The pen is mightier than the sword, but…
A seasoned, experienced and dare I say ‘grizzled’ collection expert shared with me a technique he used when a branch manager for a loan company a few years back.
When a long delinquent loan approched the write-off stage where interest would be reversed and the principal (only) would be the loss, they sent a unique (and unapproved by head office) letter to the customer.
‘Use a crayon’, it said, ‘to write our address on an envelope, and if your cheque is received by X date, we will credit all interest.’.
As the expert told me, it was amazing how people who could not come up with a minimum payment, could come up with the full principle when offered a one-time deal.
Woud this or something similar work for your firm, in these more regulated and scrutinized days? I don’t know and I never advocate using a technique that is illegal, immoral or goes against your company policy.
Yet, knowledge of this successful (at the time) technique may trigger something that will work for you.
The pen is mightier than the sword
But sometimes, you can collect more with a crayon!