Negotiating Skills Workshop Presentation

8/3/2019 Negotiating Skills Workshop Presentation

1/37

NegotiatingSkills Workshop

"Persuasive

Communication"

National Association ofCollection Agents (NACA)

(800) 977-1197

www.CollectionAgent.org


2/37

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


3/37


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


4/37


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)


5/37



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)


6/37



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)


7/37



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)


8/37



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)


9/37



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)


10/37



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)


11/37



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)


12/37

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


13/37

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


14/37

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


15/37

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


16/37

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.


17/37

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.


18/37

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


19/37


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


20/37


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


21/37


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


22/37


(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


23/37


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


24/37


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


25/37

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


26/37

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


27/37

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)


28/37

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


29/37

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


30/37

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


31/37


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?


32/37


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


33/37

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


34/37

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


35/37

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


36/37


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


37/37


Letters represent proper legaldocumentation to legitimize anysettlement or payment arrangements thatare made

The letter must precisely state thearrangement as prescribed

Negotiating Skills Workshop Presentation

Documents

Transcript of Negotiating Skills Workshop Presentation