Communication & Negotiation Skills Flashcards

A collector first asks for payment in full, then offers a payment plan when the debtor refuses. What is this negotiation sequence called?

Answer: Starting high and stepping down (a concession ladder)

Asking for the full balance first and conceding in planned steps gets the most recovery while keeping the debtor engaged.

Under Regulation F, collection calls are presumed to be harassing if a collector calls a consumer about a debt more than how many times in seven consecutive days?

Answer: 7 times

Regulation F presumes harassment when a collector calls more than seven times in seven days, or within seven days after a phone conversation about that debt.

Which statement is the BEST example of active listening during a collection call?

Answer: "I understand your car repair set you back this month — how much do you have left after your essential bills?"

Active listening acknowledges what the debtor said and builds on it with a relevant follow-up question.

When negotiating a lump-sum settlement, why should a collector stay within the creditor's authorized settlement range?

Answer: Offering more than authorized can bind the agency to a loss or breach its client agreement

Collectors act as the creditor's agents, so going beyond the authorized range can breach the client contract and cost money.

In a business-to-business (commercial) collection call, who is usually the MOST effective contact for getting payment?

Answer: The decision-maker with authority to approve payments, such as the controller or accounts payable manager

Commercial collections move fastest when the collector talks to the person who can actually authorize payment.

A debtor says, "I'll try to send something next week." What is the BEST way for the collector to respond?

Answer: Turn it into a firm commitment by asking for a specific amount and date

A vague intention should be turned into a specific, measurable promise that the collector can track.

Which tone and wording is MOST appropriate for a written collection letter?

Answer: Clear, factual, and professional, with a specific call to action

Clear, professional letters with a specific request get responses without risking misleading or abusive claims.