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The advent of online ride-sharing services has taken a massive toll on the car rental industry! Car rental companies are facing severe competition with the low operating costs of Uber, Lyft, and Turo, resulting in a substantial increase in accounts receivables.
Some of the most common points of headache faced by car rental companies are issues of chargebacks, illegal parking fines, and vehicular damages. However, if not taken care of, these issues are soon going to become bad debts, resulting in cash flow hindrances, and in worst cases, bankruptcy! So, what’s the solution to this?
Let’s explore this article till the end to find out the effective ways to tackle debt collection disputes, and how can a debt collection agency in Houston help.
Handling Debt Disputes in the Car Rental Industry- Best Hacks
If you own a car rental company and are facing severe debt collection disputes, here are some ways you can adopt to protect your business-
- Understand The Dispute Thoroughly
The first and foremost step to handle a dispute is to understand it properly. This means that you have to go through all the necessary paperwork and gather information that’s relevant to the dispute. This will include the amount of debt, disputes over the accuracy of the debt (if any), and/ or disputes over the time of the debt.
The moment you start to understand the debt clearly, things will start to fall into place. Now you can come up with strategies to settle the dispute.
- Establish Communication With The Customer
There are an array of reasons why debts occur in the first place. So, rather than accusing the customer from the very first, try to establish clear communication with them. State the terms and conditions of the debts clearly and concisely, maintaining transparency.
On the flip side, if the customer has something to share, listen to them with all ears! Maintain an approachable attitude, and try to resolve the customer’s issues rather than starting a debate. This reflects professionalism and may urge the customer to pay off their debts effectively.
- Avoid Aggressive Tactics
The debt collection industry has a bad reputation in itself for using aggressive tactics to extract debts from customers. This affects client-business relationships, and might also give rise to legal issues if the customer decides to go for a trial with blackmailing or harassment complaints!
Instead, what you should do, is abide by the ethics, and maintain a friendly demeanor. So, rather than going all rude, express your genuine concerns and try to provide the best advice to the customer to help them get out of this situation. This magically helps resolve debt disputes and also helps maintain healthy client-business relationships.
How Can a Debt Collection Agency Help?
Now that you’re aware of the best ways to deal with debtors in the realm of car rentals, let’s take a look at how a commercial debt collection agency can help-
- They Can Make Use Of Skip-Tracing Methods
Skip tracing is a method or procedure used by debt collection agencies to locate individuals who have defaulted their debts, and have relocated to a different place.
Skip tracing enables these professional agencies to track and locate these debtors, and contact them in an attempt to recover the unpaid debts. This includes placing phone calls, sending letters, or even hiring a private investigator to get details of the whereabouts of the debtor.
- They Can Help In Effective Follow-Ups
Follow-ups are always crucial, especially at the time of repayment of bad debts. This can settle a majority of disputes before they turn awry. Hiring the best small business collection agencies can be a great move, as they have a dedicated team of experts who specialize in follow-ups and can carry out negotiations with debtors. This increases the chances of successful debt recoveries by several notches.
- They Maintain Compliance
Supposedly a customer has relocated without clearing their dues. Now, you can’t locate them, and even if you do, you can’t jump to conclusions and accuse them of debt repayment failures as you may violate state-wide regulations, causing you to suffer chargebacks!
Instead, hire a professional commercial collection agency in Houston, Texas for the job. They are well aware of state-wide regulations and can maintain compliance while reminding the customer of their dues!
To Conclude
Debt collection in the car rental industry is a mammoth task in itself! So, rather than trying your hands on it, it is better to hire reputed debt collection agencies near me like Nelson Cooper & Ortiz, LLC, which has dedicated and expert professionals to effectively handle such tasks with great efficiency, and ensure positive results.
