Overdue Equipment¶
Daily Tasks¶
Day 1¶
The overdue equipment report needs to be evaluated every day. The key strokes for this report are: R-5-B
For overdue items:
You (or designee) needs to call the customer, leave a polite message that the unit he has is overdue, and ask him to call you back right away.
Text the customer a polite text a polite message stating the same information.
Look for more than one phone number on the contract and leave messages on all numbers possible. (This is why we need to get all multiple numbers if possible at the time of the rental. Extra numbers could include employees, drivers, contacts at job sites, etc. You can also check the internet looking for the company website and additional numbers.)
Enter a note in the contract with the F8 function. Spell out the steps you have taken.
If the customer doesn’t call back within the next hour, run an additional deposit using the credit card you have on hand. If you can get more deposit, add that additional deposit to the contract.
Check the GPS device (if available) to see where the unit is currently located.
DO NOT extend the due date until you talk to the customer and secured an adequate deposit.
Day 2¶
You (or designee) need to run overdue report and evaluate it. If an item is overdue for 2 days: Repeat steps 2, 3 and 4 above. If no additional deposit was collected the day before try the credit card again.
IF YOU CAN’T REACH THE CUSTOMER and if his credit card is DECLINED, send A/R and the VPO emails detailing the situation. Ask A/R to flag/block the customer’s account and add F8 notes to it so he can’t pick up additional items at another location.
Check the gps device (if available) to see where the unit is currently located.
Day 3¶
You (or designee) need to run overdue report and evaluate it. If an item is overdue for 3 days, repeat steps 2 and 3 and if no additional deposit has been collected and the customer has not called back, with your messages (verbal and text) on this 3rd overdue day, inform the customer that if he doesn’t call today and pay an appropriate, additional deposit to extend the contract, we will be forced to take legal action regarding this matter.
If it is a cash customer transfer all the F8 notes to the customer’s phone log on the customer screen. To access this log: B-1-1-1-4, enter the customer number, click on the tab “Phone Log”, hit “add”, enter the information from the F8 screen and save each entry – Use this Phone Log for all future steps taken. This will give us more detail to work with. If it is a charge customer continue using the contract F8 notes.
Check the Solar Trak Device to see where the unit is currently located.
If we know where the unit is, notify Upper Management of the situation and consider repossessing the machine.
If we don’t know where the unit is (no tracking device on it) and we haven’t resolved the situation by the end of Day 3, begin to follow the Failure To Return procedures listed later in this document. (See Failure To Return).
(One letter will be mailed through standard mail and one will be sent via CERTIFIED mail). This certified letter will be our Formal Demand for the customer to return the equipment. On the outside of the envelope, make sure to write a clear note instructing the Post Office to return the letter to us if the customer does not accept and sign for it within 5 days. This is a legal requirement. If the customer receives either the letter mailed through the standard mail or the certified letter and calls you, all you have to do is explain that he had not called back or given us the needed additional deposit. The letters are merely a formality and if he gets caught up and communicates with us properly then he can ignore the letters. This is spelled out more clearly in the following sections.
Day 4¶
While waiting for the return letter or signed slip; Repeat steps 2,3 and 4.
Day 5¶
Repeat step 16 until either the certified letter or the slip certifying that the customer signed for the certified letter is returned to us. Once we have either of these, a Failure to Return (stolen equipment) claim will need to be turned in to the police as described in the Failure To Return process.
Forward all paperwork to VPO for processing
Warning
Once a claim of stolen equipment is turned over to the police department:
DO NOT (you or your staff) accept the equipment back without contacting the police first. The police typically make a few calls to the customer hoping they will return the equipment saving everyone the hassle of moving forward. If you accept the equipment back without their permission, they can feel like a collection agent and may not be so helpful in the future. At that point, it is considered STOLEN EQUIPMENT and the customer is considered a criminal or at least a person to be prosecuted.
This time frame adds up to ample time for the customer to contact us and/or return the equipment before the situation gets turned over to the police. If the customer is this overdue and unwilling to contact us and catch up on needed deposits, after these attempts on our part, we should not feel bad for the guy when he gets arrested. Remember, even if the customer does call us back, he still needs to bring in an appropriate additional deposit BEFORE we will extend his contract. Make sure you and your key staff understand this VERY WELL and keep each other up to date regarding steps already taken and additional steps needing to be taken on a daily basis.
Failure To Return¶
Lock out customers’ file, look for alternate names and numbers for the same customers and cross reference them
Notify upper management of “Failures to Return” rental equipment via email. (See Daily Tasks) On the email, spell out your attempts to contact the customers and attempts made to locate and pick up the equipment.
