Monday, November 7, 2016

Gun's E-Z Own: Doing Collections - Door Knocking

Here at Gun's E-Z Own, because that we are giving loans out for our customers to purchase furniture and using that furniture as collateral, we must do collections. That is we call customers, we send notices and letters to customers, we door knock customers and we take customers to court and get Sheriff's replevins (legal term for repossession).

We do have a matrix that we follow, and we are not looking for Neo either. With this matrix listed below, it helps keep customers payments timely and losses down:
Courtesy Phone Call
Letter / Phone Call
2nd Letter / Phone Call
Door Knock
Final Letter
Door Knock for Repossession
Court

I have been doing this for almost 20 years. (20 years in Feb of 2017) and dealt with all types of customers when it comes to collections. Today, I am going to do an overview of what Gun's E-Z Own does when out and about door knocking.

You may have noticed that I said Door Knocking. That is the phrase we use when we go to a customer's place of residence and, wait for it, . . . knock on their doors.

In the great state of Minnesota, there are laws that allow finance companies to do "self help" repossessions. Which in turn means, we are allowed to go up to customer's doors and ask for payment or the property. This does NOT mean we kick the door down and break in. Which, to be honest, I would like to at times. But I don't and won't. First off let me say that we reserve door knocking for those customers who refuse to call us back or make a payment. So if a customer has been contacting us we don't go to there doorstep unless they just have not come through with their five broken promises to pay us.

And when we door knock, it is not nearly as exciting as what you see on TV. If the customer can't afford their payment any longer, they are more likely to give up that Sofa. Those guys on TV repossessing a car if a different story. Take away a person's car and you pretty much take away their lively hood.

When going to a customers home, I always look at (not into, because that would just be creepy) the windows to look for curtain movement and listen for sounds for someone moving around or maybe a TV on. We look at the surroundings to make sure someone is still living there. Why is that? Because we have people move on us and we want as much information as we can get.


We also have to look out for mean dogs. Most of the dogs are friendly and I can get them to settle down and maybe pet them. Maybe.

From there I have a little carrying case that has my notices and envelopes in it. I knock on the door and listen for movement. I love it when the dog inside goes off on protecting the home. Then I know if the customer is home, they can't say they didn't hear me, because that dog will wake them up and/or let them know someone is there. If I don't hear anything, I will knock again and begin writing out what I need to on the notice. As you can see we use two different notices depending on how far behind the customer is. We have created a fill in the blank notice that makes it quicker and to get the legalize wording correct every time.

So then if there is still not anybody answering the door, Like Sheldon Cooper of the Big Bang Theory, I knock a third time. At that point I will leave the notice in an addressed envelope on the door knob or something that will hold the envelope.

Now if you are using this blog for help hints, DO NOT leave the notice in the mailbox. That is a Federal Offense. Just don't do it.

Once I hang the door notice, I just go back to my vehicle and head off to the next door. But what if someone answers the door?

If someone answers the door, I politely ask for the person I wish to speak to. If they are not home, I introduce myself and leave the door notice in an envelope with that person.

Now if the customer is home, I have a cordial conversation with them, and let them know why I am there. (They already know) Sometimes I get a payment, sometimes I get the property, sometimes I accept a promise of payment. Each situation is different.

The key to face to face collections is to treat people with respect. Everyone has a bad month. Bad things happen like car accidents and surgeries. If you poke the bear, all you get is a big load of nothing, and angry customer who is still delinquent and now you are in a upset state. Life is too short to go down that street.

Just talk to the customer with respect and explain to them what the next step is if they don't pay you. There is no reason to get all up into someone's face. If things do escalate, remember DO NOT BREACH THE PEACE. If you feel you are going down that road, Just listen to Kelly Clarkson and Walk Away.

Once again I just gave an overview of how I handle door knocking for collections. I live in a small town and this works for us. If I were to write everything down, this blog would be about 10 pages long and you would have lost interest before the end of page one.

I hope you found this interesting. Remember to find us on Facebook and visit our website at www.gunsezown.com for specials and see what we have in stock.

Have safe and blessed day.


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