Vanguard’s Approach to Debt Collection
Unlike many agencies, Vanguard prioritizes the human aspect of debt collection, focusing on negotiation and understanding the debtor’s situation, while balancing firmness and fairness, and ensuring that each interaction is handled with a level of respect and empathy that distinguishes their approach from more traditional, aggressive tactics. This approach not only aids in resolving debts amicably but also helps in maintaining a positive relationship with the debtor, which can be crucial for future interactions.
How does Vanguard's approach to debt collection differ from that of other agencies?
We approach each debtor giving them the benefit of the doubt. We pride ourselves on our ability to negotiate and mediate, understanding the debtor’s financial situation and reviewing any disputes and working with them amicably to resolve their debt situation. That said, we have a process of escalation if the debtor does not work with us or is non-responsive. This could include registering with the credit bureaus and possible legal action if the amount of the debt warrants it. We have to let the debtor know the consequences of ignoring the debt.
In a field that is often criticized for aggressive tactics, how does Vanguard ensure ethical practices?
Vanguard follows all legislative rules dictated in the Collection Practices Act. Interestingly, the act was originally written, in part, by my father Raymond Bridgewater many years back. Those principles originally founded back then are the basis for the act as it stands to this day. Additions to the base act were also negotiated through meetings with provincial counterparts for which my father and myself were instrumental in finalizing.
How has the way you communicate with debtors evolved over the years?
There have been no changes in how we approach debtors for payment, however as economic times change, we may adjust how we negotiate payment. Since Covid, many individuals struggled to pay their bills and some businesses shut down temporarily or altogether, therefore we found ourselves extending payment timeframes or simply settling for a lesser, but mutually acceptable amount.
What are some of the biggest challenges currently facing the debt collection industry?
What are some of the biggest challenges currently facing the debt collection industry?
Perception. Agencies have always received a bad rap, partly due to media (Repo Man as an example) and unscrupulous agencies. Most of which is a result of the ‘wild west’ that is the U.S. collection industry.
Multiple agencies get shut down every year in the U.S. due to threats, lies and misrepresentation. If you are a debtor and you get a call from a collector, all of a sudden the agency is the bad guy. On the other hand, if you are owed money, we are your best friend. I relate this to dentists. Everyone hates dentists, but who’s the first person you run to for that excruciating toothache?
How do you train your staff to handle the emotional complexities that come with debt collection?
The biggest challenge for a debt collector is the balance between getting your point across and the ability to keep the ‘personal’ out of it. Debtors can get pretty irate, however that anger can be projected onto the collector, when clearly the collector is not at fault for any issues relating to their debt issue. Collectors have to keep emotions in check and have an understanding of the debtors issues.
Our ability to handle these situations is why Vanguard has a very low complaint history and important to some, an A+ BBB rating. There are very few accredited collection agencies.
