REVIEW OF AGENTS
COMMISSION RECLAIM PROCEDURE
Background
An agreement between the Company and their Agents allowed for
commission on sales to be paid in advance. The problem experienced
was of Agents failing to honour the prompt return of the amount
outstanding where the sale was not fully completed. The situation
was exacerbated by a significant number of Agent business failures
and the limited success of the Company to realise the full amount
outstanding.
The sums involved cannot be revealed, but were significant both
in amount and in staff resource required to collect.
The Review
- A review of the prevailing situation revealed.
- Poor staff training in dealing with debtors.
- No action until debt had aged considerably.
- Time between first and subsequent collection letters too long.
- Wording of correspondence was vague with no urgency or collection
plan.
- The telephone was not used to follow up the debt.
- Personal Computers were not set up to effectively monitor
debt status or produce correspondence efficiently.
- There were no clear procedures.
- Debt collection Agencies were expensive and limited in success.
The Outcome
- Outstanding monthly debt was halved through a combination
of measures including :
- The introduction of pro-active collection procedures.
- A timetable for action, ensuring the debt stayed collectable.
- Enhanced telephone skills acquired by staff, enabling early
and often successful contact with the Agent
- Improved intelligence by access to an on-line system on Agent
status, giving advance warning of potential collection problems.
- Correspondence rewording without ambiguity.
- Improved systems for debt monitoring and correspondence creation.
- Staff awareness of the collection procedures.
- Debt collection Agency use reduced.
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Malcolm J Wren Limited 
