Debt Collection on Holidays: How AR Teams Get Paid

Table of Contents

1. Why Debt Collection on Holidays Is Challenging
2. Manage Accounts Receivable in the Holiday Season
3. Tips for Collecting During the Holidays
4. FDCPA Considerations for Holiday Debt Collection
5. Top Tips for Getting Paid Before the Holidays
6. Automate Collections to Reduce Holiday Stress

Key Takeaways

• Debt collection on holidays requires planning, automation, and compliance.
• AR managers should reduce reliance on manual debt collector calls during peak holiday periods.
• The FDCPA prohibits debt collectors from contacting consumers at unusual or inconvenient times, including outside acceptable local time windows.
• Automation helps reduce repeated or continuous outreach that can violate regulations.
• Proactive invoicing and digital payments improve cash flow before year-end.

The holiday season is meant for celebration—but for accounts receivable (AR) teams, it can be one of the most stressful times of the year. Between office closures, delayed payments, and reduced staffing, debt collection on holidays becomes increasingly complex.

Rather than letting past-due invoices pile up or pushing your team toward burnout, AR managers can take a proactive, strategic approach to collecting debts before and during the holidays while staying compliant with the Fair Debt Collection Practices Act (FDCPA) and maintaining positive customer relationships.

This guide explores how to manage accounts receivable during the holiday season, best practices for debt collection calls, and top tips for getting paid before the holidays—without sacrificing employee morale.

Why Debt Collection on Holidays Is Challenging

Holidays disrupt normal business rhythms. Customers take time off, accounting departments close early, and invoices go unanswered. Meanwhile, AR teams feel pressure to close the year strong.

Manual outreach, especially attempting to collect a debt via phone, can easily cross compliance lines. Debt collector contacts made at an unusual time or without proper context can frustrate customers and expose businesses to risk.

Add in credit card delays, third-party payment processors, and limited staffing, and it’s clear why many AR leaders struggle during this period.

Manage Accounts Receivable in the Holiday Season

Strong holiday collections start with visibility and structure. If your AR processes already rely on spreadsheets, inbox reminders, or ad hoc follow-ups, the holidays will only magnify inefficiencies.

AR managers should prioritize:

• Clear invoice ownership and due dates
• Real-time reporting on aging balances
• Reduced manual intervention

Addressing common accounts receivable challenges ahead of the holidays allows teams to focus on high-impact accounts instead of chasing every overdue payment.

A centralized approach to accounts receivable management ensures nothing falls through the cracks when offices close or employees take PTO.

Tips for Collecting During the Holidays

Holiday collections don’t have to mean aggressive outreach. In fact, the most effective strategies often involve less direct contact, not more.

Best practices include:

• Sending friendly reminders instead of repeated or continuous phone calls
• Clearly stating the connection with the collection in all communications
• Offering self-service payment options to avoid unnecessary friction

Relying too heavily on debt collector calls increases the risk of contacting consumers at unusual or inconvenient times, especially across time zones.

Automation helps eliminate guesswork and reduces the need for manual escalation or legal action during a sensitive time of year.

FDCPA Considerations for Holiday Debt Collection

The Fair Debt Collection Practices Act (FDCPA) sets strict rules around how and when debts can be collected. During the holidays, compliance becomes even more important.

The FDCPA prohibits debt collectors from:

• Calling consumers at unusual times (typically before 8 a.m. or after 9 p.m. local time)
• Contacting consumers after they’ve informed the debt collector to stop
• Using repeated or continuous calls that could be considered harassment

The FDCPA prohibits debt collection practices that confuse or pressure consumers, including unclear messaging about whether the original creditor or a collection agency is making contact.

Even if you’re not a third-party or party debt collectors, internal AR teams should still follow best practices to avoid customer disputes and reputational risk.

Top Tips for Getting Paid Before the Holidays

If there’s one goal AR managers should prioritize, it’s accelerating collections before the holiday slowdown begins.

Proven strategies include:

• Sending invoices earlier with clear payment terms (what is an invoice)
• Offering multiple payment methods, including ACH and credit card
• Reducing friction with automated reminders instead of manual follow-ups

Shortening your days' sales outstanding (DSO) helps prevent year-end cash flow gaps. Tools that help reduce the average collection period can make a measurable difference before December hits.

Automate Collections to Reduce Holiday Stress

Automation is the most effective way to balance compliance, efficiency, and employee satisfaction during the holidays.

An automated collection system allows businesses to:

• Schedule compliant reminders based on local time
• Eliminate excessive debt collector calls
• Avoid manual errors when attempting to collect a debt

As part of a broader finance digital transformation, automation reduces reliance on human intervention, keeping your team focused, compliant, and less stressed.

With accounts receivable automation, collections continue smoothly even when offices close.

Final Thoughts: Modernize Debt Collection on Holidays

Debt collection on holidays doesn’t have to be disruptive for your customers or your AR team. With the right systems in place, businesses can collect outstanding balances efficiently, remain compliant with the FDCPA, and protect employee morale during the busiest time of year.

Instead of relying on manual outreach or last-minute escalation, AR leaders should embrace automation and proactive strategies to secure cash flow before the holidays begin.

Ready to streamline collections this holiday season?

Learn how Paystand can help with automated AR collection.