Monday, July 6, 2015

Why Debt Collectors and Quotas Don't Mix

There’s an organization devoted to protecting America’s consumers, even and perhaps especially those who are delinquent in their bills. That organization is known as the Consumer Financial Protection Bureau (CFPB), and it has received almost 80,000 complaints about debt collection agencies- complaints that reflect badly not just on the collection agency but on the company that hired it in the first place!

Why so many complaints? Well, some (but not all) collections agencies give their workers quotas that they must meet in order to earn money. As such, these workers will do anything within their
power to collect on a debt. Because they’re focused only on collecting and not on maintaining good relationships with customers, they resort to tactics like bullying, constantly calling debtors, and being purposefully intimidating or even threatening, which only serves to hurt both customers and the businesses the collections agencies are working for.

As a business owner, you don’t want to ruin your reputation by working with a bad collection agency. Nor do you want to potentially face a lawsuit based on the agency’s use of illegal collection tactics, as has happened to other businesses in the past. As such, you should be very careful about the debt collection agency you choose to work with. For starters, pick one that doesn’t force its employees to meet quotas to stay employed!

You may also want to consider working with a collections service that uses only automated and fully-compliant debt collection tactics. With these services, there’s no room for human error. Of course, there’s also not room for that human touch.

If you don’t feel that choosing an automated debt collection service is right for you and your business, then choose one that has the same outlook on customers and on customer retention as you do. Look for one that treats all clients, regardless of their payment history or lack thereof, with respect and that is as focused on maintaining your business’s good name as it is on collecting debts. If you can choose a service with these tips in mind, then you should be able to collect funds risk-free.

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