It is critical to have a policy in place for implementing the management of credit accounts. A credit policy that provides consistency in decision making and implementation will be helpful if it is necessary to deal with a delinquent account. Topics covered in this learning module include Implementation of Policy, Examples of Collection Strategies and Steps, When to Use an Outside Source and Who to Use for an Outside Source. After successful completion of this learning module the student should understand the cost of credit (the Payment Gap, the Red Zone, the cost of delinquency over time), how payment terms or contractual terms relate to delinquency and collections, the importance of having a collections procedure with increasing pressure at appropriate intervals, when to use outside sources for collections, who to use as an outside source of collections and the role of lawyers in collections.
Robert S. Bernstein is managing partner of Bernstein Law Firm, P.C. He serves as counsel to commercial landlords, equipment lessors, bankruptcy trustees, creditors' committees, creditors, and reorganizing businesses in proceedings throughout Pennsylvania and the Middle Atlantic States, concentrating in the many facets of bankruptcy and commercial law. Mr. Bernstein writes and lectures for local and national groups on matters of collection, bankruptcy, business law, and professional ethics and, for more than ten years, has been certified as both a creditors' rights and business bankruptcy specialist by the American Board of Certification. Mr. Bernstein earned a BA from the University of Pittsburgh in 1976 and a J.D. from Duquesne University in1981.