Friday, July 10, 2015

Consumer Complaints are on the Rise

Recently, there have been many reports on the high number of complaints against debt collectors being made to the Consumer Financial Protection Bureau (CFPB). The sad thing is that it’s not just the debt collectors who suffer when they make bad judgment calls and fail to abide by the
regulations put in place to protect consumers. No, the businesses that have hired them suffer too.
What’s even worse is that the diminished reputation and possible litigation that businesses face as a result of their debt collection services could be avoided entirely. One way these problems can be avoided is by being selective when hiring a collections agency and asking the right questions.
What kinds of questions should businesses be asking? Well, to begin with, they need to ask about the exact methods used to recover debts and if these methods are regulation-compliant. If they’re not or if the agency is hesitant to reveal its methods, it’s smart to choose a different debt collection agency.
The debt collection agency should also be asking questions of its businesses as well. Good agencies will want to know about the goals and purposes of the businesses they work for so that they can help them to achieve those goals. Furthermore, the best collection agencies won’t be focused just on collecting funds but on maintaining and improving quality relationships with customers.

The bottom line is that you don’t want to end up going to court over something that your collection agency said or did. You also don’t want to suddenly find that clients are talking negatively about your business all over the internet or that a host of complaints have been made about your business to the CFPB. You can prevent all of those things from happening if you simply take the time to be proactive and hire a debt collection agency that is on the same page as you.

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