Set up a “Problem File” at your store and include in it: the original contract, copies of identification, originals of credit card and all related documents.
Add F8 notes to Customer’s file in the computer as things progress and keep copies of all documents the “Problem File” at the store.
Sign a copy of a Demand to Return letter, make a copy of it AND THE ENVELOPE and place them in the problem file. See Demand Letter
Send the original to the customer by regular USPS mail AND sign a second Demand to Return letter, make a copy of it.
Take an envelope and on the outside of the envelope, in large letters write out a note stating: “RETURN IN 5 DAYS”
Make a copy of the face of the envelope – showing the “RETURN IN 5 DAYS” notice on it. Make copies of the all these and place them in the problem file.
Take that Certified letter to the Post Office to mail and get a receipt from the Post Office Send it by Certified Mail “return receipt requested”
When the certified letter “acceptance” card is returned (or the unaccepted envelope) notify upper management that the it has been returned. A decision on whether or not to prosecute will be made by management.
Contact the customer one more time, let him know that the case will be turned over to the police for prosecution the following day.
Consult with Upper Management to see if prosecution is the decided course of action.
Contact the fleet manager & discuss replacing the stolen items. Have replacements ordered if appropriate.
Determine the replacement cost for the stolen equipment and add the item to the contract as a sale with its replacement cost.
Add a rental item called “NOTE” to the contract. Add an F8 message to that “NOTE” stating: “these items were stolen and not returned, the Police department you are turning it over to.
If prosecution is desired, make a package of “copies” of all documents and information in the file for the police.
Take that package to the local police department (or call them to the store) to file a report – submitting it all to the police.
Get the police officer or detective’s name, phone number, report/case number (add report # to contract) and put it in the “Problem File”. Update customer’s F10 A/R Message or have A/R do it.
The police typically call the customer to inform him of the action being taken if the equipment is not returned. IF THE CUSTOMER TRIES TO RETURN THE EQUIPMENT after the case has been submitted – you must get the approval of the police department to receive it back. Otherwise the police may feel that you are using them as a collection agency.… If they say to accept the equipment, then let the customer return it and notify the police. HOWEVER, if they have already gone to the effort of making calls and taken the next steps to initiate prosecution, they may want to proceed with the prosecution since the customer broke the law. Do whatever the police instruct you to do.
Close out the contract for the full rental amount due and indicate that the items were not returned. While doing so, enter the replacement cost of the equipment for each item not returned.
Print a copy of the closed contract showing the TOTAL amount due for file. Update F10 A/R Message & put copy in problem file.
To balance out at the end of the day: Enter a “Credit Memo Adjustment” to reverse out the A/R Balance. If the deposit was converted and included in the total, to make the credit balance, enter the damage credit as the difference/1.06 and notify Upper Management of status. Do a mid-day trail balance to make sure the day is still in balance. Update F10 A/R Message or have A/R do it.
Since the Credit Memo puts the item back into available status, Put it in repair with a message that it was stolen and to be scrapped.
Notify Fleet (using disposition form) that it is currently in “REPAIR” but needs to be scrapped as stolen.
When warrant for arrest is received, place a copy of it in the problem file and Update customer’s F10 A/R Message or have A/R do it.
Make sure the “Problem File” includes copies of all documents, place them in an envelope, and send it all to corporate.
Demand Letter¶
Download the form to fill out Demand Return Letter
Be sure to fill in all required information
Save the file with the following naming convention: DemandLetter_StoreName_CustomerName.pdf
Prepare Two envelopes to mail. One will be a standard mail and one will need to be send certified, return receipt requested.
On the outside of the Certified Mail envelope, write in big bold letters: RETURN IN 5 DAYS
Print and sign two letters (one for each envelope) and scan a copy of the signed letter into your computer.
Print off copies of the rental contract. Place a copy of the rental contract and an original, signed copy of the demand letter in each envelope
Do not include a copy of the formal law. (The attorney says that all we need to do is refer to it. Let the customer investigate the wording and actual law if he chooses to do so. We don’t have to make his job easier. All he needs to do is return the equipment and pay his bill.)
Seal the envelopes and take them to the Post Office
Mail one through the standard USPS mail and send the other envelope (the one with the RETURN IN 5 DAYS notice on the front) by Certified Mail, return Receipt Requested.
Inform your staff that either a signed receipt will be returned or the entire envelope will be returned if it does not get signed for.
Tell your staff that you need to be notified immediately of either occurrence AND if the envelope is returned, it MUST NOT be opened by us or we may have to start all over again.
When the signed receipt or certified envelope is returned to you by the Post Office, notify the Vice President of Operations and a legal course of action will be determined.
Download the form to fill out Demand Return Letter