One of the most necessary and beneficial assets you can have on your side is the service of a good debt collection agency. While this is true for just about any business, it’s especially true for those that are heavily dependent upon collecting on debts owed, such as credit card companies, banking companies, and medical practices.
All businesses that choose to work with a qualified debt collection agency enjoy many excellent benefits, including:
l Quick debt collection
l Less time, money, and resources spent on in-house debt collection
l Staff can devote time to other tasks
l Higher success rate on collecting older debts
To experience all of these benefits without any of the risks, it’s important to choose your debt collection agency carefully. Choose an agency that is well-versed in all the debt collection laws and that carefully abides by them.
For best results, choose an agency that employees an on-location staff, not just outside contractors. A working on-location staff can be personally trained on proper debt collection methods, while contracted workers tend to just be poorly trained people working from home and doing whatever they can to collect money and earn a commission.
You don’t want people desperate for a commission breaking the law and getting your business into trouble...and they really can get you into trouble! Your business could be held liable in lawsuits if an angry debtor decides to sue for unfair treatment.
Of course, you can reduce this risk by finding a debt collection agency that not only follows the rules but that also holds insurance to protect you in situations like this.
The agency should also follow the proper protocol for escalating debt collection efforts, which, in general, goes like this:
l Three or four letters are sent to try and recover a debt owed
l If the letters are unsuccessful, well timed phone calls can be made
l If the phone calls are unsuccessful, a civil lawsuit can be started
Ideally, of course, a debt would be collected before a lawsuit had to be enacted, but when that doesn’t happen, it’s nice to have a collection agency that can properly handle the whole process for you.
As you can see, collection agencies really can matter for your business and affect it in a positive way. You just have to find the right one to meet your needs.