In the BHPH/LHPH independent auto industry, collection managers are crucial for the financial health of the business. They don’t just focus on getting overdue payments, but also play a vital role in communicating well, providing excellent customer service, and making sure the business follows the rules laid out in the Fair Debt Collection Practices.
Collection managers take the lead when modeling how an excellent collection person should perform. Employees must understand how to be professional when dealing with customers who are having cash flow issues. Showing empathy is crucial, and collection associates need to learn to handle each customer individually as each has their own unique challenges.
Elizondo will help dealerships create effective processes during the Collections Management class Dec. 11 in Dallas. NIADA’s BHPH Collections Management course is a comprehensive 7-hour workshop and will be conducted in a small classroom setting. Registration is open for the class from 9 a.m. to 4 p.m. Dec. 11 at the Courtyard Dallas DFW Airport.
In the BHPH industry, dealing with customers who can’t or won’t pay is monumental. Good communication skills are very important to handle these situations well. Collection managers should stress the importance of listening actively, making sure customers feel heard and understood. By being understanding and acknowledging the customer’s unique circumstances, collection associates can build a good relationship that helps find a solution.
Customer service in the BHPH business is about more than just getting payments. It means helping customers find solutions to their money problems. This might involve working on payment plans or offering temporary relief for mechanical issues. The main idea is to approach each customer interaction with a focus on what’s best and get the customer back on track.
A big part of a collection manager’s job is to make sure everyone follows the rules in the Fair Debt Collection Practices Act (FDCPA). Breaking these rules can lead to legal issues and harm the business. Collection managers need to keep up with the latest rules and make sure collection associates know how to follow them. Clear communication is a big part of following the rules. Collection managers must stress the importance of explaining repayment terms clearly. Regular checkups by the collection manager can help find areas that need improvement and make sure everyone is following the rules.
Collection managers need to come up with good plans to solve conflicts and negotiate with customers. This means understanding the customer’s money situation, suggesting realistic solutions, and making the customer feel like they are in a relationship, not an enemy. Well-thought approaches that think about each customer’s situation can make it much more likely to find a solution that works for everyone.
Learning how to negotiate and calm things down is crucial for collection managers. Training programs should focus on teaching associates how to stay calm, handle tense situations, and steer conversations toward solutions that help both sides. By giving collection associates the skills to handle tough talks, collection managers can make sure associates and customers have a good experience.
In the ever-changing environment of the BHPH/LHPH independent auto industry, collection managers serve as the frontline ambassadors for the business. Their ability to effectively communicate, provide exceptional customer service, and safeguard compliance with the FDCPA directly impacts the company’s success. By placing employee training in communication skills, customer service, compliance, and negotiation strategies, collection managers can elevate the performance of their team, build positive customer relationships, and contribute to the overall financial health of the business to develop a happy customer.