The VoicE Q4
Return for Collection
(RFC) Account
Management
RFC
files are your Return For
Collection consumers. Every gym
has return for collection accounts to
some degree. These accounts fall
between 60 - 90 days past due. Day
1 to RFC (somewhere between 60-
90 days) of delinquency you and your
payment processor work together
through billing and communication
to get members current and keep
them satisfied. Once an account
goes to RFC status, or 60 - 90 days
past due, the billing is turned off by
the payment processor and it is up
to you now to engage with the con-
sumer to get them to pay and try to
save their membership. The good
news is there are highly qualified
preferred vendors who can provide
an RFC solution.
You still own these accounts. You
have the ability to control the RFC
process and work with a vendor to
mitigate negative experiences and
shut down a collection if it is escalat-
ing. You should not worry about fees
from the vendor for shutting down a
collection. Some worry if it is worth
it to collect and retain RFC accounts
with the risk of making someone
mad vs Forgive-and-Forget RFC
balances and then hope that person
will come back and rejoin.
With a third party, you will collect and
make more money on RFC accounts
while reminding past members about
14
the gym. However, there is a balanced
risk that you will make someone upset.
Generally, the upset consumer was
not going to come back anyway as
something else negatively contributed
to their gym experience. The approach
to not collect on the RFC account
means you don’t collect or retain
anyone now and you are simply waiting
and hoping to have them come back
in the future.
Opportunity for retention. We have
seen 20-50% of the people that pay in
RFC status do so by going back to the
gym and paying at the front desk. These
are membership saving opportunities.
There is now a chance to have a con-
versation and member engagement.
You can even work out a settlement
arrangement at the gym.
Collect money now and sign a new
agreement. Let’s say you have 20
customers that pay in RFC status each
month and each one is owing $100.
Let’s also say that half of that group
goes to the front desk to make
arrangements. That’s 10 opportunities
to collect & resign. That’s $1000 and
10 new agreements.
Your staff should focus on fitness
and facility management. Only you
can truly appreciate all that is going
on at the gym – need to sign new
agreements, helpful and opportunistic
staff to enhance the member experi-
ence, clean workout, and locker room
area, and the list goes on. A high
quality, professional third party can
partner with you to work on your
RFC accounts. The right partner will
handle this responsibility on your
behalf, not charge out of pocket fees,
and be very transparent and upfront
with all fees and services.
The GGFA has a great payment
processor vendor in ABC Financial.
Aldous & Associates is a preferred
partner with ABC Financial for third-
party collection work and these two
vendors enjoy complete API integra-
tion. These partners are vetted by
the GGFA executive team and have
demonstrated success and service
with current GGFA groups. In some
cases the API integration will report
collecting payments to payment
processing daily, and if someone
pays at the club, report that from
payment processor to collection
group daily. It will also place your
RFC accounts each month.
If done right, RFC collections will
help you save time and money while
making more money and signing lost
agreements.
Tyler Rice
COO – Aldous & Associates