Collection Training Manual
Training Expectations
Ask Lots of Questions
Everyone here will elevate their game when
you do
Participate
We’ll learn your style of collections when
you do
Help Your Co-Workers
Share Ideas. Never stop learning.
Be open to “change”
You may already do well. Look at this
training as adding weapons to your arsenal
Practice Non-Confrontational Collections
We want you to Out-wit and Out-maneuver
your opponent, don’t Out-yell
Understand Your Opponent
Otherwise, success is just luck
Identify (and overcome) obstacles
This training will make you better
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Table of Contents
Day 1
Page 4
Fair Debt Collection Practices Act
Page 21
Complaints and Compliance
Page 26
Developing Additional Information
Page 40
Developing Third Party Information
Day 2
Page 43
Collection Approach
Page 47
Collection Obstacles
Page 51
Negotiations Process
Page 59
Getting Balance in Full
Day 3
Page 69
Goal Setting and a Positive Attitude
Page 77
Scripts
Page 101
Procedures
Page 107
The Daily Program
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COLLECTING UNDER THE F.D.C.P.A
As a company, we are lawfully committed to complying with all Federal and State
Collection Laws.
We have earned the reputation as a company committed to excellence, maintaining a
high level of business integrity and providing quality service to our clients. All collection
and related personnel within our organization are expected to comply with the laws as
set forth in Title VIII and the state exceptions.
SECTION 801 – Title
Includes Federal Statutes relating to debtor credit. (i.e. Truth in Lending Act (Title I), Fair
Credit Reporting Act (Title VI), and the Equal Credit Opportunity Act (Title VII))
SECTION 802 – Purpose
“Eliminate abusive debt collection practices by debt collectors, to insure that those debt
collectors who refrain from using abusive debt collection practices are not competitively
disadvantaged and to promote consistent state action to protect debtors against debt
collection abuses.”
Explanation: Punish unethical debt collectors and create a level playing field for all
collectors.
SECTION 803 – Definitions
Commission – Federal Trade Commission (FTC)
Communication – Conveying of information regarding a debt directly or indirectly to
any person through any medium.
Debtor – A natural person obligated or allegedly obligated to pay a debt.
Creditor – Person who offers or extended the credit that is now being collected.
Debt – The obligation or alleged obligation of a debtor to pay money arising from a
transaction.
Debt Collector – Any person in which the principle purpose is the collection of any
debts, or who regularly collects or attempts to collect debts owed to another.
Also includes any creditor who in the process of collecting his own debts uses
any name other than his own attempting to collect on the debt.
Location Information – Debtor’s home address, home phone number, and place of
employment.
State – Any state, territory or possession of the US, District of Columbia, or the
Commonwealth of Puerto Rico.
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COMPLAINTS & COMPLIANCE
Complaint Definition
A complaint is any type of correspondence, whether verbal or in writing, from a
consumer or the consumer’s attorney, the client, or anybody representing the consumer,
which would indicate the consumer’s displeasure or dissatisfaction in the way their
account was handled, or by the way they were treated by a collector and/or by the
company.
