The Business of Spanish-Language Collections

  As the Hispanic population grows, card issuers more than ever need to know how to communicate with Spanish-speaking consumers, especially in collections situations.
  It's no secret that some credit card issuers and other lenders recently have increased their budgets and resources to capture more of the lucrative U.S. Hispanic market. Every day we see new offers, Web sites and credit card products customized for Spanish-speaking customers.
  It is well known that Hispanics prefer to be marketed to in their native language. Redwood Shores, Calif.-based Cheskin Research recently conducted a survey of 6,000 Hispanics and found that 76% prefer to be marketed to in Spanish. These customers expect their accounts to be serviced in Spanish, but are surprised and confused to find that many banks and creditors are not offering fully bilingual back-office support, especially in customer service and collections. The inability to service Spanish-speaking customers in collections can negatively impact an issuer's ability to retain customers and bottom-line results.
  U.S. Hispanics come from more than 20 different countries and, depending on their origin, use the Spanish language differently. A challenging issue for a lender servicing Hispanic customers is communicating in neutral "Business Spanish" to all of its customers. Business Spanish is using formal language, appropriate terminology, neutral vocabulary understood by any Spanish speaker and following specific grammar rules in Spanish.
  Depending on the geographical location of the call center, collectors and customers often come from different backgrounds and, therefore, communicate differently both in written and spoken Spanish. Just as in English, effective collectors must be aware of the regional differences in how Spanish is spoken.
  There are three major groups of Spanish speakers in the United States. The majority of those who live in the East are of Puerto Rican or Cuban-American origins. In the West, the heritage of Spanish speakers is mostly Mexican and Central American. Then there are South Americans, who live all over the U.S. and who speak yet a different variation of Spanish.
  Spanish-speaking collectors may be first-, second- or third-generation Americans. Many have been educated in the U.S., in English, learned to speak Spanish at home and are unable to read or write fluently in Spanish. Their understanding of the Spanish language may be limited to their families or communities.
  The challenge this provides in the workplace is that conversations at home are colloquial. Speaking to family and friends about sports, television shows, meals, etc. is very different from conducting a telephone conversation with a customer about credit bureaus, payment plans or legal issues.
  A simple example is that in Spanish there are two distinct ways to say "you:" formal ("Usted") and informal ("t?"). Each usage requires different verb conjugation. Misuse of "t?" and "Usted" and the appropriate accompanying verb is a very common mistake heard in collection conversations.
  Improper verb conjugation may be likened to making a serious grammatical error in English. The closest example in English might be saying, "You needs to pay today," instead of "You need to pay today." Conducting phone conversations in this way can be detrimental to an issuer's business image. Collectors can lose credibility on a telephone call by speaking improper Spanish.
  Taking Steps
  We have seen an increase in creditors that have become active in reinforcing their back-office processes and preparing their staff to service Spanish-speaking customers. The steps they are taking in collections include sending all written communication to customers in Spanish, testing the language proficiency of bilingual job candidates to ensure they are qualified to handle business telephone conversations, providing bilingual training in skills and collections vocabulary, certifying bilingual collectors to justify paying a bilingual premium, and conducting call monitoring in Spanish.
  Below are several of what we consider best practices in the use of Business Spanish for collections.
  * Consistent Communication and Translations: We find that although many collection operations are handling both incoming and outgoing calls in Spanish, many are sending written communication in English only. Large numbers of Hispanics do not read or write in English. Critical information such as warning of a possible write-off, explaining reaffirmation instructions or even demanding a payment will not be understood by a Spanish speaker who does not read in English. Additionally, many customers who receive English-language letters call the issuer and ask the collector to translate the letter to Spanish over the phone.
  Obviously, this is not a productive use of the collector's time and, certainly, extends call duration. It is important to maintain consistency in communication with customers. If marketing and sales are conducted in Spanish, calls are handled in Spanish, then written communication should also be sent in Spanish.
  Issuers who fully service Spanish-speaking customers ensure that all written communication with customers, including monthly credit card statements, letters, forms, legal documents and system-generated letters, is accurately translated to Spanish. Translations must be in appropriate, neutral Business Spanish, formal and grammatically correct, that is clearly understandable by any Spanish speaker. For the highest level of accuracy, use a combination of both Spanish and English native speakers to work on translation projects.
  Additionally, it is important to provide a Spanish-language option for pre-recorded telephone communication including announcements, integrated voice-response scripts and other messaging systems. The Spanish-language option should be offered very early after the call is answered, not, as many systems are programmed to do, offering Spanish at the end of a long English menu. Translations must not only be correct and spoken with a neutral accent, but the language used in the recording must be consistent with each issuer's Web site, credit card application, customer service and other internal company processes.
  Lastly, the same level of care and attention should be given to Spanish-language communication as is given to English communication. It would be unacceptable to have spelling mistakes or grammatical errors in a letter in English, so mandate the same high levels of care and professionalism from your translators in Spanish.
  * Proficiency Testing: How do companies ensure they are actually hiring qualified bilingual candidates? Depending on the location of the collection operation, Spanish-speaking job candidates may be in short supply. Hiring managers at many companies determine the language skills of applicants by using assessments that test verbal communication, reading comprehension and writing skills to evaluate the competency of the Spanish speaker.
