negotiating skills workshop presentation
TRANSCRIPT
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NegotiatingSkills Workshop
"Persuasive
Communication"
National Association ofCollection Agents (NACA)
(800) 977-1197
www.CollectionAgent.org
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FDCPA Rules andRegulation Compliance
FDCPA Fair Debt Collections PracticesAct
Enacted by Congress 1966
Enforced by FTC (Federal TradeCommission)
To protect consumers from abusive,deceptive and unfair debt collectionpractices
Each state may have their own impedinglegislation that may vary the scope of themain stream logistics of the federal formatof the FDCPA
In that case, the state statute will take
precedence over the federal context
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FDCPA Rules andRegulation Compliance
Most of the Law in reference to theindividual debt collector falls undercompliance in regards to communication
which includes: Who you can speak with
Information you can/cannot disclose
Proper representation
Proper/Legal time-zone contact
Parameters of accepted legalrepresentation
Cease & Desist orders and Limitations
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
1. Ask you to pay more than you owe
The collector cannot misrepresentthe amount you owe. [15 USC 1692e] 807(2)(a)
2. Ask you to pay interest, fees, orexpenses that are not allowed by law
The collector can't add on any extra
fees that your original credit or loanagreement doesn't allow. [15 USC1692f] 808(1)
3. Call repeatedly or continuously
The FDCPA considers repeat calls as
harassment. [15 USC 1692d] 806(5)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
4. Use obscene, profane, or abusivelanguage
Using this kind of language isconsidered harassment. [15 USC 1692d] 806(2)
5. Call before 8:00 am or after 9:00 pm
Calls during these times are
considered harassment. [15 USC 1692c] 805(a)(1)
6. Call at times the collector knew orshould know are inconvenient
Calls at these times are considered
harassment.[15 USC 1692c] 805(a)(1)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
7. Use or threaten to use violence if youdon't pay the debt
Collectors can't threaten violenceagainst you. [15 USC 1692d] 806(1)
8. Threaten action they cannot or will nottake
Collectors can't threaten to sue or filecharges against you, garnish wages,take property, cause job loss, or ruin yourcredit when the collector cannot ordoes not intend to take the action. [15USC 1692e] 807(5)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
9. Illegally inform a third party aboutyour alleged debt
Unless you have expressly givenpermission, collectors are not allowed toinform anyone about your debt except:
a. your attorney
b. the creditor
c. the creditor's attorney
d. a credit reporting agencye. your spouse
f. your parent (if you are aminor)[15 USC 1692c] 805(b)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
10. Repeatedly call a third party to getyour location information
The collector can only contact a thirdparty once unless it has reason to believethe information previously provided isfalse. [15 USC 1692b] 804(1)
11. Contact you at work knowing youremployer doesn't approve
A collector is not allowed to contactyou at work if youve let them know youremployer doesnt approve of these calls.[15 USC 1692c] 805(a)(3)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
12. Fail to send a written debt validationnotice
Within five days of the collector's
initial communication, it must send you anotice include the amount of the debt,name of the creditor, and notice of yourright to dispute the debt within 30days. [15 USC 1692g] 809(a)
13. Ignore your written request to verifythe debt and continue to collect
A collector can't continue to collecton a debt after you've made a writtenrequest to verify the debt as long as therequest was made within 30 days of the
collector's written notice. [15 USC 1692g] 809(b)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
14. Continue to collect on the debt
before providing verificationAfter receiving your written dispute,
the collector must stop collecting on thedebt until you have received verification.
[15 USC 1692g] 809(b)
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FDCPA Rules andRegulation Compliance
Most Common FDCPA Violations:
15. Continue collection attempts afterreceiving a cease communicationnotice
If you make a written request for thecollector to cease communication, it canonly contact you one more time, via mailto let you know one of the following:
a. further efforts to collect the debtare terminated
b. certain actions may be taken bythe collector
c. the collector is definitely going totake certain actions.[15 USC 1692c] 805(c)
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Pre-Call Planning
Note the state debtor is located in
Notice most importantly in the area codefield of the telephone number, not solelythe address field.
