Personal Finance: Creditors' 'Open Door Policy'

I meet many creditor management daily who assure me as a remedial representative that they are there to fully support their customers and they see no reason for my intervention.

However. their talk is not their walk most of the time, as the proof is always in the eating and there is zero eating more than often.

When you maintain a ‘Closed Door’ then you are regressing to the middle ages as the world has changed. True leaders receive people at anytime and make them feel welcome and that the problem they have addressed is important, valuable and significant to the organisation.

It’s like Henry Ford’s success was based on he’s habit of applying personal attention to customers and staff, but it seems that philosophy is a lost cause in most organisations.

Granted that most senior managers have busy daily schedules but when a case is presented for your review especially when it is directly received from the debtor, then it is your responsibility to take action and ensure the request is amicably resolved in favour of both parties.

By this I don’t mean to simply route it back to the subordinate who was not initially interested in reviewing or resolving the problem which is the reason it was escalated to you. It is your duty take action yourself as it will cost you zero so save a life.

Here stands the desperate debtor who is ready to throw in the towel.

After being sent from pillar to post for a few weeks or months where he’s remedial request response is zero;

Where he is continually promised that the remedial action is under review process;

Where parallel to these assurances and promises he’s liabilities including penalties are applied and increased, so he’s situation regresses from the time he’s case was actually presented;

Where he is continually badgered by collections to pay default EMI’s when he informed them in the first place he was struggling to meet he’s current EMI’s and hence the reason for he’s remedial request submission, so how does the creditor expect him to continue meeting those current EMI’s?

Where upon regular inquiry after paying the supposed remedial down-payment, he is told by the collector who secured the payment to wait for the next account allocation and he will be advised which collector is assigned to he’s account to continue the remedial process.

No guesses that the next collector then demands the outstanding default payment or the upcoming due EMI, which is not even due yet and the remedial request is lost in the sand, but whose listening and helping?

Where he follows the chain of command but finally, is right back to the first representative who simply has no problem repeating the same response, i.e…

We cannot help you as you are regular in spite of the debtor being regular due to direct debits from salaries, simultaneously swiping a credit card EMI from the same salary account even when the EMI due date is not current;

Where the debtor insists to meet with the senior manager but he consistently refused as he is told that they don’t meet customers and perhaps the senior manager is seated in the next office.

The debtor is given the senior manager’s contact details but he still does not receive any response.

Finally the debtor has no choice but to face legal action because he does not have sufficient funds to cover the total demanded outstanding EMI’s and it does not matter if he makes an effort to borrow money from anywhere to make a partial payment as he is told the manager has instructed the representative to inform the debtor that failing the demanded total EMI, a case will be filed, period, no choice, no zero.

The debtor is asked why he has consulted with a remedial company when he could have come directly to the creditor.

Again, after all these delays, what choice did the debtor have to put he’s trust in someone else with the hope that they can resolve he’s problems with his creditor because just maybe the remedial company was highly recommended to him. So now he puts he’s hope and faith in an external party, so how can a creditor question he’s choice when they could not meet he’s requests?

What now? Who is actually to blame?

How many times must I repeat myself that remedial is an art, it is not mean’t for everyone, even a remedial manager must be a special personality who possesses empathy and has a huge passion for the job as it is not only about the money, but gaining the confidence of the debtor. So if you, Mr. Creditor can just try to be nice, respectful and kind to a desperate debtor who has approached your organisation for help to resolve he’s problem, then you will understand that there is nothing hard-core about remedial like collections so your staff should acquire new habits, perhaps highly effective remedial training will do the job.

Remedial it is an absolute soft-skill process that must be taught, coached and mentored to those who are qualified and trained to be seated in those very special seats.

You cannot derive from a collections department and fully comprehend what it takes to be a true remedial specialist and I must admit I have met a few very good remedial specialists over the past months, but, there are way too few of them around.

Hence, there must be a true shift identified right now by HR senior managers to apply those changes to yield the desired results. Don’t just employ a candidate because they come highly recommended, ensure their profile is an absolute match for a senior remedial position, else they cannot be effective for the tasks assigned to them.

A senior executive cannot just shift the problem back to the source once received and simply close the door without directly acknowledging receipt of such complaints, because successful service deliverables is based on the personal touch, not shifting, ignoring the problem and hoping it will go away. Never forget that you are dealing with a human being and their life, for which makes you responsible if you are seated in a position of strength. Don’t ignore or shift the responsibility and  turn them away, because you are not infallible, untouchable or susceptible to experiencing the same situation one day as a financial crisis does not distinguish, it consumes anyone at anytime, when they least expect it.

It’s not rocket science that there will be no true remedial action because there is no mindset change, so nothing good can come out of the end result. The root must be identified to eliminate the stumbling blocks for this process to be as highly effective, as it can be because remedial measures are the most effective for retention regardless.

But it also requires visionary leaders seated in those very key positions within large organisations that have the ability to resonate with the debtor’s presented problem, take action and apply the personal recognition to the debtor for escalating the problem, as people like to feel that they are respected and their efforts appreciated and will cost zero to just be human for once and try to make a difference.

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