This document discusses an effective collections technique called "What Happened?". It advises collectors to ask debtors what happened to cause them to miss a payment in a genuine way to understand their situation better. This shifts the conversation from an adversarial "us vs. them" dynamic to a collaborative "we" approach. When debtors explain what happened, they are more open to resolving the debt. The document provides examples of how to ask follow up questions, address common excuses, and ultimately find a mutually agreeable solution to collect payment. It encourages collectors to try this technique to improve collections and make their job less stressful.

1. THE ONE QUESTION
COLLECTORS WON’T ASK AND
WHY IT WORKS
Steve Hodgdon
Modern Asset
Management
Steve@ModernAssetManagement.c
om
415-596-2415

2. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Why Listen to This Webinar
Become happier and more effective in your
dealings with customers and in every day life.
2. Learn tools for successful collections and
keep customers happy at the same time
1.
3. Take some stress out of your job
4. Collect more $$

3. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Why Listen at all?
• To learn
• To connect and relate to another
• Because we have 2 ears and only 1 mouth
• To get what we want
• Because reading a joke is never as funny as
hearing one

4. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Let’s make some MONEY!

5. WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
3/8/2014
What kind of Collector are
You?
Old School
New School

6. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Attributes of a Great Collector
• Brave, unafraid of
• Good attention to
conflict
• Wants to WIN
• Great
communicator
• Hard working
• Strong sense of
right and wrong
• Great detective
detail
• Genuinely likes
people
• Knows a lie when
she hears it
• No nonsense
• Takes themselves
seriously

7. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Now The Secret
Sauce!
• Changes the game.
• Changes your POV
• Takes the customer off
defense
• Opens the door to
solutions
• Makes your job easier
• 80% effective

8. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
WHAT HAPPENED?
• WHAT HAPPENED? ASK THIS LIKE YOU MEAN IT.
• ALLOW THE CUSTOMER TO TELL YOU WHAT UNFORESEEN PROBLEM,
WHATEVER REASON THEY HAD TO NOT PAY. TRULY HEAR THEM,
WHETHER YOU BELIEVE THE EXCUSE OR NOT, WHETHER IT’S VALID TO
YOU OR JUST A STALL.
• “OH, SO YOU DIDN’T PAY BECAUSE THE CAR BROKE DOWN AND YOU
COULDN’T GET TO WORK. IS THE CAR FIXED?
REASON FOR NOT PAYING WAS)”.
(OR
WHATEVER THE
• IF THEY TELL YOU WHAT HAPPENED, THEN THEY’RE HALF WAY TO
PAYING.

9. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Ask Again – What Happened?
• Take a moment to let the customer know you
actually heard them.
“Oh, that must be difficult”
“That’s a lot to shoulder all at once”
“It sounds like it was temporary, that’s
good”
• This ONE action separates you from all the other
collectors landlords and utilities that they
owe money. This isn’t their only bill.
• We ALL owe somebody something. Don’t judge.
Engage!

10. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Going from Us vs. Them to WE
• Did we help you by lending you this money? What
did you use it for? (overcomes the objection
that the loan wasn’t of value to them)
• Would you have paid this back on time if you
could have? (who would say no?)
• Do you think of yourself as an honest person? (A
challenge for them to state their values)

11. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Going for the Close -
Problem solve and Find a WIN/WIN
solution
• You promised to pay this when you
borrowed the money. Do you remember
that?
• Do you have a solution?
• How do you want to make this right?
• Can we deposit your payment today? No?
When will your check clear?
• Why isn’t this important to you?

12. 3/8/2014
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
Suggested Responses
• The cat, dog, uncle died.
• Oh, that must have been hard. But I don’t understand how
that connects to your agreement to pay this back?
• Straight Refusal
• No? You won’t pay? Now hang on a minute! Didn’t you
say…” (repeat back when they accepted responsibility)
• No Money
• That must be tough. You understood the terms when you
borrowed the money, right? I want to help you avoid
more interest. What CAN you do?
• Next payday
• What happened to this paycheck? Why will it be
different in 2 weeks? How about an ACH for $xx.xx today
and we will (offer incentive).

13. WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
3/8/2014
What works for you?
• You are a professional bill collector.
• You know what life issues your customers have.
• What works? Share with your coworkers.
• How quickly do you know there’s no hope? Move
on to the next account. Take the next steps.
• How do you keep good will and still generate
revenue?
• Oh, how to tell if you might be breaking a law?
• The Giggle Test…
• If you tell your buddy about your talk off and
they giggle then maybe you went too far.

14. 3/8/2014
Give What
Happened
a Try!
WHAT HAPPENED 2014 - All Rights Reserved steve@modernassetmanagement.com
• Try it! You might like it!
• Engage. Listen. Relate. Be human.
• Be a problem solver.
• Enjoy your work. You’re stuck here for 8 hours.
Have some fun! Set some personal goals.
• Contact Steve@ModernAssetManagement.com or
visit www.modernassetmanagement.com for
more collection views and solutions for A/R
improvement.