Good Cop-Bad Cop and Other Techniques for Small Business Collectors

Professional collectors should always be looking for new and more effective methods to use while trying to recover a debt. With these popular techniques, the professional collector can work as a part of a team, as an individual, or as a combination of the two in order to achieve success in debt recovery.

The Policeman

This joint questioning technique is a collection tactic which requires a team of two collection agents to play against each other. Each team member takes an opposing approach to try to solidify payment from the debtor.

When one of the collection agents takes a very aggressive and sometimes threatening approach, he is quickly perceived by the debtor as the ‘Bad Cop’ from whom no mercy can be expected. This strong-armed approach promotes a negative interaction between the debtor and agent and, if played out correctly, should pave the way for the Good Cop.

Once the stage is set for the Good Cop, this person will appear and play the role of one who is sympathetic, supportive and understanding, and, in general, show sympathy for the debtor who is being so blatantly mistreated by the Bad Cop. The Good Cop will also defend the subject from the Bad Cop, suggesting that he calm down and/or stop being quite so harsh. This allows a safe haven for the debtor, and he may feel that he can cooperate with the Good Cop as a result of this new formed relationship of trust and/or from fear of the Bad Cop. It is the intention of this technique that the debtor seeks to rectify the overdue account out of the bond formed with the Good Cop.

The Chinese Torturer

In ancient times it was believed that the Chinese used a method of persuasion that involved intermittent, yet persistent drops of water landing upon a person’s body. The ongoing persistence and randomness of this strategy was credited with obtaining results. This method of constantly delivering the message shows the debtor that the collection efforts are serious and will not stop until the recovery is complete. Keep in mind, the key to this approach was the unpredictability of when the water droplet would land on the person. Thus there was anticipation mingled with dread that slowly unnerved the person who was in a constant state of waiting. To be equally effective, the collection agent must then adjust his schedule so the debtor can expect a visit, but will never know for sure when and where the next contact will be made.

The Vacuum Cleaner Salesman

This personal approach is usually used when more familiar and routine attempts to make contact and recovery have failed. The goal is to arrive at the door and catch the debtor off-guard and unprepared. By not making an appointment, the agent sends out the strong message that he is prepared to make house calls over and over again until payment is tendered. Once the debtor understands how serious and inconvenient such impromptu visits can be, he will be more inclined to rid himself of this burden and make a payment.

The Clergyman

This soft approach can also be known as a Velvet Touch. This is used to recover an account while keeping a positive relationship between the client and debtor. This non-aggressive method gently encourages the debtor to reveal the reasons for the overdue account. Most times it requires the debtor to confide his financial situation to the collection agent and together devise a payment plan suitable for both parties.

Once you have determined which approach which will be the most effective with the debtor, you will be better prepared for any objections that the debtor may present while trying to repay his debt. Learning how to approach each debtor individually will dramatically increase your chances of collecting the debt.

Krista Walsh began her collections career with a local home heating company. After more than six years of business management and collection experience, Krista in 2005 opened KC Collect!, the first woman-owned and operated collection agency on the Canadian province of Prince Edward Island. Last year, Krista became the first Canadian to earn the Certified Financial Collection Professional (CFCP) designation.

KC Collect! provides collection services and accounts receivable management tools to small and medium sized businesses. KC Collect! also offers collection counseling, skip tracing, document serving, investigative research, and credit reporting. In November 2007, KC Collect! was the first Canadian collection agency to have an employee graduate from the International Center for Professional Collections.