Watching the events unfold at the Bundy Ranch a few weeks ago got me thinking about how similar those events are to the real life collection situations I see every day.

In case you missed it, Cliven Bundy is a Nevada rancher who has had a long-standing dispute with the US Government over fees for grazing his cattle on land owned by the US Government. Apparently a huge portion of the grazing land in Nevada and elsewhere is owned by the Feds, and ranchers have to pay a fee to use the land. The Feds say Bundy has not paid in years and owes a million dollars. Rancher Bundy says he no longer recognizes the US government and therefore does not owe them a dime. There have been lawsuits and appeals galore, and in the end the Feds prevailed in Court, and came to Bundy’s Nevada Ranch to take his cattle in lieu of payment. The Feds came with firepower, and Bundy summoned a small army of his own to meet them. Cattle were taken, guns were pointed from both sides, it became a very scary standoff, and in the end, the Feds blinked first. They returned the cattle, and left the ranch, if only to avoid what looked like certain bloodshed. Bundy and the militia men are claiming victory over an oppressive government. The Feds have vowed to recover the money due them eventually, but will seek less agressive ways to get paid.

Before I go any further, I would like to state that this is NOT a political post. I am making no statements on my feelings for either side. This is a post about debt collection, because at the core, the Bundy Ranch incident was about the collection of a debt that went terribly, terribly wrong.

So here is what we can learn about debt collection from the Bundy Ranch:

• Don’t make it personal.   Emotion took over. The Feds showed up with guns, and were met with guns. It is very easy when someone owes you money for a service you provided to get angry and want to get even. While it is OK to be angry, it is how you channel that anger into a constructive debt collection that makes all the difference. NEVER threaten. If you are going to take an acton, do it thoughtfully and professionally. 
• Make sure there are assets – The Feds wanted Cliven Bundy because he had assets – his cattle. If you are going to take legal action against someone, make sure there is an asset to attach. If not, your judgment is worthless. Work on obtaining judgments you can collect!
• Communication is key – Was there some documentation that could have been done years ago that would have clarified who owned the land and what the fees were? Make sure you communicate your services and fees carefully, and document your expectations for payment. Have a system in place to follow up on receivables at 30, 60, 90 days – accounts receivables best practices can prevent problems down the road. 

Will the Feds get paid at some point or will Cliven Bundy prevail? I do not know. Should you diligently pursue those who owe you money? Yes! Should you be tough? Absolutely! The magic is to be tough in a way that is clear, consistent and professional, a winning strategy every time.