motivate their employees, and which aren’t as effective as one might expect. Here at The Kaplan Group we try to take the suggestions we find in articles like this one to heart, ensuring that our employees are always motivated to put their best efforts forth in all aspects of the collection process. This means better results and more money collected for our clients.

To read the article, click here

Also, please take a look at today’s newest article, called Delegation Strategies for Collection Agencies.
Here’s a brief description of the article:
Good management skills help collection agencies and companies in general to stay competitive and successful. The term “management skills” is a broad category which includes motivating, disciplining as well as delegation. A really good credit manager knows how to delegate responsibility to his or her debt collectors. The reality is that managers who delegate well do their own job better and their collectors are happier because they feel valued and trusted to do their job to the best of their abilities.

So one of the largest collection agencies in the world just settled with 19 states over violating the FDCPA.   The penalty is almost $1 million.  Their actions tarnish the entire industry.  One thing our clients don’t have to worry about – we don’t break the law and we don’t get bad publicity for ourselves or our clients.  If you want a room full of $12 an hour telecollectors chasing your money, then this punished firm might be a good choice for you.  If you want very experienced collectors taking a custom approach to each claim, then we are the right collection agency for you.

You can find the full article  here

Also, be sure to check out our newest article, called Handling Personality Problems At Collection Agencies.

Here’s a brief description of the article:
Good management skills help collection agencies and companies in general to stay competitive and successful. The term “management skills” is a broad category which includes motivating, disciplining as well as dealing with personality problems occasionally. How a manager handles debt collectors with these extreme personality traits will determine whether or not a human relations problem will develop. Read this article to learn effective ways to handle personality problems.

Today I watched a short video which gives businesses advice on how to minimize the number of customers who pay late (or won’t pay at all) by creating a policy regarding payment requirements that you use for each and every customer you have. The video gives a handful of simple yet sensible suggestions to help you create a sales and payment policy that will be agreeable to customers and at the same time clearly lay out what is expected of them in regards to paying for the products or services they buy from your business. It is obviously easier and more cost efficient to avoid having to call your customers to get them to pay, and the suggestions in this video address a handful of common issues that come up when a customer doesn’t want to pay. While collection agencies can be very successful in helping to recoup debts owed to your company, your business prospers when the services of these businesses aren’t required and you simply get your payments on time.

Also, be sure to check out the newest article posted to our site today, called Discipline Strategies For Collection Agencies
Here’s a brief description of the article:
Good management skills help collection agencies stay competitive and successful. Being able to discipline in a positive and effective way is very important.