Gather all information about the debtorthat can be inferred by the face of theaccount
Proper pronunciation of the debtors nameis important
Understanding who the client is; ifpossible and what the debt is for
The balance in full is always due!!!
If there is any settlement parameters and
guidelines and what the criteria would be
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Pre-Call Planning
Know your cut-off line in reference topayment terms being extended
Be prepared with your collection script
Where should be my initial point of
contact be in order to be most effective inreaching the debtor for resolution
If not the first time calling, where was thelast point of contact
The last place of contact will most likelybe the best place to initiate the next call
Read the notes from the last call to havea clear understanding, as not to have torevisit the prior call
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Pre-Call Planning
Does the notes from the history of theaccount preclude or disallow anycommunication to the numbers on file
If so, what obtain what is the most
beneficial or viable option in that case Notice the ethnicity of the debtors name;
as to ascertain if possibly a translatormaybe necessary
Once again the notation on the account
will disclose this information if this is notthe first attempt
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Third-Party Disclosure
Who is ultimately responsible for the debt
Who can I talk with regarding the debt
You cannot disclose information aboutthe debtor to anyone besides the debtor
directly unless given expressauthorization by the debtor themselves.
Except in the case of:
Existing Power of Attorney
Legal Counsel/ Attorney has been
retained CCCS Agency or other representativeagency has been authorized to handlethe debtor affairs in reference to theirdebt
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Third-Party Disclosure
Once legal representation has beenestablished you cannot contact thedebtor directly under anycircumstances both verbally or written.
Usually contact with the debtors spouseis valid except in non-spousal states.
Non-Spousal states are:
a. Iowa
b. South Carolina
c. Connecticut
Disclosing any information to a spouseis a direct violation even if the spousesays they are responsible.
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Third-Party
Disclosure In a Non-Spousal state you need both
verbal and written authorization from the
debtor in order to disclose anyinformation to the spouse.
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Leaving a ProperMessage
There are five (5) types of messagesthat can be left
1. Person to Person
2. Voice mail or AnsweringMachine/Service
3. Facsimile
4. Email
5. Text Message
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Leaving a ProperMessage
Person to Person
Clearly identify yourself
Be authoritative Stress urgency of call back Always ask for alternate contact
numbers/information Verify all information Ask relationship to debtor Always get a read back of the
message left Give all pertinent information
Company name, case number,reference number etc.
Inquire the best time to reach thedebtor
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Leaving a ProperMessage
Voice Mail or Answer Machine/Service
Speak Clearly
Watch speed of message
Be careful not to disclose it isconcerning a debt
Stress urgency
Always note if voice mail identifiesitself with any identifiable markers(i.e. male voice, ids residence,Spanish speaking etc.)
Identifiable markers will let you know
or confirm of the message has beenreceived
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Leaving a ProperMessage
Facsimile
Call to verify fax number especially ifa business debt
Always use the collection letter witha cover sheet
Cover sheet should have fulldisclaimer and disclosure statementto avoid breaking third partydisclosure laws
Stress urgency and confirmation ofits receipt
Always make sure it is markedattention to the intended recipient
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Leaving a ProperMessage
(Facsimile Continued)
Helps to get to the debt and avoid stalltactics the debtor may try to impose
Never disclose debt in subject line;however, do stress urgency
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Leaving a ProperMessage
Email
Modern society and technology withsocial networks and the world wideweb and internet makes email one of
the best sources of communicationwith debtors
Ensure your email has a disclaimerstatement in case it goes to the wrongparty to avoid third party disclosurelaws
Include Mini-Miranda oncorrespondence
Always request return receipt and readverification
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Leaving a ProperMessage
Text Messaging
With the increased popularity in cell phoneusage and the decline in land line telephones
text messaging becomes a viable source ofcommunication where permissible
Get debtors permission to do so
Most state laws prohibit it without properconsent
Check state laws regulated by the TCPA
(Telephone Consumer Protection Act)(Ericgoldman.org; Technology & MarketingLaw
Blog 2/12/11
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Ways to Effectively UseYour Voice
Be Authoritative
Never ask open ended questions to thedebtor
Use professional words and
terminologies Never use slang
Control the conversation by stating thepurpose of the call
Use consistent tone of voice with
confidence Never yell or scream. It shows lack ofcontrol and discipline
Use a pattern of repeats
Always stress urgency of today
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Temperament andControlling The
Conversation Never take the conversation personal
Convey to the debtor this is business andnot personal; as to control the debtorstone of speech
In cases of dispute or errancy by thedebtor against the client, always stressyou are not the client, but want to bring aresolution to the matter TODAY!