Complaints are tracked and reported to most clients on a regular basis by our
Compliance Department. It is our intent to maintain and preserve the image of our
clients and company every day and in every way.
The following complaints are violations of the FDCPA or State Regulatory violations.
These are the most serious types of complaints.
Harassment – Repeated contacts or collection tactics employed solely for the purpose
of aggravating or antagonizing a consumer or third party.
Misrepresentation – Stating or implying to a consumer or third party that you are
someone other than yourself (an attorney, the client, from a government agency, etc.).
Legal Threats – Threatening to take some form of legal action, such as a lawsuit,
garnishment, or imprisonment without the actual intent or ability to do so.
Early Check Deposit – Depositing a postdated check before the inscribed date. Not
honoring a consumer’s request to hold a check for an additional period of time past the
inscribed check date.
Foul Language – The use of obscenities, ethnic slurs, or any comment, which could be
construed as offensive.
Repeated Calls – No more than one contact with the debtor during the day (unless the
debtor agrees, or if doing valid follow up on a promise to pay.).
 Calling back prior to five business days after a debtor terminates a call (hang up)
prior to the conversations conclusion.
 Causing a phone to ring solely for the purpose of irritating a debtor or third party.
Third Party Disclosure – Releasing any information regarding the debt to any person
other than the consumer, spouse, or attorney.
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DEVELOPING ADDITIONAL INFORMATION (SKIP TRACING)
WHY SKIP TRACE?
Skip accounts tend to be more collectable than other accounts due to the fact that once
you reach the debtor, you may be the first one to contact him/her with regards to a debt.
An account with good numbers, (phone numbers we know to be valid to reach the
debtor), may have been contacted previously by the creditor before they referred the
account to you. An account with bad numbers, (ones in which the debtor cannot be
contacted), can still be of use. The debtor may have lived at the number, but moved. If
the job number is “bad” someone there might know how to reach the debtor or give you
another lead.
Consider the possibility that the previous agency that worked these files may have only
used a high volume call strategy. Many won’t waste time, money, and their resources
when their goal is to skim accounts for easy money.
Before beginning in depth skip tracing, three (3) basic skip-trace sources should be
contacted.
The debtor’s relatives, or other third party sources,
Directory assistance operator, or equivalent web-based directory assistance,
The debtor’s current, or former, place of employment
These contacts are generally less time consuming than others. Time is an important
factor in both skip tracing and collections in general. Your overall success as a collector
will depend on the number of debtors you contact, which will directly correlate to your
skip-tracing ability. You will find that the best collectors not only are the best skiptracers, but that they enjoy skip-tracing as well.
INFORMATION THAT CAN BE LEARNED THROUGH SKIP-TRACING:
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The debtor’s location
The stability of the debtor’s employment
The debtor’s ability to pay
The debtor’s past paying habits
The debtor’s relatives location information
HOW TO OBTAIN THIS INFORMATION FROM A THIRD PARTY SOURCE:

