10 Myths Your Collectors May Still Believe

Urban myths are stories that are untrue and yet with some variations are told and believed by people all over the world. Myths are so powerful because they are passed down from someone you trust and generally contain some elements of truth. Personally I remember a story told to me by my brother of a ghostly hitchhiker. I questioned the story even as a kid but I must admit I still avoid that particular road at night.

During my time as a Collection Manager I was amazed at how many times I had to combat the same myths over and over. At one point or another, the following list made their way into my initial training checklist and yet they still managed to raise their ugly heads. These myths persist because like urban legends they are passed down from collection managers and star performers and do contain some truth. However as an industry it becomes are job to make sure these myths die now. Some myths are harmless and others are the basis for poor performance or even lawsuits.

1. Violating the FDCPA increases collections – If this myth wasn’t believed then we wouldn’t see a constant flow of news articles recounting the misdeeds of collectors across the country. The truth is that violations of the FDCPA can result in success but what collectors and obviously some managers fail to recognize is that good collection skills will collect more money and over a longer period of time. Not only do they collect more money but they keep you and your business out of the news. Combatting this myth is the easiest of all…teach good principles and reward success and fire those who can’t seem to learn.

2. What tactics worked yesterday will work today and even tomorrow – This is one that not only collectors believe but many managers subscribe to. Like all good myths it contains some truth which makes it easy to believe. I am a firm believer that good collection principles will always work. However times have changed and the customers have changed. The list of things that have changed in the last 5 years are too numerous to mention. The radical change in our economic fortunes, the shift in age demographic and the legal landscape that we work in in are just a few and should be more than enough to see the need for a new approach and yet many resort to tired phrases and tactics that belong in the good old days. Keep the principles but keep it fresh.

3. I am not a customer service agent – Customer service agents have the reputation of being light weights. They are required to do what the customer says and collection agents are “above that”. Collection agents tell customers what to do not the other way around! When in reality collection agents are just as involved in fulfilling customer needs as their customer service rep cousins. The need may be tangible or it may be emotional but every agent should be ready to identify that need and do everything within their power to fulfill it. Only when they fulfill that need will a customer pull their wallet out. This attitude is particularly damaging because the results are poor collection results, increased complaints and suits, and a poor work environment.

4. The check really is in the mail – Mistaken optimism is a trait that always personally surprised me in my collectors. No matter how long they worked for me they always believed the customer when they said they were going to pay despite all the evidence to the contrary. However, this is one myth I would not dispel. Optimism is what keeps all of us coming back to work every day. It’s what makes us collectors.

5. I am in a dead end job – Sadly many of my collectors and those I talk to everyday now believe that collection’s is a dead end job. It’s something to do when you can’t do anything else. It’s where the morally ambiguous end up and the rest of us are here just biding our time.

Nothing could be further from the truth. Debt collection is a vibrant industry with creativity and professionalism all over the world. The industry is full of people who became a collector for the short term and never left. Not because we couldn’t do anything else but because we saw value in what we were doing and liked who we were doing it with. Changing a collector’s mind is not always possible but an investment in their future will go a long way to showing them the possibility. I am still in the industry because someone decided that I should attend a conference in Las Vegas when I was just a part time collector. There was no reason for me to be there other than showing me that I could stay and contribute.

6. I can skip trace Brad Pitt and no one will know – No matter how many times I said it in the beginning and no matter how big the font was in the manual it seemed one out of 10 collectors thought that one little skip trace for Brad Pitt or whoever would go unnoticed. Except that I immediately got an email and usually a call from my data vendor. Collectors never seemed to learn.

7. My boss doesn’t know what it’s like on the phone – I spent years on the collection floor but my collectors couldn’t quite grasp it. Even though I was one of them at one time it seemed my title prevented me from understanding how tough it was on the phone. Never could convince people I understood the long hours or the rejection. My response was to stop telling stories about the “good ol’ days” and stop sugar coating it. The more real the past seamed the more likely collectors were going to accept my credentials.

8. It’s all a numbers game – I must admit this is something I promoted early in my tenure as a collection manager. I said things like” there is always more fish in the sea” and “just keep working and you never who is going to answer the phone and be willing to pay”. While those things are true I failed to recognize the rest of the story. I was failing to teach that collection’s is about people relating to people. Yes quantity of calls is a factor but the quality of those calls is what we can control.

9. Collections is all natural talent and I can’t be as good as so and so – Some people just believe that they could not be as good as their neighbor. Increased training opportunities alone don’t seem to convince them that all skills can be acquired. This can be overcome but it requires you to not only train but monitor in a way that ensures compliance with the training. It also requires a bit of success and acknowledgment from the whole team when it happens. Unfortunately us managers have a big part in promoting this myth. We spend our time telling people to improve and don’t give them the skills to do it.

10. My company doesn’t care about me – There is a difference between caring about someone and showing it. Unfortunately there are those in the industry who treat collectors like commodities. However the vast majority does care a great deal about their employees and want them to really succeed. Unfortunately the myth persists because we don’t always show our gratitude. I know many in the industry who think that bonus check should be good enough. It’s not. Find personal ways to show gratitude and most importantly invest in your employees. (It will pay off I promise!)

About Brett Sivits
Sivits has worked in the collection industry for seven years, rising through the ranks at a strong regional collection agency from Part Time Collector to General Manager. Sivits now holds the position of Associate Partner with the Intelitech Group and along with many others serves clients across the country in all sectors of the collection industry.

About The Intelitech Group
The Intelitech Group provides consulting and technology solutions to help agencies achieve optimal results. Leveraging industry expertise and market intelligence with the latest technology innovations, The Intelitech Group brings extensive knowledge, insights and practical tools to help agencies delve deep into all facets of the organization to measure, analyze and implement results-oriented solutions. For more information visit: www.intelitechgroup.com.