If possible use the date of debt to your
advantage
Reserve chain of command for escalationof temperament
Dont allow debtor to raise disputes thatare unfounded as a stall tactic
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Ways to Effectively UseYour Voice
Be consistent with rebuttals
Have confidence in client information toreaffirm the debt as paramount
Dont allow personal issues to infringe
upon the job at hand
Dont take one call into another
Each call is unique unto itself
Dont be afraid to have the debtor call you
back with a resolution (24 hours)
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Listening Effectively forRedirection to Leverage the
Debt Never assume the debtors issues as
your own
Always represent the client
Seize the opportunity to support the
debt being owed
Identify key phrases that admitsresponsibility
Listen for alternate payment options
a. Spouseb. Relatives; especially live-ins
c. Borrowing or loans
d. credit cards with balancetransfers
e. Second job
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Listening Effectively forRedirection to Leverage the
Debt Listen for inclusionary opportunities for
payment terms to implement
a. Hardship
b. Settlements
Listen to the debtor explain their story;Most want to vent
You are probably the first live voice theyhave had in reference to the issue in along time
Afterward, convey the ability forresolution based on information gathered
Use aggressive persuasion tactics
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Asking Questions withPrecision
Never ask open ended questions
Always ask questions that point towardpayment and resolution
Always have a follow-up question in
relation to the outstanding balance Always redirect questions to the debtor
You are not the one who owes the bill
Ask questions that assist in theverification of information:
1. Home address2. Home phone number
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Asking Questions withPrecision
3. Place of employment
4. Place of employment address
5. Place of employment telephonenumber with extension
6. Valid e-mail address7. Alternate contact numbers (Cell)
8. Spouse contact information (ifapplicable)
Ask the pertinent questions that lead toa definitive resolution:
1. When can you pay?
2. How much can you pay?
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Asking Questions withPrecision
3. How do you pay your bills?
(check, credit card, on line,western union etc.)
4. When do you get paid?
This will avoid circling between you andthe debtor
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Problem Resolution andEffective Alternatives
Listen effectively and affirm debtorsconcerns
Identify the debtors dispute parameters
When disputes are risen; resolve
undisputed portion immediately andrequest debtor to provide writtendocumentation
Present alternatives that point toobtaining payment
If BIF is not attainable ; be creative toexecute terms within reason
Establish reasonable parameters in aneffort to satisfy debt in accordance withany issues debtor may have risen
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Problem Resolution andEffective Alternatives
Know the parameters within the client willaccept terms and have the ability tostructure terms within them in anaffirmation pattern
Use a Help Me; Help You approach
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Structuring A CollectionLetter
Know FDCPA Laws in the State thedebtor is in concerning contact
If using a letter series make sure there isan escalation in tone and urgency
Validation notice must be sent first; givesthe debtor 30 days to dispute the validityof the debt and also advises the debtor ofyour representation if the client
Make sure all personal contact for thedebtor is correct
Name
Address
Zip Code
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Structuring A CollectionLetter
Make sure to clearly state your intentionin reference to representing the client inthe body of the letter
Make sure to demand payment in full in
the body of the letter, within a definitivelystated time frame
Be clear to state who the original debtwas owed to, if you do not represent theoriginal owner of the debt
Be sure to include the Mini-Miranda is onthe bottom of the letter This is an attemptto collect a debt any information obtainedwill solely used for that purpose
Make sure the letter includes proper
contact information for the debtor tocontact you in reference to the debt
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Structuring A CollectionLetter
Letters represent proper legaldocumentation to legitimize anysettlement or payment arrangements thatare made
The letter must precisely state thearrangement as prescribed