There is a positive change in the attitude of creditors and their respective collection agencies towards debtors who take responsibility of their debt-crisis situations, especially to those who approach creditors for a payment plan or to restructure considerations with a reasonable fixed interest rate over a longer tenure, etc.
However, some of my clients still share unpleasant experiences such as … creditors calling and even visiting their places of work, in spite of their head of collections being informed that the client visited their office and that a restructure application is pending; continually demanding payment; threatening them over the phone that legal action is already taken when it is not, in order to instill fear; actually taking legal action while the restructure application is pending; debtors receiving up to 50 telephone calls from creditor representatives for one account; and creditors reluctant to even consider payment plans or restructures, then demanding payment first and once made, the restructure request is ignored and the next payment is then demanded in spite of the debtor pleading and breaking down emotionally at the creditors office…etc.
Here are the key factors creditors should understand and appreciate in spite of an individual being termed a ‘default client’…
1) Respect goes a long way and mutual respect is beneficial to both parties. I agree there are individuals who do not take responsibility for their debt situation but one cannot generalize. When those in dire situations and take time to present themselves at the creditors’ office, they deserve some respect.
2) We don’t know when we will find ourselves in similar situations. Creditor representatives could arrive at their place of work and find themselves redundant and then they would expect someone else to show them that empathy. The truth is what you put in, you get back and it is a fact no matter what your action. When you are in a position of strength to genuinely help someone in dire need, whom you can sense is truly suffering, then do the right thing as you are not immune to facing a debt-crisis yourself because there is no security in any form of employment today.
3) When you arrive at the doorstep of a debtor’s office to lodge your complaint about non-payment, you place that individual in a precarious situation where they could lose their job. Sometimes this action is necessary when a debtor displays no remorse for their situation, but in my client’s cases, they made recent payments and continue to maintain the connection awaiting their payment plan or restructure requests. Again using authority in these latter instances is in bad taste. Once the job is lost then all is destroyed.
4) When you know that you have been regularly communicating with a debtor, you know that a restructure application is pending; you have been officially notified that this is the case, then there is no need of threats. An amicable solution to any problem and maintaining an open civil line of communication to resolve these problems is the only route.
5) I commend creditors who go that extra mile to accommodate debtors with a decent affordable payment plan, or in the case of restructures with an excellent fixed interest rate, reduction of charges, extended tenures and lower payments.
6) One point to be noted is in spite of the individual being a default debtor and there are millions, creditors still receive their money if the debtor receives co-operation. For decades creditors, specifically banks, supposedly operate by stringent policies and principles, the ethical type, the human type, not the legislative type but it is very hard to find such individuals in banks these days who deal with debtors. Perhaps this should be scrutinized by Human Resource Departments to ensure transformation of the banks image.
7) Individuals could receive a windfall of expected funds, inheritance, any form of funding as a surprise and then that places them in the affluent, wealth management category where wealth management RM’s will pursue such an individual and I just wonder how loyal that client will be if it comes to that? So you have no idea how beneficial it could be to retain that client by way of an approved payment plan or restructure.
Life today is not just about how much you owe or the debtors’ situation or the creditors’ problem… Since the 2008 global financial crisis the world has shifted its paradigm to reaching out. It is no more just about money – it is about dignity and respect. It is important to help transform those in crisis. Reach out and try to make someone’s day as it will come back to you in a million positive surprising ways you could never imagine. Purposefully creating more misery for someone just to feed your ego is an indication of just what you continue to call into your life and unless you change, nothing will change for you.
[Note 1: Theda Muller is a UAE-based author of two books: Embrace Financial Freedom Volume One: 10 Proven Ways To Release Debt And Emotional Fears In Today’s Economy, and Volume Two: Releasing Fear And Bouncing Back From A Debt Crisis.She also conducts webinars and workshops on debt recovery.]
[Note 2: The views expressed are the author’s own and do not reflect in any way, the views of Emirates 24|7. Readers are advised to carry out their own due diligence before taking any decision.]
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