Taking a "Different" Look at the Collection Process

Check out page 63 of the January issue of Club Solutions Magazine...

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…

Volatility in the Marketplace (Collections)

State and Federal Compliance Standards are causing many collection agencies to look in the mirror and rediscover what really works for them.  You will find that collection agencies are becoming specialists within very specific business segments and not simply taking on business that does not fit into their core business model and/or capabilities.

This is actually great news for creditors. They are able to locate collection agency partners who have real expertise in their business, and can actually act as a consultant and share best practices that truly work well within their specific industry.

If you really want to receive an experts opinion on trends within the marketplace make sure you do your due diligence and locate a collection partner with experience that fits your business.  There is no room within our industry for agencies who are not willing to adjust to the times.