Every state will have its own collection agency laws, laws
that dictate what types of businesses can use collection agencies and how the
collection process must be handled. Obviously, businesses should always strive
to work only with collection agencies that know and carefully abide by all of
these laws. Aside from that, however, it’s also important to find a collection
agency that’s actually going to do its job and benefit the business and its
reputation in the long run.
Referrals
One of the top ways for businesses to find good collection
agencies is to ask for referrals from others who are “in the know,” meaning
businesses and individuals who are likely to have used collection agencies in
the past. Some probable places to find great references include:
l Accounting
firms
l Business
contacts
l Law
firms
l Chamber
of Commerce
l Better
Business Bureau
Experience
While referrals can go a long way in selecting a good collection agency, businesses are encouraged to work only with the most
experienced agencies in the business. Even more importantly, businesses should
seek to work with collection agencies that have experience dealing specifically
with companies like theirs. Collection laws can vary from one type of industry
to the next, making it smart to work with an agency that’s familiar with the
industry’s common collection practices and unique needs and challenges.
Licensing
Under collection agency laws, collection agencies must be
licensed to practice in the state in which they’re located. For businesses that
only deal with in-state customers, working with a collection agency with only a
local license is fine. Businesses that deal internationally or nationally,
however, will need a collection agency that’s licensed to practice in all areas
where customers live.
There’s a lot to think about when selecting a collection
agency, but keeping these tips in mind can help businesses to make the right
decision.
No comments:
Post a Comment