Creditors, stop delaying remedial decisions, when it’s possible…
It continues to baffle me that once a remedial company has applied due diligence to the qualifying criteria of a debtor to be presented for consolidation and/or restructure, that the request is delayed infinitum, where in the background, collections staff continue calling and victimizing debtors, eventually filing legal cases. We all know they could have avoided this action and eliminated risks, by recouping the liability in the long-run, where the client will now face a major legal problem.
Almost 100% of the time when a debtor approaches you for a restructure, then they are facing problems and need the relief to reduce their EMI’s and whilst they are salaried, and you can assist towards reducing their DBR (Debt Burden Ratio), then, what is the problem?
Problems that can be avoided, are:
a. Nowhere is there a recorded note that the creditor has received a request for remedial, so the current allocated collections representative has no knowledge of this, hence the collections calls continue.
b. Nobody bothers to call the debtor to advise them of their application status and when he calls for an update, nobody knows.
c. Many times, just because the debtor has approached a remedial company for assistance, the creditor develops an attitude and refuses to entertain the debtor’s request, so the procrastination continues, resulting in a legal case.
d. The latest is debtors are first requested to present existing restructures approved, then the creditor will consider the request. How is that possible if they just started the process? By delaying you are continuing to increase their delinquency, so the legal filing of the case is inevitable and not self-inflicted, because the debtor initially requested help and simply did not get it.
e. When debtors are demanded to pay high down-payments for considered restructures and they advise the creditor they don’t have the money, or to reduce it, they are advised to borrow from family or friends. So, what about the individual who has no family or friends here who can assist? When in debt, why should the debtor add an extra liability to their existing crisis, just because? Is this just because to support collections representatives to achieve their target at all costs? Or what is the reason?
f. A few days ago, we had a client who had lost he’s job, desperately trying to secure another job and the collections representative sarcastically enquired how the debtor is surviving and then promptly informed him that there is no hope for him, what is he doing here, he should go home! How can he do this when he already has legal cases filed against him? It doesn’t matter if the debtor is delinquent but somewhere along the line there should be empathy and compassion when collections representatives call such a client, as he accepted taking the creditor call to repeat he’s justifications for the hundredth time, just because he is committed to not only taking the call, but securing another job and then repaying he’s debt and ironically, he had just completed he’s restructures when he was terminated and is now facing a dire crisis. So, you never know when you can find yourself in that same situation, therefore being judgmental and mean, is out of context.
g. I personally found senior collections representatives facilitating remedial cases, then on a specific day promising to conclude the request the next day, only to find out that the individual is on one month’s leave from that day and of course then nobody is informed, or the case is not handed over, so the debtor must start the entire process from the beginning. But tell me, who really cares? Who is hearing the voiceless and faceless voice that took the courage to step out and repay he’s debt?
h. Turnaround times for remedial requests should have a time-line, not tarry for weeks or months, because it appears that many times there is no sense of responsibility from creditors, they are taking it easy, no rush at all, they simply don’t care about the debtor hanging in the balance for 1, 2, 3 or even 6months. But once the case is escalated to senior management for this very reason, then the matter is taken personally and right there at the lower level, the door may close completely for a very long time, until they find the time to attend to it, or the request is adamantly declined, unless they are reprimanded to complete it, after the complaint was lodged.
How many times have I repeated you have a responsibility towards your organization, there are no favours where the above examples made are for normal cases, where you know the debtor is facing a genuine debt-crisis and is willing to repay their debt, but lost a job, or fell ill or any other valid reason, even being over-extended, because many are, but they are trying their utmost to correct their situation?
There are many who can skip right now if they wish, but they don’t, because believe it or not many have integrity and principle, regardless of their delinquency. So they stay and persevere this process which can become soul-destroying for them many times, but at the end we teach them to exercise patience and tolerance, as they need the help, that this is the lesson of debt, but most importantly, that it will pay off in the end and be beneficial to them.
When you are dealing with a human being filled with emotional fear and turmoil and they approach you for help, then you need to take a sincerer stance, as it is not your father’s organization, you work there, you have a clear role and reasonability, also commitment to act with the highest integrity, to present the best available offer in line with your policies and that is all that this kind of debtor expects from a creditor.
I am always amazed at the efficient collections representatives and management who go the extra mile to facilitate and expedite this process with the utmost efficiency, understanding and humane attitude and there are many. So, to those I am referring to and you know who you are, I wish to thank you for your servitude, because it continues to make a difference, where others like you, have not yet learnt how best to serve humanity. It is this kind of service that drives organizations, economies and countries to greater future growth and success and I just wish those unco-operative individuals would really grasp that it is not personal, neither is it about them…