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Unformatted text preview: eller’s attorney may be used. Personal visits This technique is much more common at the consumer credit level,
but it may also be effectively employed by industrial suppliers. Sending a local salesperson or a collection person to confront the customer can be very effective. Payment may be made on the spot. Collection agencies A firm can turn uncollectible accounts over to a collection agency or
an attorney for collection. The fees for this service are typically quite
high; the firm may receive less than 50 cents on the dollar from
accounts collected in this way. Legal action Legal action is the most stringent step, an alternative to the use of a
collection agency. Not only is direct legal action expensive, but it
may force the debtor into bankruptcy without guaranteeing the ultimate receipt of the overdue amount. aThe techniques are listed in the order in which they are typically followed in the collection process. Review Questions
14–11 What is the role of the five C’s of credit in the credit selection activity?
14–12 Explain why...
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