bob – the builder is a real, live Case Study. I am recording what does or doesn’t happen so that you can see the thought processes behind an effective collection strategy and how the three principles of effective account collections are applied in real life.
To see all of bob – the builder from the very beginning click here.
Bob advised that the email organised for 06 February did NOT get sent as he hadn’t been charging interest since February! As John Lennon said “Life is what happens to you while you’re making other plans”. So, a new email was organised. This one DID get sent.
13 February – email sent to Dave (the debtor)
Dear Mr Developer,
Thank you for your email and for the payment sent on 30 January.
Bob-Builders understand that the exact monthly figure cannot always be guaranteed but still requires regular monthly reductions to be made with any remaining balance to be paid in full by the end of this financial year, if not sooner.
In view of your recent payment, no interest is being charged on the balance remaining. This will continue to be the case as long as regular instalments continue. However, please be quite clear that if no reduction is made in any one month and you have not advised us accordingly beforehand, the firm will be left with no alternative other than to re-introduce the interest component in protection of its interests.
Thank you once again for the last reduction made and we now look forward to the next one which is not due until on or before Friday, 27 February.
Note the Points made in THIS email:
1. his point about spasmodic balances is acknowledged,
2. he is advised that we still want “something” monthly,
3. he is also told that we still want it paid in full by the “deadline”,
4. although interest is not currently being charged, it will be re-introduced if he doesn’t make regular payments or keep in touch.
What will we do next?
Send Dave an email just before 27 February. We’ll be Hard To Ignore.
So, dear Reader, until next time…