Best Bad Debt Recovery Practices We should follow

  1. Develop a Debt Collection and Recovery Process: Develop a debt collection and recovery process that includes regular contact with debtors and a clear timeline for when and how to escalate cases.
  2. Create a Collection Policy and Protocol: Create a comprehensive collection policy and protocol that outlines who is responsible for debt collection, how to contact debtors, what collection methods to use, and when to refer to an attorney.
  3. Establish Communication Guidelines: Establish clear communication guidelines that specify when and how to contact debtors and how to respond to their requests.
  4. Stay Professional: Stay professional and courteous when communicating with debtors and adhere to all applicable laws and regulations.
  5. Negotiate Payment Plans: Negotiate payment plans that are agreeable to both parties, and make sure to follow up on payments.
  6. Leverage Technology: Leverage technology to automate debt collection processes and streamline communication.
  7. Utilize Collection Agencies: Utilize collection agencies when necessary, and make sure to ensure they are following all applicable laws and regulations.
  8. Consider Legal Action: Consider legal action as a last resort, but only after all other collection options have been exhausted. Make sure to research applicable laws and regulations before taking any legal action.

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