Collection agencies work hard to spare their clients from losses arising from customers who decide that paying a bill is an option and not an obligation.
Without professional collection agencies, businesses would suffer even more losses. In fact, one could justly argue that collecting a debt renders a service to the economy as a whole.
Collectors often face challenging situations, and some — no doubt — have entertaining and maybe even scary stories to tell of the myriad means used by those seeking to hide from collectors. But what happens when the debtor is a politician or even a celebrity?
Paul Winfield was a rising star in Mississippi politics — until he was arrested on federal bribery charges. It turns out there was a warning sign about his personal character, as he’d had his wages garnished for a past-due bill.
Pamela Anderson, known for her starring role in the television show “Baywatch,” landed on California’s 500 biggest income-tax delinquents in April 2012. She was joined by Nick Cassavetes and famed boxer James Toney, who each owed more than a quarter-million in back taxes.
As it turns out, the list of those who neglect to pay income taxes include more than a few celebrities and politicians. Nicholas Cage, Wesley Snipes, and Burt Reynolds also cheated Uncle Sam.
When we live in a culture where reneging on a bill is considered a clever way to manage money, a serious approach to collections management is essential. It’s not just a matter of business success, but sometimes — when bad debts are out of control — it’s a matter of survival for a business.
Professional collectors aren’t the bad guys. It’s those who don’t pay their bills, particularly when they have an obvious ability to pay. Without the men and women who work hard to hold people to their commitments, our national gross domestic product would be even lower, as losses eat deeper into profits.
Remember all this the next time you complain about a legitimate bill. Don’t shoot the messenger. Look at yourself and your own ability to manage money. That’s the place to start making changes in the way you manage your financial obligations.