Harassing Debtors is Not an Option, But Here’s What You Must Do
The debt collection industry is a broad sector. Moreover, the poor debt collection strategy has led to stringent regulations. Not only does it affect your business reputation, but you’ll also need to pay a significant amount of fines. The Fair Debt Collection Practices Act went into effect in 1977. The regulation ended the abusive tactics that debt collection agencies ran in order to scare people to pay the debt. In the field of healthcare debt collection, the act helped stop harassment from debt collectors and gave consumers a way to fight back. Unfortunately, however, many debt collection agencies still stick to the old way.
Harassing customers is a black-hat practice that hardly yields any returns. Instead, there are other client-friendly ways that a healthcare debt collection agency may implement for successful collections.
Harassment is not an option
Ruins your market presentation
When words get around that your business treated customers poorly, it’ll reflect negative prominence in the market. It doesn’t matter whether the person owed you money or it was the collection agency. Your organization will have to face the brunt.
In the future, people will be reluctant to go for your service as they get to know that the collection process is unethical. As a result, the consumer will reposition even when you offer the best service, i.e., implementing excellence.
Resentful clients
Calling someone with repeated phone calls and threats is going to work like reverse psychology on the customer’s mind. This will make them even less likely to pay. When consumers are resentful, they won’t simply pay no matter how much they owe you.
Some customers may even develop a sense of pride in not making the payments and leaving you in the lurch. If that’s the case, you aren’t appealing to their understanding of what’s right anymore. But, remember, you’re battling the pride, and that’s something harder to fight.
Opens lawsuits
If the tactics are forbidden according to the Fair Debt Collection Practices Act, it’s a grave mistake. Moreover, your organization is basically opening a lawsuit. Besides, consumers who prove they are being harassed by a healthcare debt collection agency can actually end up making money out of the situation.
There are many cases where debtors and businesses are often settled for more than the original debt was worth. It’s a quick way for the company to lose money.
What works well?
With long-term debt collection experience, we’ve learned a lot about how to work with consumers in the way that makes them the most. Moreover, having an open, honest conversation about the debt and sincere discussion to find a solution works every time.
The goal here is to help consumers clear their debt most efficiently. With the hospital revenue cycle management, you can help the consumer pay off this bad debt in a way that works for them so they can get this burden off the plate.
Here are some proven ways to collect a debt,
Accept all forms of payment
This is an easy way to generate payment. Your company must accept cash, credit, or online payment when clients go for a fee.
Follow up early
A lot of businesses send a bill at the beginning of the year or never send a follow-up request when the payment isn’t made. People have a lot going in their lives; as a result, don’t let this pile up.
Write off
Some debtors may not pay at all. In that case, you must be prepared to write it off.
Conclusion
You need to hire an experienced team. The truth is that you got into the business, and debt is a part of the journey. A professional partner will help you meet all your collection challenges.