Today’s most significant change in the debt collection industry isn’t just that some professionals have decided to commit to ethical debt collection practices but a wider recognition of the benefits that ethical debt collection practices bring. As more collection agencies realize this, it results in a deeply-felt domino effect that impacts how they implement strategy, procedure, hiring and company branding.
At Summit A•R, our ethical collection practices are epitomized by our P.H.D. mandate. Given the success of this approach and the positive role of ethical collection in general, we believe every collection agency should use a P.H.D. approach.
What is Our P.H.D. Policy?
The collections team at Summit A•R consistently espouses a P.H.D. philosophy that guides all of the work we do in debt recovery. Not only is our P.H.D. philosophy our central ethical policy, it stands for preserve human dignity, which means that we take respectful conduct and the dignity of all people seriously.
The remarkable thing that our team has discovered about ethical debt collection is that in no way is it a hindrance to our ability to recover money for you fast and efficiently. The opposite is true: ethical debt collection can streamline the process while yielding better results.
If the employees at the top debt collection agencies across the country all understood the benefits of ethical debt collection practices, there would likely be little need for the extensive industry laws that continue to get revised, which occurred as recently as late in 2021.
Since there’s no way to overstate the critical need for respectful conduct in debt collection, here is a more thorough account of how ethical debt collection works and why every collection agency should be using our P.H.D. approach:
The Mistake of Unethical Practices
Debt collectors in the past may have thought that unscrupulous practices like intimidation and harassment were the best strategy for recovering money from people who couldn’t or didn’t want to pay their debts. Fortunately for all parties involved in debt collection, all that is changing for the better.
It should be easy to understand the most significant problem with mistreating people poorly is that no one deserves such poor treatment, despite whatever financial troubles they may be having or whatever lengths they have taken to avoid paying the bills they owe.
Nonetheless, some debt collectors in the past have been willing to forego their moral standing as a means to an end that involves making a profit for personal gain. These people were not merely mistaken in their ambitions; they also do not appear to be very kind-hearted themselves.
One of the most apparent problems with unethical collection practices outside of the more social and moral ramifications involved in mistreating your fellow human beings is that such actions bring a profoundly negative reputation to the entire industry.
It also cannot be stressed enough that despite all of these sacrifices involved in unethical conduct in debt collection, there are more effective ways to resolve debt disputes. After all, the best way to collect debt from customers is through actions that don’t just allow them to feel dignified as people but make an effort to keep their best interests at heart.
When you need to communicate with someone to resolve a matter of debt, it helps if that person is receptive and willing to communicate. If you approach that person in an intimidating manner, they will be much less willing to participate in such discussions. They will likely try to avoid any communication whatsoever.
What are the Benefits of Ethical Collection Practices?
One of the most significant benefits that come with working with ethical debt collectors is that you get a guarantee that your company’s reputation will remain positive. When your interests are represented by a collection agency not despised by the delinquent in question, there isn’t much of a chance that person will tell others they have been mistreated. Along with carrying a positive company reputation, you’ll also feel better knowing it was earned because you choose to work with an agency that upholds high ethical standards.
For debt recovery, however, the benefit is that the person who owes you money will be willing to come to the table to negotiate a solution. This will result in a much faster resolution to the problem, ensuring that your lost income finds its way to your company as quickly as possible.
Avoiding Debtors Who Avoid Debt Collectors
Treating people with human dignity is the number one way to avoid alienating your clients and takes the need for skip tracing services out of the game. While our team has the resources to employ several such strategies, it is always preferred to resolve the issue without resorting to other tactics. Once the debtor in question realizes that it is our job to help all parties involved, not merely our client, they no longer feel the need to avoid the conversation.
How are Today’s Debt Collection Professionals Different?
Luckily, today’s debt collection specialist is about as far away as one can be ethically and strategically from those years ago who sought to capitalize on unethical practices. While our team follows the mandate for responsible conduct outlined by our P.H.D. approach ardently, it takes more than the qualities of an effective debt collector regarding a respectful attitude towards all people to get the most out of the ethical approach.
The reason we know that our methods work is due to our exemplary successful track record, which is competitive among any agency in the industry. We keep meticulous records in order to continue to develop the best strategies when it comes to working with business owners and the debtors who owe them money.
In a perfect world, every collection agency would follow a P.H.D. approach or a similar mandate for ethical conduct at all times and toward all people. For now, our team is happy to lead by example to show others that ethical collection practices aren’t only virtuous, but they are more effective than the alternative. It is our hope that this example will continue to change the industry for the better as more and more agencies follow suit.
In the meantime, the best way for you to do your part in encouraging ethical practices is to partner with our team at Summit A•R for a guarantee that you’ll never need to worry about our conduct. Contact us today to find out more.