by Travis Ross - Posted 3 months ago
At ACS, we understand that life doesn’t always go according to plan. Unexpected expenses, job loss, or other financial challenges can make it difficult for customers to keep up with their payment obligations. In the buy-here, pay-here (BHPH) industry, where customers often face more significant financial difficulties, handling collections in a way that reflects empathy and respect is essential. That’s why our approach to BHPH collections is grounded in advocacy rather than adversity. We aim to ensure that both dealerships and their customers can navigate tough financial times together collaboratively and problem-solve.
Collections often have a negative connotation in the business world, conjuring up images of aggressive tactics, mounting pressure, and strained relationships. However, at ACS, we take a different approach. We believe that every customer deserves to be treated with fairness, understanding, and respect. Rather than seeing collections as a means of punishment for missed payments, we see it as an opportunity to advocate for customers, helping them through financial hardships while securing the dealership’s bottom line.
Being an Advocate, Not an Adversary
Our philosophy centers around advocating for both the customer and the dealership. When a customer falls behind on payments, it’s often due to circumstances beyond their control. Instead of treating these situations as purely transactional or adversarial, our first step is to listen and understand their unique challenges. This is the foundation of our approach: listening with empathy, not judgment, and understanding that each customer's situation is unique.
By putting ourselves in the customer's shoes, we recognize that they are likely facing stress and uncertainty, which can exacerbate the financial situation. Therefore, we focus on clear communication and solutions, not penalties. Collections, in our view, should not add to the pressure customers already face; instead, we aim to provide relief by working collaboratively to find ways to bring the account current that works for both parties. This approach is designed to reassure customers that we are here to help, not to add to their stress.
One of the core tenets of ACS’s collections strategy is collaboration. We work hand-in-hand with the dealership and the customer to explore solutions to help bring accounts back into good standing. This collaborative approach not only helps the customer navigate their financial challenges but also ensures the dealership's financial stability. By focusing on what can be done to resolve the issue and move forward, we create a win-win situation for both parties.
Creating Tailored Payment Plans
Every customer’s financial situation is different. That’s why we take a personalized approach to collections, working with customers to create realistic and manageable payment plans. Our goal is not to impose one-size-fits-all solutions but to craft payment arrangements that align with the customer’s current financial capabilities while ensuring the dealership recoups its money. Whether it’s restructuring the payment schedule, temporarily reducing payments, or allowing flexibility in due dates, we strive to find a solution that alleviates financial strain.
By being adaptable and understanding, we empower customers to take control of their financial situation. This approach also minimizes the likelihood of repossessions, which can be costly and time-consuming for dealerships and damaging to customers. By giving customers the tools and support they need, we ensure they feel in control of their financial situation, leading to stronger customer relationships and more consistent payments for the dealership.
Offering Financial Resources and Guidance
We know that many BHPH customers may have limited financial literacy and resources. Often, missed payments are not just the result of an immediate economic emergency but part of a larger cycle of financial instability. That’s why ACS goes beyond collections and offers resources to help customers improve their financial standing in the long term. We provide information on budgeting, managing debt, and even resources like job placement or local financial assistance programs when applicable.
By offering educational resources, we help customers break the cycle of financial distress, making them better equipped to meet their payment obligations in the future. This creates a win-win scenario: customers gain the tools they need to avoid future financial trouble, and dealerships enjoy more consistent, reliable payments.
Unfortunately, the BHPH industry has garnered a reputation for sometimes employing high-pressure, aggressive tactics in the collection process. We often hear stories from customers mistreated, threatened, or cornered into unsustainable payment plans. At ACS, we firmly reject this approach. We believe that respect is the foundation of any successful customer relationship and, therefore, treat every interaction as an opportunity to demonstrate our commitment to treating people with dignity.
Building Trust and Long-Term Relationships
In the BHPH industry, trust is critical to long-term success. Customers who feel disrespected or bullied by their dealership or collections team are far less likely to maintain a positive relationship with the business. Worse, they may avoid making payments or refuse to discuss their financial challenges. This only worsens the situation for both parties.
