STRATEGIES

AND TACTICS
OF
COLLECTION
BY: Ma. Theresa V. Cabigting
1. DEFINITIONS
➤ A. Strategies- Plan of action
➤ B. Tactic- The behavioural maneuvering

2. FACTORS TO CONSIDER IN
UNDERTAKING A COLLECTION TACTICAL
➤ A. The Personality of the parties
PLAN
➤ B. Power bas of creditor and debtor

➤ C. Time constraint
➤ D. Debtor’s or creditor’s values as to strategy or tactic to be use
➤ E. What is at stake?
➤ F. Expertise or forte of creditor or debtor.
➤ G. Possible legal consequences
 WAYS
OF
COLLEC
TION
STRATE
GY
- Is to achieve a positive
collection
 CONFRONTATION OR COMPROMISE
➤ 1. Avoid giving the first concession
➤ 2. If concession must be given, give the minor one first
➤ 3. In giving, give slowly and grudgingly
➤ 4. Try not to show two concession

COLLABORATION - BRINGS BOTH

PARTIES TO SOLVE THEIR
PROBLEMS.
 COLLECTION TACTICS
➤ DOUBLE TEAMING
➤ THE TURN-DOWN
➤ THE BAD BOSS
➤ THE HIGHBALLING
➤ FIGHTER’S STANCE
➤ FEIGNING ANGER
➤ PLACATION (‘HIMAS’ TACTILE)
 COLLECTION NEGOTIATION GAMBITS
-DEMAND FOR MAXIMUM PAYMENT, UNDER THE
“You can always come down, but never go up.”
CONTRACT
➤

➤ You may get what you have demanded

➤ It raises the debtor’s anxiety and fear for the repercussion
of not paying
➤ It provides a graceful face saving mechanism for egoistic
conflicts;
➤ It creates a perception for the debtors to fell he has won-
some concessions;
1. HOW MUCH MORE THAN WHAT YOU DEMANDED IS
ENOUGH
➤ A. Set a range - how much more than you expect to collect should you demand for.
➤ B. React with “surprise/shock”
➤ C. Play the no-Nonsence collector

2. PLAY RELUCTANT COLLECTOR - TO REDUCE THE

NEGOTIATING RANGE BEFORE THE REAL COLLECTION
NEGOTIATION STARTS.
3. STICK TO ISSUES OF THE DEBT/OBLIGATION - WHEN THE
DEBTORS IS UPDET O ANGRY, FOCUS ON THE ISSUES OF
THE OBLIGATION, NOT ON PERSONAL ISSUES.
4. PRESSURE POINTS - GENERALLY US TO COUNTER A
PAYMENT PROPOSAL OR COUNTER PAYMENT PROPOSAL.
5. REFER TO THE BOSS/COMMITTEE - ALWAYS REFER TO A
“HIGHER AUTHORITY”
6. AVOID/PREVENT ADVERBIAL COLLECTION/NEGOTIATION -
7. DIMINISHING VALUE OF FAVOR/CONCESSION - ALWAYS
ASK FOR RECIPROCAL CONCESSION.
8. AVOID OFFERING TO SHARE THE DIFFERENCE -
ENCOURAGE DEBTOR TO OFFER TO SPLIT THE
DIFFERENCE
9. DONT MAKE DEBTOR’S PROBLEM YOURS - YOU MAY GET
SUCK INTO DEBTOR’S PROBLEMS.
10. LEVERAGE -
11. CONCLUDING THE COLLECTION
NEGOTIATION GAMBITS -
• The good/bad guy gambit
• Penny sharing/shaving

12.WITHDRAWING FROM COLLECTION NEGOTIATION -

IF THE DEBTORS NEGOTIATES IN GOOD FAITH,
CONTINUE WITH THE NEGOTIATION.
13. PREPARING THE DEBTOR TO ACCEPT -
14. REDUCE THE TERMS AND CONDITIONS OF THE
COLLECTION NEGOTIATION INTO AN AGREEMENT -
DURING THE NEGOTIATION TAKE DOWN NOTE.
 HANDLING ANGRY DEBTORS
➤ Allow time for debtor to vent his anger, frustration, or
violence.
➤ Be sure that there is a place with less people.
➤ Don’t disturb or interrupt angry debtor.

Stage 1. Establish the point of controversy

Stage 2. Exchange Information.
Stage 3. Reach for a give and take position
OLLECTION ATTRIBUTES TO DEVELOP A
➤ What’s in a name, (SINO KA BA?)
➤ Favor (LAGAY) power - Power to provide leeway.
➤ Coercive power - Can you make a debtor perceive to be
inflicted with some embarrassment.
➤ Ability power - Set of values, patterns, ethical standards..
➤ Lovability power/ charismatic ability -
➤ Expertise ability - The perception of you as a collector.
➤ Position power -
➤ Encyclopedic ability - Ability to share some information.
STANDING DEBTORS’/CREDITORS’ PERSO
➤ ASSERTIVE
➤ UNASSERTIVE
➤ EMOTIONAL LEVEL OF THE DEBTOR/COLLECTOR

A COMBINATION OF THE ASSERTIVENESS AND EMOTIONAL

DIMENSION WILL RESULT TO THE FF. KINDS OF
COLLECTOR/DEBTORE PERSONALITY.
➤ ASSERTIVE - UNEMOTIONAL INDIVIDUAL - PRACTICAL
➤ ASSERTIVE - EMOTIONAL INDIVIDUAL - FRIENDLY
➤ UNASSERTIVE - EMOTIONAL INDIVIDUAL - PEACEMAKER
➤ UNASSERTIVE - UNEMOTIONAL INDIVIDUAL - CHAIRMAN