How Active Listening Can Turn Difficult Debt Collection Calls Into Collaborative Solutions

Active listening is something our professional debt collectors practice and implement daily here. In fact, we would go as far as to say that it is one of the foundations of how we operate.

In all aspects of life and business, listening is one of the most critical skills we can master. And as a collection agency working with small businesses and large organizations, it is a must for us to carry out our mission.

What is active listening?

Active listening is concentrating on, seeking to understand, and responding to an individual thoughtfully. And it goes beyond just hearing somebody speaking and includes emotions, engagement and trying to understand the context of a discussion. This is why it is so mission critical when communicating with consumers about past due bills and financial obligations. It provides whoever is communicating with the consumer, context about their individual situation and why they have not paid.

It’s also a critical skill to master at any other stage of a business relationship because it helps the business understand the customer much more deeply.

How do we practice active listening when trying to get consumers to pay?

When calling a consumer about a past due bill, regardless if it’s the business or a debt collection professional, we must give that consumer our full attention. Avoiding distractions and anything else other than the task at hand and focusing entirely on the consumer is our first step in listening. Reflecting and paraphrasing back to the consumer also indicates that we hear what the consumer said, and we understand what they have articulated to us.

Asking clarifying questions also helps provide more detail and helps us gain a deeper understanding of the challenges and the individual situation.

Demonstrating empathy also shows that we understand that person’s individual challenges without judgment. And from there, we can provide the necessary guidance to help that consumer and navigate that financial difficulty.

How does active listening help in debt collections?

We cannot help a consumer without proper listening. And it’s vital in debt collections. If you’re a business trying to collect on a debt or a debt collection professional, you cannot resolve any debt without listening properly.

The first thing active listening does is it helps build trust and rapport with consumers. In our many years of professional debt collections, we know that when consumers feel heard and understood, they are far more likely to trust the professional on the other side of the phone. They will engage in an honest and productive conversation about why they have not been able to pay the bill.

Active listening can also uncover the root cause of why the bill has not been paid. If we listen we can understand if there has been a change in employment, medical emergency within the household, other bills that have taken a priority or if there is a dispute.

When we listen, we also reduce any defensive actions. When a consumer feels stressed or ashamed about a debt, that can put them on the defense. A consumer is much more able to work with a friendly voice that understands their situation.

Active listening also encourages problem-solving. When a consumer and a debt collection professional can have a respectful conversation and that consumer feels heard, there was a much greater chance of creating a resolution to the unpaid bill.

How does active listening help the consumer with financial difficulties?

When we engage in active listening with consumers in debt, it can help create those financial solutions. If we can lower their stress about financial difficulty, they are far better equipped to articulate their challenges and needs, which will help them ultimately navigate financial difficulties.

Active listening also gives the consumer an environment to take ownership of their situation. When they feel they can legitimately discuss their challenges with someone who is listening, they may take a more active role and come up with solutions.

As you can see, active listening fosters a collaborative relationship that can benefit both the business and the consumer and enables more productive conversations that should lead to better financial outcomes for everyone.