At ACS, we strive to create an environment where customers feel safe reaching out for help. Being approachable, respectful, and transparent in our communications ensures that customers know we are on their side. This approach fosters trust and leads to more open discussions about their financial situations, making finding mutually beneficial solutions easier. Ultimately, this helps customers stay on track with their payments while allowing dealerships to retain their customer base and avoid costly repossessions.
Changing the Narrative in BHPH Collections
We aim to shift the narrative around BHPH collections from one of conflict to one of partnership. While collections are a necessary part of doing business, they don’t have to be an unpleasant experience for anyone involved. By advocating for customers and maintaining a respectful tone throughout the process, we demonstrate that collections can be a positive interaction where both sides work together to achieve the desired outcome.
This shift will benefit the customer and dealership in the short term and help improve the reputation of the BHPH industry. Customers who feel respected and supported are more likely to return to the dealership for future vehicle purchases and refer others to the business. This cycle of positive experiences strengthens the dealership’s reputation and ensures long-term success. By highlighting these long-term benefits, we aim to instill a sense of optimism in our audience about the potential of our customer-centered approach.
At ACS, we recognize that collections are just one part of your dealership's larger financial ecosystem. In addition to advocating for customers and providing personalized payment plans, we offer comprehensive solutions that support every aspect of your collections process.
Technology-Driven Collections Management
Our collections process is enhanced by the latest technology, ensuring that every account runs smoothly. From automated payment reminders to real-time updates on account statuses, we leverage technology to make collections efficient and transparent. Our systems track customer communications, payment histories, and current balances, allowing us to provide accurate information and tailored payment options quickly.
Technology also helps us streamline communication between customers and the dealership. Whether through email, SMS, or phone calls, we ensure that customers receive timely reminders and updates, making it easier to stay on top of their payment schedules. These tools also allow customers to quickly reach out for assistance when needed, reinforcing that we are there to help, not just collect.
Legal Compliance and Regulatory Expertise
The collections process is governed by strict regulations, including the Fair Debt Collection Practices Act (FDCPA) and other federal, state, and local laws. Ensuring that your collections efforts remain compliant is critical not only for avoiding legal consequences but also for protecting your dealership’s reputation. ACS is well-versed in the legal requirements of collections, and we prioritize compliance in every interaction.
Our collections team is trained to follow all legal guidelines, ensuring no unlawful or unethical tactics are used. This protects your dealership from liability and reinforces the respectful, customer-centered approach that is the cornerstone of our collections philosophy.
Portfolio Reviews and Account Audits
ACS offers in-depth portfolio reviews and account audits for dealerships looking to improve their overall collections strategy. Our experts analyze delinquent accounts, identify patterns or trends, and provide actionable insights to enhance your collections process. Whether you’re dealing with a high volume of late payments or want to improve the efficiency of your collections team, our reviews provide valuable data that can inform your next steps.
Our portfolio reviews also include recommendations on reducing delinquencies, improving customer communication, and implementing proactive measures that prevent accounts from falling behind. By comprehensively viewing your collections process, we help you optimize your operations and improve cash flow.
At ACS, our mission is simple: to help dealerships and customers succeed. We believe that collections don’t have to be a source of stress or conflict but rather an opportunity to work together to find solutions. By advocating for customers, providing respectful and empathetic service, and offering comprehensive collections support, we ensure everyone involved in the process benefits.
When customers succeed, dealerships succeed. That’s why we’re committed to fostering long-term relationships, reducing financial stress, and helping customers stay on track with their payments. Our collaborative, customer-focused approach to collections ensures your dealership remains profitable while maintaining a positive, supportive relationship with your customers.
If you’re looking for a collections partner who prioritizes advocacy, respect, and results, ACS is here to help. Let us handle the heavy lifting so you can focus on what matters most—growing your dealership and serving your customers.