  Since many call-center positions require collectors to handle calls in both Spanish and English, assessing the language skills of bilingual job candidates in both languages helps issuers evaluate whether the candidate is truly qualified for a bilingual call-center position. The information from the assessment also provides employers with the information necessary to decide whether or not to pay a premium for bilingual skills.
  Often, we find that recruiters and human-resources staffs are not bilingual and base their hiring decisions on trust that the candidate actually speaks Spanish competently. This can lead to many problems.
  For example, our firm recently assessed the verbal and written skills of a supervisory candidate. The candidate previously worked as a translator for a state government office, therefore, it would seem that his Spanish language skills would be proficient.
  In fact, although the candidate was able to clearly communicate verbally, he failed the written test because he did not use correct grammar or vocabulary to translate a simple paragraph. The English-speaking hiring manager had no idea of this candidate's deficiencies since he did not speak Spanish. Unfortunately, this is not an unusual situation.
  The most efficient language assessments are handled by conducting a 10- to 15-minute telephone conversation with the job candidate at the time of the interview. The candidate is evaluated based on his language and communication skills, use of proper grammar rules, variety of vocabulary, whether or not slang, made-up words or English words are inserted into the Spanish conversation, and other objective criteria. The hiring manager receives an e-mail report, much like a call-monitoring report, evaluating the language skills of the candidate and can use this information to make or decline a job offer.
  * Bilingual Training: Bilingual collectors encounter many different challenges in their work environment. Collectors must use accurate terminology and phrasing to describe processes and to give instructions, such as making a check-by-phone payment, explaining reasons to avoid bankruptcy and describing late and overlimit fees.
  We find that consumer collectors at many organizations in the credit industry train collectors in collection skills, negotiation techniques and specific technical knowledge in English and then tell their Spanish-speaking collectors, "now go say that to customers in Spanish." Without appropriate training in Spanish, collectors who are not familiar with the language's credit and collections vocabulary often make errors and become frustrated in their conversations with customers.
  Some lenders emphasize Spanish-language training in collections that includes specific skills sets, such as open and closed questions, selling the benefits to pay, explaining consequences of non-payment and handling specific collection situations. The most effective training includes specific collections vocabulary, technical jargon and phrases, and teaches collectors how to understand and effectively handle the cultural diversity of Spanish speakers in the U.S.
  The sample on page 20 of commonly used collection words from our glossary illustrates the regional differences and variations of Business Spanish. Bilingual collectors need to know and understand not only the neutral Business Spanish words and phrases, but also other words that customers may use.
  A simple example of potentially confusing word usage in collections is the use of the Spanish word "cancelar." A non-Spanish-speaking person might understand this word to mean, "to cancel." In Mexico, for example, this word does, indeed, mean "to cancel." However in Puerto Rico, Venezuela and other countries, the word "cancelar" primarily means "to pay."
  In fact, there are more than nine different verbs in Spanish that mean "to pay." A misunderstanding of the use of words and terms during a telephone call decreases understanding between the customer and the collector and, therefore, can increase both the call duration and frustration of both parties.
  Business Spanish training, including a glossary of credit and collections terms, has been proven to greatly reduce call duration, reduce the number of hand-offs to supervisors, and most importantly, improve kept-promise rates and dollars collected per hour.
  * Certification of Bilingual Collectors: In addition to training, some creditors are performing certification processes of bilingual employees before those collectors are paid a bilingual premium. The certification process involves a pre-assessment, training in specific collection skills in Spanish, and specific vocabulary and post-training testing. Collectors who successfully complete the program generally are certified for one year and companies allow them to be eligible for bilingual premiums.
  * Call Monitoring in Spanish: One of the challenges often faced by card issuers and other creditors is that many collection supervisors and managers do not speak or understand Spanish and, thus, are unable to monitor collection calls. Therefore compliance and quality are at risk and management does not know how collectors perform on the phone. An independent third party that monitors Spanish-language calls and provides specific feedback to managers is a simple solution to this problem.
  Whether an issuer services its Spanish-speaking customers in-house or uses an outside vendor, best-practice guidelines should be followed in order to provide the best service and meet business goals. Best practices include communicating consistently in written, spoken and pre-recorded messages in Spanish, testing the language proficiency of bilingual job candidates, providing bilingual collections training, certifying bilingual collectors to justify paying a premium and conducting call monitoring in Spanish.
  If using an outside vendor, an issuer should be sure to select partners that are bilingual and bicultural, are familiar with the card industry and who understand the contracting company's processes, terminology, and how it does business.
  By following those guidelines, issuers can improve collection results and retain Hispanic customers at a time when many financial-services companies are trying harder and harder to lure them.
  Astrid Rial is president and CEO of University Place, Wash.-based Arial International LLC. With offices in the U.S. and Mexico City, the consulting and training firm provides Business Spanish services to lenders serving the Hispanic market, including marketing and acquisition, and retention and collections. For more information, see www.arialinternational.com.