Comments on: More on bad, but well meant, advice

By: The Journal Blogger

The Journal Blogger — Wed, 14 Jan 2009 18:58:36 +0000

I think you’re missing my point. What also happened in the early eighties and early nineties was that collections agencies had so much trouble collecting on those overdue payments that many of them folded.

In general, collection agencies work on a contingency basis. If the debtors have no money, so that collections issues end up in the hands of lawyers, then the collection agencies don’t make money. My husband tells me that enough consumers are trying to pay down their debt right now that retail houses are not doing too badly. In commercial collections, though, agencies are laying off workers and closing their doors.

By: Mary Schmidt

Mary Schmidt — Wed, 14 Jan 2009 18:44:55 +0000

Two things:

1. If they’re not paying, they’re not paying – even if the collection agency calls. So, the agency won’t get paid (To Dawn’s point.) A recent article in our local paper interviewed a collection agency – and – guess what? They’re suffering. If people don’t have the money – or they’re having to choose to pay which basics – there’s not much a collection agency can do.

2. A great example of why I tell clients they need to do some of their own research to learn their potential customers’ industries. Listen and lurk. Read industry publications. Make a few phone calls. Experts don’t know everything.

Mary Schmidt’s latest blog post: Somebody Had To Invent File Cabinets.

By: LEADSExplorer

LEADSExplorer — Wed, 14 Jan 2009 16:28:30 +0000

@ Dawn Rivers Baker: Thanks for referring to our blog post.
In times when there is less money available, companies do delay there payments. In order to get paid on time, suppliers engage collecting agencies (that happened in the early eighties and early nineties).

In case if there is no money at all, then you could be right.