Summary
This document is a checklist for effective debt collection strategies. It outlines various preventive measures that can be taken to minimize the risk of bad debts, such as deciding who will manage the debt collection policy, whether it be a lawyer, agency, or internal staff. The document emphasizes the importance of having systems in place to detect arrears early and ensuring good communication between departments. It also highlights the necessity of staff training in interpersonal skills and procedural knowledge. The checklist advises on how to pursue debts, recommending that larger debts be prioritized and suggesting appropriate communication methods for both large and small debts. It provides guidelines for drafting letters to debtors, emphasizing clarity, firmness, and personalization. Additionally, it discusses follow-up strategies, including the use of phone calls and potential visits to debtors, as well as the option of appointing a debt collection agency if necessary.