Use a tone of voice that will not build a wall of mistrust. You should avoid putting
people on the defensive

Be friendly, casual, and ask leading questions. Almost like you’re trying to get in
touch with a buddy

Ask “wrong” question; people love to correct you. For example, if you don’t know
where a debtor works, you can ask, “Does he still work at the post office?”

Avoid letting the source ask you questions (you might get backed into a corner.)
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DEVELOPING THIRD PARTY INFORMATION
Developing third party information can be extremely important in contacting the
debtor and resolving the account. Below are guidelines to follow when speaking with
a third party. We will go over this more when we begin discussing talk-offs
When leaving a message with a person who resides with the debtor ask these
questions:

Ask with whom you are speaking with, if it is the spouse and State
Restrictions permit, discuss the account and go for the balance in full.

If you are speaking with a small child, ask how we can reach the debtor
and/or what time the debtor will be home (children are great for getting
information on the debtor, remember not to upset the child, this could force a
complaint.)

Ask if there is another number to reach the debtor.

Ask the name of the company where the debtor works.

Ask what the best time to reach the debtor is.

State that you would also like to send the debtor a letter, and verify the
address.

Leave your message. Advise the best hours to reach you, and leave the
reference number.

If the person you are speaking with asks why you are calling ONLY state that
it is a personal business matter.
When leaving a message at the debtor’s place of employment ask:
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Ask with whom you are speaking.
Ask what shift the debtor works.
Get the full name of the company.
Ask if there is a direct line, extension, or what department the debtor works in.
Leave your message, and advise the best hours to reach you.
If the person you are speaking with states the debtor no longer works there, ask
if they know where the debtor works now, or do you know anyone who would
know where the debtor is working.
NOTE: Do not be afraid to ask questions. The worse they can do is refuse to give you
information.
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COLLECTION APPROACH
Once the debtor feels you will listen, and that you do understand their situation, you are
ready to begin to ask questions. By listening, you are attempting to avoid alienation from
the debtor. Instead, you are encouraging the debtor to speak freely about their situation
without the fear that you will reject anything they have to say. More importantly, the
debtor will feel you are open to solutions to resolve the debt.
Avoid asking questions that promote excessive discussions about the debtor’s life story,
like “why did you stop paying?” Don’t stop the discussion if it starts. It’s important that
you learn ways to get the topic of discussion back where it should be.
Negotiations and Rebuttals - As you know there are thousands of excuses you hear as
to why the debtor cannot pay. Some are valid. Some are not. Your ability to listen, to
anticipate, to read between the lines, and overcome any objection is the key to
successful negotiations, and the best way to avoid complaints.
Rebuttals are essential in collections. By failing to acknowledge a debtor’s reasons for
not paying, it is more likely that the debtor will continue to think that way after your
conversation has ended. For example, perhaps a debtor has indicated that he is not
paying this debt because his ex-wife was supposed to pay in accordance with a divorce
decree. If you simply ignore this comment, and continue to demand the balance without
addressing this issue, then the debtor is likely to hang up still believing that his thought
process is correct. However, had you used any number of rebuttals for this common
debtor objection, then the call would have ended with him being made aware of the fact
that a divorce decree is not binding to his creditors.
Communications – Your voice can be your most effective tool. Pay attention to
your tone of voice. Do you sound pushy and offensive? Do you find yourself raising your
voice frequently? Your tone of voice is just as (if not more) important as the words you
choose to use. A calm and rational collector is much easier to communicate with. It also
builds a sense of trust with the debtor, and aids in getting the debtor to open up and
discuss the situation.
Develop good listening skills. You will collect more money with your ears then you will
with your mouth. This takes practice, so be patient. Debtor’s will provide you with
valuable information and be cooperative if you listen to what they have to say.
If the debtor becomes irate and/ or uses profanity keep your emotions in check and
simply state: “I apologize if I said something to offend you. Can we take a step back and
start over?”
DO NOT continuously interrupt the debtor while he/she is speaking. It is irritating as well
as violating FDCPA laws.
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COMMON COLLECTION PREOBLEMS
There are various different responses that a collector will hear from debtors. Some are
positive responses; most are only stall tactics. It is up to the collector to judge what they
are, and if possible, to change the stall tactic into a commitment to pay. Just because
there is a reason, doesn’t mean that the debtor is going to be released from this
obligation. Many objections can be easily overcome by well-trained collectors.
Collectors often need to tell the debtor that despite their current situation, they do have
the capacity to pay. A good collector can show them how to accomplish this goal.
