Calling in the debts

By ALICE SHOPLAND

Technology has changed the debt collecting business - so radically that most of us probably need to adjust our mental image of it.

Sure, some of the telephone collectors working in Baycorp Advantage's bustling Auckland call centre look big and burly. Sure, they could probably break down a debtor's door.

But all of their work is done by phone, the key a good telephone manner.

As Grant Reynolds, manager of the Debt Recovery Company says, "Door knocking is archaic and it doesn't work - if you turn up and ask for several hundred dollars, they don't have it on hand to pay."

Andrea Allan has worked for Baycorp for eight years. She started as a telephone collector and has worked her way up to lead a team of 10.

She's friendly and pleasant in person, and it's easy to imagine she has the same manner on the phone.

Like many of her colleagues in the debt collecting business, Allan's background is in general office administration, which included dealing with debtors.

"I worked for a courier company," she says, "but they didn't have computers and I knew it was time for me to move on to a company where I could learn computer skills."

She came to the right industry - debt collection is heavy on technology these days.

A telephone collector calling out of Baycorp sits in front of a computer screen. The central computer continually dials the phone numbers which have been diaried for that day.

Successful calls are automatically directed to the operator who's been waiting the longest. The details of the call - who's being called, and why - appear on the operator's screen and he or she has to very quickly read the relevant parts, have the necessary conversation, type some notes about the call into the file, and get ready for the next one.

The collector's task is to find out why the debt is not being paid and what they can do about it.

They explain why it needs to be paid, ask about the debtor's employment status and income, and try to negotiate an acceptable amount for regular payments to clear the debt.

The equivalent of 180 full-time collectors work for Baycorp, fielding tens of thousands of calls each week.

Depending on complexity, each can handle up to 20 calls an hour. Yes, Allan says, it can be pretty bewildering to start with.

Collectors also deal with budget advisers, including those appointed to a debtor by the court. Baycorp's collectors need to be familiar with the Privacy Act.

In-house training covers legal issues, how to talk to debtors in a friendly but efficient way - and how to deal with the occasional surly customer.

"A small proportion of the calls get a bit tense," Allan says, "but you get that in any job."

Grant Reynolds says most debtors know they're in financial strife, so aren't too surprised to get a call. The trick is, Allan says, to show empathy, not sympathy, for the debtor's situation.

Debt Recovery's collectors start on about $30,000, and as their knowledge and skills develop, salaries can increase to about $50,000.

"It's quite exciting," says Reynolds. "One minute I'm dealing with someone on a low income from South Auckland, [but] the next call might be a solicitor for a company that owes my client $250,000.

"We're regularly dealing with the District Court and the High Court, and we also act as mediators, because a lot of debts are in dispute.

"We're dealing with builders and contractors, and corporate clients - you get a good knowledge of all these different industries and you have to be familiar with the specific laws and Acts applying to each industry."

He says most of his staff have previously worked in offices and handled credit control, but "we consider anyone with a good phone manner, because you can teach them the rest".

To succeed in this industry, Allan says, you need to:

* Be street-smart and have good life skills, because you need to deal with a very wide range of people.

* Be good at listening and negotiating.

* Have a positive attitude.

And to work in a large agency like Baycorp, you also need to enjoy being part of a team in a close-knit call centre environment.