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DEBT COLLECTING Q & A
– Issue 8
By Jim Finucan
© Tiare Publications Group
Dear Jim: My company sold $3,200 worth of merchandise to another
firm some six months ago. When I attempt to pursue payment I
learn
that the person who placed the order has left and the company
claims
not to have ordered the product and refuses to pay. What do I
do?
"Confused in St. Cloud"
Dear Confused:
The biggest problem you face is not that the purchasing agent
has
left, but that the debt is old and becomes more difficult to
collect
with every passing day. Six months is a long time for an account
to
be past due. The agent who purchased the software was acting on
behalf of his employer when he used credit to buy the product
and the
company is fully liable. You will need all of your documentation
to
prove your case. A contract does not terminate when an agent of
the
company leaves. You'll need to educate the company with a firm
call
placed to the right person. Don't make your argument to anyone
who is
not a decision maker. Go right to the top and talk to the
president
or owner. That's a large part of the battle.
Is the argument he gives you the same as you've heard from the
accounts payable people? Sometimes the reasons given for
non-payment
vary depending on whom you're talking to. So listen before you
go
after him. Here are some points you might make:
Do they, themselves, write off any debt they incur when one of
their
client's representatives leave?
As a leader of the company, does he consider himself an honest
man?
If so, how does he feel about using your product without paying
for
it?
What is the company's status? Are they hurting financially?
Are they frequently sued for non-payment and do they expect
credit to
be extended to them?
Is he aware that when a judgment is taken he is responsible -
not
only for the full amount but for the accrued interest and the
collection costs as well?
Continue this line of questioning going until you get to the
Heart of
his problem – that may well lead you to a happy conclusion.
(End)
Jim Finucan personally developed collection techniques that made
him
a "top gun" bill collector. Now these powerful
techniques are
available in his book "Past Due! – A Debt Collections
Manual. More
information is available at http://www.tiare.com/pastdue.htm
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