Engineering Collection Letter

What an Engineering Collection Letter Can Do For You

President of Adams, Evens & Ross (AER) Wilson Cole takes this opportunity to talk about engineering collection letters. The first thing that you should know about having a collections situation is to ensure that you have a collection letter.

What an Engineering Collection Letter Can Do For You

Wilson suggests that sending out a collection letter to debtors should always be your priority before proceeding with anything else. The main reason why you want to do this is that it prompts a response from them and is a great way to test whether the debtor will pay or not.

Many of these debtors will send responses that boil down to “I’m not paying you because…”. In this situation, the creditor needs to move ahead with the collection process and stop all communication types with the debtor. This ensures that what they say can’t be used in defense of the debtor.

Another common response to receiving a collection letter is, “We aren’t going to pay you, but you can send us the documentation.” This is another red flag that you should be aware of, and you should cease all communications with them immediately if you receive this response.

What Will a Good Engineering Collection Letter Have?

A good collection letter will have a few essential parts that you should take note of. Otherwise, there will be gaps that your debtor can use to their advantage in their defense.

First is to make sure that you note the number of times communication was attempted between the creditor and debtor. Take note of the times you have tried to contact the debtor, and how many times the debtor has made promises to pay and attach invoices and statements.

Second, the collection letter should provide your debtor with an opportunity to resolve the problem without going to court. Usually, they will take the chance even if they claim they don’t have the money. This means that they prioritize other debt over what is owed to you, but they will change priorities once the threat of a lawsuit presents itself.

Third, a date where payment must be made or a proposal of a mutually acceptable agreement. Giving your debtor both opportunities will leave to door open for future communication and make collecting easier.

Fourth, a deadline is essential for your collection letter as it lets you move ahead with other options in case it passes. Make sure that you are vague here and never specify what your intentions are. Sometimes utilizing the debtor’s fear of the unknown can work to your advantage and have them pay without any issues.

Fifth, make sure that you send two versions of your collection letter via electronic means and regular postal mail. Using multiple mail channels emphasizes the importance of the message. If you receive a response promising payment at a later date, make sure you request that they pay some of the value owed immediately. This will make your debtor mentally invested in paying back the full sum.

Over 90% of accounts referred to AER where half of the debt is already paid, the other half is recovered.

For more information, give Wilson Cole a call at 800-452-5287, extension 6578, or visit the website at www.staffingdebt.com.

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