Handling Objections in Debt Collection: Strategies and Practical Scripts- Decisimo

Debt collection is a sensitive process that requires excellent communication skills and patience to handle objections raised by debtors. Here are some general strategies for handling objections in debt collection:

1. Understand the debtor's objection

   Listen to the debtor's concern and clarify any misunderstandings. For example, if the debtor is questioning fees charged, explain the fee structure clearly.

2. Be empathetic

   Debt collectors should acknowledge the debtor's situation and try to work out a solution that works for both parties. For example, if the debtor is unable to pay, suggest alternative payment options or recommend solutions that other customers have found helpful, such as borrowing money from friends or family.

3. Offer specific solutions

   Provide actionable solutions and suggest alternative payment channels. For example, suggest specific payment methods that the debtor may find more convenient.

4. Check the debtor's information

   In some cases, the debtor may object to paying their debt because they claim that they did not apply for the loan in question.

   The debt collector should handle this objection by checking the information provided and explaining the consequences of not paying off the debt.

5. Explain the reason for the calls

   If a debtor objects to debt collectors calling them repeatedly, the debt collector should explain the reason for the calls and offer a specific payment time to avoid repeat calls.

Examples of practical scripts that debt collectors could use when handling objections include:

• Providing a clear explanation of fee structures and emphasizing the importance of paying off the debt as soon as possible.

  "I understand that you have concerns about the fees.
  Let me explain the specific rules of fee collection to you so that you can avoid any unnecessary charges or penalties.
  It's important to pay off the debt as soon as possible to avoid any negative consequences.
  Can we discuss a payment plan that works for you?"

• Suggesting alternative payment options and providing specific solutions that other customers have found helpful.

  "I understand that paying off the debt can be challenging.
  We have had customers in similar situations who found it helpful to borrow some money from friends or family to make the payment and pay them back later.
  Do you have any options like this? Let's discuss some possible solutions that can work for you."

• Checking the debtor's information and explaining the consequences of not paying off the debt.

  "According to our records, you are behind on your payments. This can have serious consequences such as penalties, legal action, and negative impacts on your credit score.
  It's important to resolve this issue as soon as possible to avoid any further consequences. Can we discuss a payment plan that works for you?"

• Offering specific payment channels and explaining the reason for calls while providing a specific payment time to avoid repeat calls.

  "To help make this process as convenient as possible for you, we offer a variety of payment channels, such as online payments and mobile apps.
  Let's discuss which payment option works best for you.
  Also, to avoid any further calls, let's set a specific payment time that works for you.
  Can you make the payment today or tomorrow?"

• Being patient and persistent when following up with debtors who are behind on payments, and emphasizing the importance of paying off the debt as soon as possible to avoid negative consequences.

  "I understand that paying off the debt can be challenging, but it's important to do so as soon as possible to avoid any negative consequences.
  Let's work together to find a payment plan that works for you.
  Can we discuss a payment plan that you feel comfortable with?
  Also, I'll follow up with you in a few days to check on the payment status. Is that okay with you?"

By using these strategies and scripts, debt collectors can handle objections more effectively and increase the chances of successfully collecting debt.

It's important for debt collectors to remain professional and respectful throughout the debt collection process and to work with debtors to find solutions that are mutually beneficial.

With patience and persistence, debt collectors can help debtors to repay their debts and avoid negative consequences such as penalties and negative credit records.