Collection Skills “The Good, The Bad & The Ugly” Cary Geil- Director of Collections John Rhine-VP Client Relations National Credit Management

Active Listening Skills Most Important Skill for Collections Helps to Identify Reason for delinquency Ability to determine borrowers motivations Shows the borrower respect and dignity Do not interrupt or try to talk over the borrower 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 2

Identify Borrower Type By identifying the borrower you will be able handle the call more consistently Type 1- Pays Account Type 2- Refuses Payment Type 3- Requests Monthly Payments Type 4- Disputes the Debt Do Not Assume all debtors are the same before listening to them 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 3

Tone of Voice Your tone of voice is just as important as what you are saying to the borrower. You must sound: Confident, Friendly, Helpful, Professional and Positive Do not develop a negative attitude with borrowers 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 4

Control of Conversation Follow a consistent progression of conversation Allow borrower to participate, but keep call moving forward in a productive manner Do Not try to talk over or dominate the conversation Avoid going on the defensive, learn to pivot and redirect conversation 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 5

Overcome Objections Be creative and positive to find a solution Try to find common ground with the borrower Anticipate common objections and stalling Avoid making the conversation about the person, keep it about the bill 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 6

Effective Rebuttals Be prepared to avoid potential disputes Read notes of Previous calls Be able to explain common questions, such a Title IV funds being returned, additional collection fees, and Perkins Loan specifics Avoid allowing borrower to stall 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 7

Use of Open Ended Questions Use questions the prompt the borrower to respond with detailed explanations Avoid straight Yes/No Questions 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 8

Update Information Always try to update all contact information for the borrower on every contact Email address, Place of employment, Home address, all phone numbers 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 9

Negotiating Don’t just take whatever they offer because “Something is better than Nothing” Don’t tell them “No, That payment is unacceptable!” Instead redirect with more reasonable arrangements 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 10

Sense of Urgency Always try to get a payment while on the phone. Be willing to take less payment in exchange for the immediate payment Avoid “The checks in the mail” type arrangements Avoid “I’ll pay you next month” type long range promises 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 11

Time Management Try to spend as little time as possible on phone calls Avoid long “wrap time” between calls. Try to type and talk as you go as much as possible to get on to the next account Avoid prolonged skip tracing sessions during peak contact hours 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 12

Organization Make sure to always document specific follow-up times Be aware of how many accounts are scheduled for a specific day Always take detailed notes 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 13

Timely Effective Follow Up Set specific call back times with the borrower Have them call you back, hold them accountable with a follow up call if they fail to keep the promise Have the borrower repeat payment instructions back to you, to ensure that they have actually taken down the information 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 14

Communication With 3rd Parties Always try to maximize opportunity to get information from 3rd parties Try to leave messages with 3rd parties Avoid disclosing information that violates FDCPA or FERPA 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 15

Be Analytical Pay attention to details, be aware of previous discussions, payment history, credit attributes, delinquency date and other contributing factors Be creative to find solutions that motivate the borrower and address their concerns Avoid trying to follow a 1 size fits all script 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 16

Bridging With The Borrower Be Prepared to recognize borrowers past payments. Make positive statements encouraging them to resume Avoid negative comments that will put a wall between you and the borrower Try to find common ground, let the borrower know that you understand and can relate to their situation 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 17

Use Judgment Pay attention to the balance of the account when allocating time and resources Be aware of the age of the debt, know when to write off your losses Be aware of any special circumstances and be flexible with your policies Always try to avoid complaints 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 18

Questions?? Cary Geil cgeil@ncmstl.com (314) 809-1599 John Rhine jrhine@ncmstl.com (314) 954-1599 8/27/2018 MASFAP Conference I Celebrating our past, inspiring our future. 19