Search

9.5 Common Debt Collection Myths


Have you heard of Karl Marx? If not, and you work in business, it might be worth doing a Google search on him. To read this blog you might be pleased to know you do not need to know his life history or a chronology of his most notable works. Rather, the most important tenet of his legacy that we want to draw attention to is that Karl Marx is known for his interest in a philosophical view that society had become measurable by its materialistic success.


We at JSP Credit Management wonder if much has changed on that front since the early 19th century when Marx started writing about such matters. No matter where we turn, we seem to find evidence that capitalism is ‘alive and kicking’ just as much now as it was when Marx first started publishing works talking about it nearly 200 years ago. Money matters seem to be inextricably linked to politics, cropping up in political debates regularly. It has also saturated social media where exhibitions of extraordinary material success appear to be a solid strategy for increasing your “following”.


We, therefore, believe, like Marx, that this sharp focus on financial affairs has also given rise to inequalities within society, even determined by labels today such as “income band” where people are routinely asked to identify themselves by the size of their salary. Or studied and defined by their “socioeconomic status”, the results of which may go on to influence policy locally, nationally, or even globally. What it has also done is produce a stigma around money and we know that stigmas can give rise to discrimination.


As a company that fully embraces equality and diversity, JSP Credit Management find this a slightly uncomfortable thought. We do not intend to, neither are we capable of leading the charge on enforcing change to models of social structure which have existed for hundreds of years (at least not yet!), and we do not expect capitalism to disappear over the next few days following the release of this blog. But what we do want to do highlight some of the common misconceptions we have come across in our experience of working in finance for many years.


The debt collection industry in particular has been subject to a great deal of publicity and social discourse, which we think is attributable to the aforementioned stigma associated with money. Firstly, because people do not like to be exposed for having financial problems. It is shameful due to hundreds of years of socially constructed ideas about the way society should be classified. Secondly, that same problem can give rise to unprofessional behaviour from those who work within the debt collection industry, ironically because they are target driven and working to achieve a financial bonus at the end of the month, at the expense of moral, ethical, and legal requirements and expectations placed upon them as professionals. So here are 10 myths we believe need to be challenged:


1) Debt collectors are always cold-hearted and ruthless

2) Debt collectors cannot be reasoned with

3) Debt collectors will just go away if they are ignored

4) Debt collectors are unaware of their legal obligations

5) Debt collectors do not care about their legal obligations

6) Debt collectors will try to collect anything

7) Debt collectors are just chasing targets

8) Debt collectors do not do their homework on a debt(or)

9) Debt collectors cannot do anything if they are ignored

10) JSP Credit Management is the best….wait….what?


On a more serious note though, JSP Credit Management started because its owner Joe Postings fell into doing debt collection by accident at the tender age of 19 years old. Voice juddering, red-faced as he introduced to his new colleagues. But what happened over the years was that he began to invest in the deeper role that debt collection plays on society, and for us JSP Credit Management now it has a lot more to do with just creating more money for people.


The worst-case scenario is that businesses will, unfortunately, have to cease trading in cases where they are not paid the money that they are owed and the consequences of that are more than just a change to the status of a company on the Companies House register. People lost their jobs, they lose their main income in the vast majority of cases and financial struggles will often follow. The link between financial problems and mental health problems is hardly debatable. The consequences, as we see them are therefore serious.


We are here to do a bit to help change that, so if you have been struggling to get an invoice paid and would appreciate the support of a team who pride themselves on operating in a way that is mindful of the factors discussed above then visit our website at www.jspcreditmanagement.co.uk and contact us to discuss your needs. We operate on a no-win-no-fee basis for bad debt recovery and our credit control and credit risk services can be ordered via our website with the littlest of hassle.




57 views0 comments