Category: Tucker Albin and Associates

Just as personal bank accounts have taken a hit over the past few months, businesses have hardly been spared the pain. The ongoing health crisis that has gripped the globe has brought on never-before-seen economic hardships. Minnesota’s Mall of America, the landmark shopping mecca, serves as a prime example of what businesses are up against. Tucker Albin & Associates, a commercial debt collection agency, wants readers to understand both sides of the coin. Bills eventually come due and contracts mandate that they must be paid. In the event they are not paid and “good faith” efforts to make good on debts are not conducted, it’s time to call in the experts at Tucker Albin.

According to an August 2020 article from PYMNTS.com, the Mall of America (MOA) “has reportedly missed its last three mortgage payments as it deals with pandemic-driven shutdowns.” Driving the economic issues at MOA is the fact that they simply can’t operate at full capacity. The report notes that some 150 of the mall’s 500 stores initially re-opened, but that total has now climbed to about 85 percent. The local Star-Tribune newspaper notes “the number of visitors has continued to grow while the complex complies with guidelines on capacity, with less than 50 percent of its daily average of more than 100,000 guests.”

As it pertains to Tucker Albin and Associates, MOA is a prime example of commercial debt issues. The mall’s owner has entered into a debt restructuring plan that will wipe millions off the books. This deal came about through negotiation; firms who hire Tucker Albin have often tried to extend the olive branch and had it brushed aside. We know the signs of avoidance by firms that have past-due bills. They’ll dodge phone calls, dispute invoices, claim they’ll be filing for bankruptcy, say they will be receiving a loan soon or generally avoid the issue at hand: repayment. Tucker Albin & Associates initiates commercial debt collection efforts with an initial demand letter that notes it is time for “voluntary payment.” If this does not spur the debtor to action, skip tracing and legal options are now on the table. The hidden assets, which could be used to pay off debts, will be uncovered. A threat of court proceedings is often the final step that convinces a commercial debtor to pay up.

There isn’t always the need for combative communications between your company and the client that owes you money. However, Tucker Albin takes a firm stance and it helps those who need to get re-paid.

The health crisis has highlighted the need for industries to make changes that take the realities of the present into account. Tucker Albin & Associates note that the commercial debt recovery space is no different, as agencies have had to make adaptions where necessary to increase the likelihood of a successful recovery. To provide a more wholistic view of ways that some collectors are implementing practices, Tucker Albin & Associates include a short list of these changes and how they impact debtors.

Tucker Albin notes that the pandemic has highlighted the need for both commercial recovery agencies to utilize context aware messaging when contacting debtors. The reasoning for this is clear, as the COVID-19 crisis has been a catalyst for financial obstacles for businesses and individuals alike. Tucker Albin realizes that this approach works particularly well for debtors that have preserved a good relationship with the entity seeking payment and are amenable to paying. The approach is very similar to the way that Tucker Albin & Associates offer diplomatic debt mediation when possible. Some businesses have been hit quite hard by the pandemic and restrictions made to limit transmission of the virus, and these companies like to know that their feelings are being considered by agencies seeking their past due balances.

Commercial debt recovery agencies are also recognizing the importance of self-service options. With the increase of individuals that are falling behind on their payments, agencies have done a deep dive into consumer behaviors and how they tend to impact the way in which payment methods should be approached. This has led to the implementation of self-service options, especially for small businesses, to facilitate payments in a manner that is less stressful for both parties.  Online payment portals that allow for self-service options appeal to consumers’ tendency to prefer handling their payments similarly to how they pay other expense. In some instances, a consumer may prefer to begin processes such as seeking deferral and payment plan adjustments with automated self-service tools rather than discuss them with a representative.

In times where financial difficulties are omnipresent, Tucker Albin acknowledges how flexible options for payment can be a great way to recover debt. Consumers, especially given the current climate, are in constant search of flexibility as it allows them to reconcile payments in a manageable way. Tucker Albin and Associates note that this does not mean that agencies need to be soft on debtors in an effort to ethically collect, instead recognizing that the adaption should be utilized to come to a conclusion that benefits both the debtor and creditor. In their examination of debtor behavior, Tucker Albin and Associates realizes that businesses tend to pay debts that appear more manageable faster. To this point, a conversation to discuss the terms of a flexible repayment option may increase the likelihood of successful debt recovery by making your payments one of those key manageable bills.

As was the case prior to the pandemic, the commercial debt recovery space is diverse and contains a plethora of different methods for approaching collection. As such, the listed adaptions are just a few of the notable changes made by some entities at this time. Tucker Albin and Associates consistently speak to how many debts can be recovered amicably, even in times of financial stress. Agencies in both commercial spaces simply need to evaluate how their methods are working and make changes that take the situations debtors are experiencing into account.