Debt Collection Agency – The Guardian Angel Of Debtors

Have you ever been contacted by a debt collection agency? Are you sweating over a phone call from a debt collector? Do not panic! They are legal people working to save you from a big financial crisis that you owe in the coming future.

First, check the details of the debt via email and validate their identity over the internet. If you think you are not the owner for the given debt, don’t try to avoid the debt collectors, instead, send a written cease notice explaining your concern. Now let’s understand what Debt collection is. It is a process of tracking payments of debts owed by an individual or a business firm. In much simpler terms, a creditor attempts to get back the credit or loan that the customer has not been able to pay over a while. A specialized organization in debt collection is known as a collection agency or debt collector. It could be an individual or a third party agency. Debt collector agencies or individuals act as agents who collect debts from the customers and repay them to the original creditor by charging them a notable percentage varying from 25% to 45% of the total amount as fees. Debt collectors deal with different types of debts. As mentioned by Lane and Co Solicitors business debt enforcement services, debts can be in any form - credit card, medical, automobile loan, personal loan, business debt, student loan or even an unpaid loan debt. Debt collection is a very real and necessary business in today’s world as it is important to settle it once and for all.  Several agencies deal with debt collection. Many organizations deal with business debt enforcement services which are very professional and experienced debt collectors who are the most successful in this business. Every credit provider has their policies for overdue debt collection. They will send you reminders with payment request by email, phone, or letter.  If there is no response to the frequent reminders, your account will be transferred to a debt collector. Factors to be considered while choosing a debt collection agency 

  • First and foremost, it should be analyzed if hiring a debt collector agency is essential or not – The role of the debt collector comes into play when your business has much unpaid debt over a period especially when you owe money from a brand new customer. Secondly when a customer is unable to stick to the payment plan that was signed while the agreement was made. 
  • Depending on the debt you owe, decide whether you need to hire a consumer or commercial agency. Consumer agencies focus on debt from individuals while commercial agencies help you recover debt from businesses. If you have debt from both the categories then hiring an agency specialized in both will benefit you.
  • Find out the age of the debt that has to be collected. Depending on the age of debts, an appropriate agency can be located who is specialized in recovering an old and new debt.
  • Determine the debt value, size, and debt collection frequency. If you own a business that has a number of debts and high debt value, it’s better to choose a large debt collection agency. Whereas if you have a small business, then hire a smaller agency.
How to find the right debt collection agency?Analyze company services:
  • Every debt collection agency differs in the service they offer. 
  • Enquire about the services they offer to figure out if you are hiring the right commercial debt collection agency can fulfill your business needs. 
  • Most of them offer the service to locate a debtor who moved to another city or country to avoid repayment.
  • Some offer the account transferring facility to another agency in case if the debtor has fled to another place or country.
  • Some have added-on services like bidding options and other consultations
 Find out the agency expertise:
  • Each debt collection agency differs in its focus and areas of expertise depending on the size of that agency. Do some research before fixing the deal.
  • Both your business and the agency should have a similar focus area.
                Choose an agency with the right proficiency:
  • Depending on the size, history, location and professional command each agency will have different capacities.  
  • If your business is big, it’s better to find an agency of the same size which ensures that the agency can handle the number of cases you have.
Find an agency with appropriate collection approach:
  • Your collection agency expresses the image of your business hence wisely select the agency that is fair, honest, polite, respectful and law-abiding when dealing with your customer.
 Validate the qualification of the agency:
  • Look for a licensed agency and make sure to possess a copy of it before you finalize the deal.
 Validate the agency credentials:
  • Have a thorough check on the certifications and credentials.
  • Look for an agency that is insured and bonded.
  • It’s safe to go for an agency that has membership in trade associations.
 Check the ethics and policies of the agency:
  • Look for an agency that does debt collection ethically as you don’t want to spoil the reputation of your company. 
  • Find out if the agency has had any disputes or complaints filed against them in the past.
 Make a proper judgment about the agency’s experience:
  • Look for the past success history of the agency.
  • Be clarified about the rates.
How to work with a debt collector agency effectively?
Check for the options of tracking the progress of your case online at any point in time. You shall be constantly communicating with them to get an update. If the commercial debt collection agency is dealing with a large number of cases, then a system needs to be placed where you receive online reports daily basis. Be clear about the fees and billing process before you start working with them. Shall check the parameters of the agency followed for debt collection before signing the contract. Know your boundaries, explain how your customers should be dealt with by the agency. Always make use of the additional benefits the agencies offer like training programs, newsletters, and webinars. 

Debt collection is a legal business in the future, if you receive a call from a debt collector, it is not to begin an abusive relationship. They are honest and doing their job. They must create a plan that helps for the settlement of your debts. Welcome them to discuss and find a solution for your financial crisis to lead a peaceful life.

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