Legal Collections and Attorney Letters are way too much!

Gym Collections

It’s kind of like using a sledge hammer on a thumb tack. Yeah, it gets the job done, but the collateral damage is unnecessary and causes more harm than good.  In an industry where the lifeblood of your future revenue depends solely on how you are perceived within your local community, do you really believe a member who owes you for a past-due amount of only $100-200 truly deserves to feel threatened by a law firm.  It is widely known that consumers truly believe they are being sued when an attorney letter pops up in their mail box, when in reality a lawsuit is never even considered by the firm that sent the letter (It just would not be cost-effective to file suit).  

The alternative is to partner with a collection agency who has your best interests in mind (an agency with a lot of experience in health & fitness), and cares about your future reputation.  Look, consumers know that if they fail to pay a bill on time, there are repercussions for their delinquency, and generally speaking it is understandable if a collection agency chooses to report the unpaid balance on the consumer’s Credit Bureau Report.  The collection tactic that works best is to simply appeal to the consumers’ good nature and simply inform them of their obligation to fulfill the contract they signed…, and try to work with the member and get them back into the gym…, not threaten to sue them!

Yes, there is a time and place for a collection attorney, but it’s not on balances that fall below $1,000. It is overkill, and you will see the negative impact after the damage is done, and it’s too late.

Professionalism and common sense always prevail.

Learn more about First Credit Services, and their professional Collection Approach which is geared toward Member Engagement, and maintaining a very positive reputation for everyone involved. Maybe that’s why we maintain a perfect A+ Rating with the Better Business Bureau…

Health Club Membership Collections

www.firstcreditonline.com
First Credit Services has a long history as the leading and most innovative health club membership debt collection agency in the United States.  With decades of experience working closely with health and fitness club owners coupled with an experienced management team with decades of debt collection agency experience.  FCS offers the right mix to handle collections on health club membership debts with expertise and professionalism. Great Member Service is the main component of our success.  FCS manages both first and third party collections for many of the most prominent fitness brands across North America.

First Credit Services has built a department 100% DEDICATED to our Health Club Clients that require a customer service driven approach to debt collections. We offer health club collections in a way that impacts your fitness business positively.  Most Health & Fitness Club Collection Processes require a more detailed approach to ensure fewer members fall too far behind.

Your Collection agency should help save memberships, so make sure you understand your agency's core philosophy... Ask your Collection Agency Partner these simple questions:

Q. Does saving a member mean as much to you as simply collecting money? 
A. Yes, because we understand a saved member has much more value than a quick buck. We help facilitate Member Reinstatements.

Q. Do you work as an arbitrator to try and resolve issues, or are you too forceful in your collection tactics?
A. Look, customer service should always come first, and everyone loses when your agency treats your members with disrespect.

Q. What security Measures do you have in place to protect membership data?
A. FCS has the Controls in place to protect data and remain 100% Compliant. FCS is SOC 2 Type II Certified and PCI-DSS Level 1 Compliant.

Q. Do you employ enough resources to reach my members on the phone on a consistent basis?
A. Yes, FCS operates 3 Call Center Locations and employs over 300 Call Center Agents dedicated to gym membership collections.

Review your Agencies Ratings with the BBB, and CFPB.  Research Online Reputation Management to see what consumers say about the agents. Make sure your agency responds to customer inquiries and/or complaints in a prompt and efficient manner. If your agency does not respond it looks really bad, and leaves you to deal with unhappy customers.

There is a vast difference between the high and low quality debt collection agencies representing the Health & Fitness Industry.  Health Club Membership Collections does become much more successful when your agency partner has the resources in place. 

Also, if you handle the collection process internally, it could be a big mistake.  Remember, your staff needs to remain happy and friendly, and collecting past-due memberships is a very hard job.  Allow a reputable agency to assist. All health club membership collection needs to be handled in a back office away from the rest of your membership population.

Honestly, there is so much more to go over, and keep in mind that a quality agency should be able to discuss these and other issues with you, and offer back-up documentation to prove they are worthy to handle your business. In short, ask a lot of questions, and try to unmask your debt collection agency.  An Agency may not have the ability to supply you with sufficient information, which would be a red flag.

wjackson@fcsbpo.com