It is important that every deliquent customer should know that he is being watched closely. They should know that the company means business.
Many companies do have call centers to call up every deliquent customer and after every cheque bounce and or after every installment is overdue. Some bad customers would argue that he was not reminded or asked for, when they know that he is dealing the new collector. To prove that the customer was called is also difficult in the field.
But, the letter in writing has a better effect and improves collection. If not anything else, the family members/ office come to know the loan and overdue situation. Any of the family members, espcially either karta or the wife does bring up the overdue and recipt of the letter for discussion; this first circle pressure is more effective.
The letter should be modest, courteous and simple; it must bring up the following;
1. The loan details.
2. The customer and Guarantor details.
3. The Vehilce or asset details.
4. Overdue status accuretly.
5. The last payment.
6. Directions for effecting overdue payments.
7. Details of penalties and fees for any delay as per terms of the agreement signed.
Returned covers from the mail service help to bring focus on updating the change / correctness of the address with sense of urgency; many a time, this is the first sign of fraud account.
Do record the return cover status in the 'contact record' which will help the collector to get correct/ new address and update.
Do send letter to ONLY delinquent customers after every billing/ after every installment due date.
Many companies do have call centers to call up every deliquent customer and after every cheque bounce and or after every installment is overdue. Some bad customers would argue that he was not reminded or asked for, when they know that he is dealing the new collector. To prove that the customer was called is also difficult in the field.
But, the letter in writing has a better effect and improves collection. If not anything else, the family members/ office come to know the loan and overdue situation. Any of the family members, espcially either karta or the wife does bring up the overdue and recipt of the letter for discussion; this first circle pressure is more effective.
The letter should be modest, courteous and simple; it must bring up the following;
1. The loan details.
2. The customer and Guarantor details.
3. The Vehilce or asset details.
4. Overdue status accuretly.
5. The last payment.
6. Directions for effecting overdue payments.
7. Details of penalties and fees for any delay as per terms of the agreement signed.
Returned covers from the mail service help to bring focus on updating the change / correctness of the address with sense of urgency; many a time, this is the first sign of fraud account.
Do record the return cover status in the 'contact record' which will help the collector to get correct/ new address and update.
Do send letter to ONLY delinquent customers after every billing/ after every installment due date.