Illness – If the debtor states the account has not been paid due to illness, find out who is
actually ill. Is it the debtor, the spouse, or one of their children? If the debtor is not the
one who is ill, ask how the illness is affecting their ability to pay on the account. Find out
if the illness is really the cause of non-payment, or is it an excuse/stall tactic to avoid
paying the debt.
The next step would be to find out the extent of the illness. Is it a minor or extensive
illness? If it is a minor illness this should not affect the debtor’s ability to pay. Make
payment arrangements on the account until the debtor is back to work, and can pay the
balance in full. If the injury or illness is serious, help the debtor find assets or other
income with which to pay the debt.
If the wage earner (debtor or spouse) is ill then you may want to get the answers to
these questions:
 Where do they work?
 How long have they been off the job?
 When do they expect to return to work?
 Are they receiving disability benefits, and how much?
 Do they have insurance benefits to cover medical expenses?
 When does their spouse get paid?
Asking questions is extremely important since the debtor’s answers will aid the collector
in which direction to go in order to get the account paid, or to decipher if the account
CAN be paid.
As you are working with the debtor’s that have medical problems avoid getting caught up
in lengthy conversations about their medical history. Offer empathy, however, always
bring the debtor back to balance in full being due. Ex: “I can imagine how hard it must
have been, however, there is still the matter of this debt…I hope you are soon back on
your feet, and this debt in the amount of $____, is extremely delinquent, and we need to
make payment arrangements on the account.”
NOTE: If we are speaking to the debtor someone is paying their phone bill, which
means there is income coming into the household. What we want to know is from where
(spouse, parent, roommate etc.) the money is coming from, and how much outside
income there is.
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The TALK-OFF
The collection call (aka: the Talk-Off) is made up of three phases. The OPENING, the
NEGOTIATION, and the CLOSING phase. Below is the outline of each. We will discuss
talk-offs in far greater detail later.
The Opening Phase – The opening is designed to verify the debtor, state the purpose
of the call, and set the negotiation stage. The opening should include the following:
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Verify that you are speaking with the debtor (or the spouse if law permits).
Identify who you are.
Identify the Original Lender
State the balance in full and that it is now due in full.
Pose two questions to the debtor in order to gain control and move into the
negotiation phase
The first impression the collector makes will set the tone for the rest of the call. The
opening needs to come across with confidence, so the collector can take control of the
conversation. The opening should always end with the collector seeking and guiding the
debtor to respond to a “yes” or a “no” answer to his two questions. This will allow the
collector to move smoothly into the negotiation phase.
The Negotiation Phase – After the collector makes the demand for the balance to be
paid, the talk-off will move into the negotiation phase.
Be prepared for your negotiations. Know your client so that you will know the options
that you are capable of extending to the debtor. Your offers should not fluctuate much
from debtor to debtor, unless the client fluctuates. If you get into the habit of presenting
the same options over and over, your presentation of those offers will sound smooth and
“etched in stone” in the debtor’s mind.
DO NOT attempt to rush through this phrase, instead hold your position using nonspecific objections, and account development to get your debtor to resolve the account
in the manner in which you desire.
Most collection agencies use either a “motivational” or “negotiation” approach when
dealing with debtors. The type of approach can make the difference between an account
that gets paid in full, and a debtor who refuses to take the collector’s calls. The collector
giving the debtor reasons to pay characterizes the motivational approach. The
motivational method varies greatly, and can become a confrontational approach.
Collectors often attempt to motivate the debtor by insulting and belittling the debtor in an
effort to “wear them down”. This is not permissible and will only alienate the debtor, and
in most cases will violate all FDCPA, and company policies.
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GETTING THE BALANCE IN FULL
The first thing a collector needs to remember when speaking with the debtor is the
delinquency of the account, along with the balance. Too many times a collector will
accept payment arrangements on an account without finding out if the debtor can pay
the balance in full, and monthly payments are accepted too easily.
The collector always needs to remember that the debtor has already had the chance of
making monthly payments, or paying the balance on the account. The debtor had an
open account, and did not make at least their monthly payment, or keep enough funds in
their checking account. That is why the account is here. Our job is to collect the
balance in full. Our clients have already paid the manufacturer for the merchandise the
debtor purchased, or for the services rendered. You need to discuss with the debtor the
delinquency of the account, that fact that they have not paid for a lengthy period of time.
In essence the debtor had the chance to pay the balance or make monthly payments
and did not, they have now lost that option. Besides, our clients have hired us to collect
