There’s a lot that goes into debt collection, and documentation is a big part of the task. Documentation isn’t just paperwork, it’s a way to showcase every interaction, decision, conversation and solution that comes up during the debt collection process. Whether you’re collecting a commercial debt or a personal debt, a large debt or a small debt, proper documentation is key.
The Benefits of Good Documentation in Debt Collection
You might find yourself faced with a dispute during the debt collection process, but good documentation is there to protect you. It’s a way to showcase what you have done and what has been agreed, and it highlights that you have done everything by the book. If a dispute arises, documentation is proof that you are telling the truth. If you find yourself in a disagreement about payment terms or the validity of a debt, documentation can help you to solve the problem. With everything documented, disagreements are easily solved, as there’s evidence to refer to.
Trust is a huge part of debt collection, and documentation is a way to show how trustworthy you are as an agency. When you have detailed documentation of communications with debtors, you have proof of what’s been discussed, what they have agreed to and your intended next steps. With everything documented, everyone involved in the debt collection process can trust what you say.
How to Ensure Good Debt Collection Documentation
- Find a Style That Works for You – There are a few different ways to document debt collection, so find a style that works for you. You might want to keep digital records, or you might prefer to have everything detailed using a pen and paper. Whatever you choose, consistency is key.
- Be Thorough and Detailed – When you are documenting the debt collection process, be as thorough and detailed as possible. It’s better to document too much than too little. Everything should be noted including debtor information, communication, payment agreements and agreed next steps.
- Include Every Interaction – Regardless of how small or minor, include every interaction that you have with a debtor in your documentation records. This includes making a note of every telephone call, letter, email or in person conversation.
- Keep Documentation Safe – Documentation in debt collection often includes debtor information and personal details, so it needs to be kept safe from data breaches and privacy concerns. All of your documentation should be stored securely and it should only be accessible by those that need to know.
At Cobra Financial, we know how complex the debt collection process can be, which is why we prioritise documentation. When you choose us as your debt collection experts, you can sit back and relax, knowing that every interaction is detailed and well documented. We can then refer back to this information whenever we need to, strengthening your case and streamlining the debt collection process. Contact us to find out more.
