Finance and Loans Officers Handling Common Excuses - By: Terry S Vostor

Finance and Loan firms provide financial assistance by chunking a huge amount into affordable installment plans. It's a big help especially for families who are just starting out. The challenge is during unstable economy, tendencies are some debtors will miss payments. No doubt about its difficult in 2010. Even with all the big bailouts of the Obama and Bush administrations it seems that most banks won't give out auto loan credit to even the best credit risks that an auto sales rep can qualify. They can use different sorts of excuses and sometimes it can be very frustrating to deal with if you don't know how to. This article will give you some tips on how to deal with payment-delinquency.

First off, here are some common excuses that debtors use:

Already mailed payment - if it's still within mailing period you can just opt to consider. Already mailed the check ' ask for full details. If the mail is still within mailing period, normally 7-10 business in most part of the US, then be considerate but do ask the customer to follow it up. If however this has been a recurring issue, out-maneuver your customer by asking for the payment to be stopped and directly transfer the funds from their bank at your expense. This would make them think twice to use that excuse the next time. You can advise that for the first instance we can waive the late charge but this is only a one-time courtesy. They should take into consideration the mailing period when they send the payment the next time.

Lack of immediate funds due to financial reasons, etc - Knowing the most common excuses why debtors can't pay and how to deal with them will lead to an effective way of handling these scenarios. Collection policies should be firm however, so deal with this based on your companies late payment policies. Check for possible extensions if there is any. If there is, you can opt to give a one-time exception. We don't want them to think that they can do this again in the future. Once an account turns past due, contact the debtor. A friendly reminder about the bill almost always encourages the person to find ways to pay it.

Genuine reason - All/some of the signing officers are not available ' This shouldn't be the case, but if it's only for a day then you can just bear with it. However if it's for an excessive period then it's time to contact your collections agency or lawyer - be suspicious and investigate thoroughly. This reason is mostly used by debtors to avoid late charges or fishing for credits. If proven true however, do everything you can to help the customer. Statistics show that customers' who have had problems and were assisted well to resolve it are more satisfied that customers who didn't have any issues with the company at all. Handling common excuses of debtors can be quite frustrating at times if you don't have an idea on how to do it. Follow the simple tips mentioned above and you'll be more effective in dealing with these situations. Missed payment should be expected in business. Never overlook a delinquency status even though it's the first time. Treat it with urgency. As early as day 5 contact the customer. Remind them of their past due amount. Better yet, purchase equipment that will automate the task. Add flexibility on your payment methods. Educate the debtor on ways that they can pay their bill and highlight the ones with faster turnaround time. You should at least know how to deal with these scenarios so that you and the debtor could work together to find the best resolution for the problem.

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