the balance in full.
Always remember that the debtor will only want to pay the least amount as possible per
month. They do not want payments on the account to be an inconvenience to them or
their daily spending. You as a collector, want to collect the absolute highest dollar
amount on each account, and should not be concerned with the debtor’s daily spending.
This is why you always start with going for the balance, so if you have to work your way
down the ladder of collections you are still getting the highest dollar amount possible per
account.
By following the collection formula you will be covering several different areas that need
to be done in order to work each account to its fullest. Of course, the perfect scenario
for collections would be to collect the balance in full on each and every account. This
would give our clients great satisfaction in hiring Portfolio Management, LLC. the
department would have the highest collection rate per account, and each and every
collector would be taking home a very large bonus check. As we all know perfection of
this type is virtually impossible; however, we can come close to his if we as collectors
stay focused, develop each account to it fullest, follow the collection formula, and go for
the balance in full.
COLLECTION FORMULA
Fresh Portfolios
1. Balance in Full
Settlement
2. Balance over two payments
Lesser Settlement in pmts
3. Balance over three payments
PPA with interest stopped
4. Settlement in Full
5. Settlement over two payments
6. Down payment with monthly payments
7. Monthly payments with post-dated checks
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Older Portfolios
1. Option One:
2. Option Two:
3. Option Three:
SETTING GOALS AND KEEPING A POSITIVE ATTITUDE
To be an effective collector, you must have a positive attitude. You must truly believe
that what you are doing provides a necessary, and appreciated contribution to your
company and the clients, as well as a positive solution to the debtor’s problems. Not to
mention a nice bonus check. A positive attitude along with the two primary assumptions
of collections will bring results of success to the collector. These two assumptions are:
a) The debt is owed
b) The debt will be paid
When a collector stays focused on his/her accounts they are not giving themselves the
chance to fall behind in the amount of money they are generating. As long as you stay
on top of your goals and fees for the month you will succeed.
The primary goal of a collector is to collect as much money as possible. Many collectors
do not have any other goals set outside of that, and when they don’t collect, or have too
many broken promise to pays, they do not know what to do to make their month
profitable. This is why each collector should set manageable daily, weekly, and monthly
goals to prevent that from happening.
There are different goals a collector can incorporate into their daily routine. Daily goals
include setting a certain number of telephone calls per day, the number of promise to
pays, total number of payments, total number of contacts etc. The best way to set a
daily goal of your budget for the month is to take your monthly goal and divide it by the
amount of business days for the month. Ex. In the month of October there are 20
business days. Your budget is $6000. If you divide the $6000 by 20 you will see that
you will need at least $300 a day to come into the office in order to hit a 100% of your
goal. Keeping this in mind, the collector will need to make sure that $900 a day is set in
promise to pays. As a collector there will be days where far more comes in, as well as
days where far less comes in. As long as you keep track of this daily goal you will be
able to determine how hard you have to push in order to hit your perspective number.
By doing this, you will reach new heights. The more goals you set, the more you
achieve.
We have all heard the term “Use your time wisely”, “Work smart not hard.” Collections
are no different. Production is an important part of setting and maintaining goals. A
collector’s production will be evaluated based on the number of accounts worked per
day, the number of contacts made, and the number of promise to pays per day, and the
dollar amount of the promises. To make sure you reach your goal, one call should be
made per account.
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PROCEEDURES
SETTLEMENTS:
Settlements are a privilege extended to us by some of your clients to assist in quicker
liquidations. In order to retain this availability, we must adhere to the particulars of the
settlement requirements. The following are the standard settlement requirements:
1. Account must have SIF ability as indicated by management.
2. The offered settlement amount must be at or above the listed amount and
offered based on the current balance (allowing for interest increasing, if
necessary).
3. Any settlement that is broken in payments must be completed within 30 days of
the first payment. All settlements must be properly documented (and approved
by supervisor)
4. If a settlement is offered that has been a returned check, then any service
charges must be added to the settlement amount offered.
NOTES:
1. Always start higher than the minimum settlement amount to leave room to
negotiate.
2. Never start off by offering a split settlement; again leave room to negotiate.
Make certain the client allows for 2 part settlements.
3. If the settlement is going to be split, attempt to get entire amount represented
with postdated checks.
4. If the consumer is requesting a letter to confirm that they have a settled an
account, tell them to send you a self addressed stamped envelope and we will
mail them one.
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